AI is the new big player in town and AI is everywhere. With a market size projected to reach US$305.90 billion by the end of 2024, it is no wonder everyone is investing in AI and trying to implement it everywhere.
With an annual industry that is projected to have a growth of 36.8% CAGR from 2023 to 2030, it is no wonder that every industry going to support AI implementation.
That is why we are going to talk about such an industry that can benefit a lot from AI implementation. We are going to talk about AI in real estate. We will talk about how AI is changing the real estate world.
We are going to discuss the benefits of AI in real estate as well as the use of AI in real estate and it is simply because AI-powered real estate can totally transform the industry and make operations efficient.
We are also going to find out how real estate analytics have changed the game and we will find out the improvement in efficiency with the introduction of AI in property management and even smart real estate solutions.
However, you can’t understand this change if you do not understand the traditional challenges faced by real estate.
This is going to be a very interesting blog so grab a cup of tea and sit down and enjoy this very informative blog.
Traditional Challenges Faced by Real Estate
Manual Paperwork
Real estate involves a lot of paperwork and most of these calculations are about transactions and other complex calculations because they play a significant role in real estate.
We are talking about transactions related to property deals and transactions related to rent contracts as well as complex calculations related to the rise and depreciation of properties and much more.
These complex tasks involve a lot of paperwork that can take up a lot of time for real estate agents and managers as well as real estate developers and owners.
There is a lot of documentation involved in real estate as well as property listing and tax filing as well as contract filing and much more.
Without AI, you can forget stuff like automated real estate transactions and automated contract creation and automated paperwork creation.
While some automation is possible with different kinds of enterprise-grade management software but we are not looking at smart solutions without AI. Regular software development solutions still need a lot of human oversight.
Manual Data Analysis
Any successful real estate agent will tell you that success in real estate is all about predictions and those predictions require sophisticated data analysis skills and capabilities.
This is just like the stock market, maybe a bit more stable. But the challenges are quite the same because if you want real estate success then you need to understand how markets work and when is the correct time for investments.
You also need to understand and read the market like the palm of your hand and be able to make correct predictions regarding holding or selling off properties.
These kinds of predictions are only possible with highly complex calculations that factor in multiple variables.
If you want that kind of capability without AI then you are looking at stacks of supercomputers with high computing capabilities that are able to predict market trends before they happen.
That is just not economically practical for any small or medium real estate company or even large ones. However, AI has the capability of completely transforming that with very accurate predictive analytics for real estate.
Manual Property Management
One of the most difficult tasks in real estate is going to be property management because it involves so many variables.
You need to factor in rent collection and maintenance as well as have a good and cordial relationship with tenants and be able to respond to the needs in a timely manner.
You have to do all that while keeping your costs in mind and also continue market research and keep track of investment opportunities.
That is a lot to handle for even large companies and the larger your operations become the more difficult these small tasks start to become.
Without AI, you have to do all that manually which means you have to keep track of the welfare of your tenants and also keep track of rent collection while factoring in inflation and maintenance investments, all the while being a real estate developer.
Manual Market Research
Market research is something real estate agents and real estate developers cannot ignore because they always have to keep track of market conditions so that they can price their properties appropriately.
However, market research can be quite difficult in a very dynamic market like the real estate market which changes a lot.
And if the people involved in real estate do not keep track of the markets, they stand a chance of losing a lot of profits.
Without AI, you can’t simply think of any automatic market research options that will allow you to keep track of market conditions and alert you as soon as something favourable comes up.
Not to mention the amount of data AI can analyse compared to any traditional method of data classification and analysis for market research.
AI can factor in as many variables as you want.
Now that we understand the traditional real estate challenges, let us look at how AI can completely transform the real estate industry.
The things we are about to mention can be implemented right now with the help of any reputed AI solutions company.
Benefits Of AI For Real Estate – AI Smart Use Cases
Automated Property Management
Property management can be one of the most difficult tasks for anyone involved in real estate because there are so many things to keep in mind in property management.
You need the right kind of people to clean the property and you also need the right kind of people to provide security as well as do all the maintenance the property needs from time to time.
