Previous research has shown limited exploration of how digitalization impacts the real estate valuation process. This study addresses that gap by investigating how digital twin technology can reduce risk and increase transparency in property valuation, particularly focusing on net operating income (NOI) within the direct capitalization method. Using a qualitative approach and abductive reasoning, data were collected through semi- structured interviews with nine key actors in the Swedish real estate industry.

Findings indicate that digital twins can improve the accuracy and reliability of valuation inputs by providing real-time, data-driven insights about building status, energy performance, and spatial measurements. Through the integration of BIM, sensors, and real estate management systems, digital twins support more precise forecasts of operating costs and revenues, enabling better decision-making.

However, the study also highlights legal and organizational barriers, especially regarding GDPR compliance and data privacy. Several companies have adopted strategies such as anonymization and local server solutions to reduce exposure to regulatory risks. Overall, the study contributes to a deeper understanding of how digital twins may become essential tools for reducing valuation uncertainties and enhancing operational and strategic decision-making in the real estate sector.