#Japan #Minato #SRE Holdings #Real Estate AI #SRE AI

SRE Holdings Achieves Significant Milestone with 2 Million Appraisals

SRE Holdings, headquartered in Minato, Tokyo, recently announced a major achievement: its AI-powered real estate appraisal service, SRE AI Assessment CLOUD, has surpassed 2 million appraisals. This milestone demonstrates the service's extensive adoption across the real estate and financial sectors, bolstered by consistent usage over time. The achievement serves as a crucial metric for bolstering revenue growth and profitability within the company’s AI Cloud & Consulting (AICC) segment.

Background: Challenges in the Real Estate Industry and Company Initiatives

The real estate industry has long struggled with the challenges of appraisal work becoming too personalized, increased workloads, and inconsistencies in decision-making among personnel. As labor shortages become more pronounced, there is a pressing need for systems that enable teams to deliver prompt and evidence-based proposals with limited staff.
SRE Holdings launched SRE AI Assessment CLOUD in 2018, leveraging proprietary transaction data gathered from its real estate brokerage and resale operations, combined with machine learning technologies. Continuous improvements have been made based on practical challenges faced in the field, refining the service into an AI cloud solution tailored specifically for the industry.

Significance of Surpassing 2 Million Appraisals: Integrated and Practical AI

The SRE AI Assessment CLOUD supports a variety of appraisal methods beyond AI assessments, including comparative transaction valuation, income approach valuation (optional), and cost approach (optional). It is versatile enough to appraise properties for both end-users and investment purposes.
The service includes report generation capabilities for purchasing intermediaries and supports API integration, allowing real estate companies and financial institutions to adapt it to their operational workflows seamlessly. With a service continuity rate of 99.6% and a monthly cancelation rate of just 0.4%, the resilience to price hikes and deep integration into operations are evident. Following a price adjustment in 2022, the cancellation rate improved (from 0.7% to 0.4%), reflecting significant switching costs for users.

Quantifiable Benefits Created at the Operational Level

In practical terms, the time taken for appraisal tasks has dramatically reduced from 180 minutes to just 5 minutes, achieving a staggering 97% reduction. The appraisal error rate has also been improved to 5.6%, compared to the industry standard of 9-10%. Notable results from specific implementations include:

• - Appraisal report preparation time: Reduced from over 1 hour to under 10 minutes for real estate brokers.
• - Increased case handling capacity: Expanded by four times per representative in financial institutions.
• - Standardized output quality: Even less experienced representatives are achieving consistent quality, contributing to operational standardization.

Contribution to AI Cloud Revenue Growth

SRE Holdings has set an ambitious target for its AICC segment, aiming for a 26.1% year-over-year growth in profits by the fiscal year ending March 2027. The SRE AI Assessment CLOUD is positioned as a core product supporting this growth.
The impressive 2 million appraisals will directly contribute to the company's Annual Recurring Revenue (ARR) growth through mechanisms such as:

• - A 99.6% continuity rate preventing cancellations, ensuring stable ARR growth.
• - Increased frequency and depth of appraisals enhancing upsell potential to higher-tier plans.
• - Accumulating performance data improving model accuracy and strengthening pricing power.
• - Successful implementations with financial institutions serving as references for acquiring large enterprise clients.

Industry-Wide Impact: Cumulative Efficiency Gains of Approximately 8.5 Million Hours

As of the third quarter of fiscal 2026, SRE Holdings estimates that the cumulative efficiency gains from the SRE AI Assessment CLOUD have reached approximately 8.5 million hours since 2021. This translates to about 27.2 billion yen in cost savings for client companies when converted into labor cost savings.
While this value has been realized on the client side, it has flowed back into SRE’s ARR through the 99.6% high continuity rate and 0.4% low cancellation rate, showing that SRE AI Assessment CLOUD has established itself as a fundamental operational infrastructure rather than just an appraisal tool.

Future Outlook

Following the launch of the SRE AI Assessment CLOUD Financial Institutions Package in March 2026, the company aims to fully roll out its services to mega banks, regional banks, and credit unions. This package, designed to comprehensively support collateral evaluations and loan reviews, expects to surpass the average revenue per user (ARPU) levels of current PropTech solutions.
Moving forward, SRE will continue to enhance its features based on field feedback and provide industry-specific AI cloud solutions that are less prone to replacement by generic generative AI. The company's commitment to improving productivity in real estate and financial operations while establishing transparent evaluation and decision-making environments will drive industry-wide digital transformation (DX) and automation transformation (AX). These efforts will not only support customer growth but also bolster SRE's long-term corporate value enhancement.

About SRE AI Assessment CLOUD

The SRE AI Assessment CLOUD is an advanced real estate appraisal system developed by SRE Holdings. Utilizing AI, it combines rich data with machine learning technology to deliver high-precision appraisals quickly. It accommodates various appraisal methods, including comparative transaction assessment, AI assessment, and income approach (optional), covering both primary use and investment properties. Additionally, the system includes report generation capabilities for purchase intermediaries and supports API integration for real estate price estimation.

About SRE Holdings

SRE Holdings operates with the vision of “updating lifestyles and healthcare through technology,” as a LifeTech company integrating business with AI. It specializes in providing industry-specific AI through its AI Cloud & Consulting and Life & Property Solutions, focusing on health care facilities and real estate. SRE Holdings' unique circular business model leverages data generated on-site to benefit AI, which is then reinvested back into operational businesses, strengthening its position as a leader in sustainable corporate value enhancement.