There are so many things that you need to keep in mind that it becomes nearly impossible and you also have to keep them in mind at the right time or risk spending even more money.
That is where AI can be very helpful for you because AI will keep track of everything for you when it comes to property management.
AI will help you pay the bills at the right time and AI will take in complaints of your tenants automatically and add them to your maintenance schedule and budget them depending on the type of complaint.
For example, you can have an automated AI-powered system in place that intercepts emails from your tenants regarding the issues they face like a broken tap and then the AI can add those to your schedule for maintenance. It can even assign urgency levels to it.
Smart Investment Recommendations
If you want to be successful in real estate then you always have to keep your eyes open for investment opportunities and grab them at the right time.
This not only means opening up property listings from time to time in search of good prospective properties but it is also knowing when to sell your old property for assets that you can invest in new property.
While you can do this without AI but you are not going to have a complete smart system that predicts investment opportunities based on current market conditions.
However, if you do not want to leave anything to chance and only act on the best investment opportunities then you can try out a system like smart investment recommendations.
This AI-powered system will help you understand went to sell off old loss-making properties and it will also predict when new properties might be good to buy.
It will provide smart recommendations based on factual market data and tally them with your conditions to make sure you win big.
Smart Analytics and Valuation
If you want to be better than your competition when it comes to real estate then you need things like smart investment recommendations and other AI benefits.
In order for AI to work properly you need the best data analysis abilities. The best thing with AI is that it will not only help you with data analysis but it will then utilise that data into all its other smart features.
This means you do not have to look at a mountain load of data and just keep scratching your head about where to begin because AI will do the analysis for you.
This analysis will come in handy everywhere but it will definitely come in handy when it comes to things like property valuation.
Buying and selling property is very much like stocks and while it is very easy to understand the valuation of your stocks but it can be difficult to understand the valuation of your property.
However, if you present all the data points and factors to AI regarding your property then it can seamlessly analyse and calculate your property’s valuation for you.
Automated Paperwork
When it comes to real estate, one of the most mundane tasks real estate agents have to do this paperwork.
This is not only boring but there is another big problem with it.
Humans are prone to error. Humans can and do make mistakes but when it comes to such big numbers and transactions like in real estate, these mistakes can become very expensive.
That is why AI can completely automate your paperwork process which means AI can detect transactions and AI can send out automated transaction requests to your clients.
AI can keep track of property valuations and AI can crosscheck paperwork with the data to make sure that the paperwork is accurate and done in the correct format.
The sky is the limit when it comes to AI implementation in real estate.
Automated Compliance
Real estate is one of the most heavily regulated industries and it is for a good reason. Real estate can make or break someone’s life because it is such an important investment.
That is why tons of government regulations and taxes need to be filed when it comes to real estate transactions and investments.
It might be very difficult to keep track of all these regulations and to always stay in compliance with the government rules and regulations.
AI can help you do that because AI can precisely calculate all taxes and make sure all the paperwork is filed correctly.
If you do not want that level of automation then you can have some degree of automation and enable the AI to always send out reminders to you regarding tax filing and much more.
This will always help your business stay in compliance with the rules and regulations.
Smart Listing and Portfolio Automation
If you want to be successful in real estate then you need to build and display your portfolio to show credibility and it is something that real estate developers can do better.
That is why if you want to specify all your achievements and experience that you have in real estate along with all the properties that you own in the most effective way possible then AI can help you with that.
AI can help you list all your properties with every feature and amenity and every detail of the property along with the physical location of the properties.
AI can analyse local map data and also add things like the nearest gyms or playgrounds and other important things like the nearest schools and much more.
While you can manually create your portfolio but it is simply not worth it spending so much time creating something that AI can do in the blink of an eye.
AI will help you provide information regarding all your assets most articulately and accurately as possible for your clients.
Smart Virtual Assistants and Chatbots
Speaking of property listing and portfolio creation, you might need a way for your prospective clients to look at your listings and also have all their questions answered.
That is where we come to AI-enabled chatbots and smart assistants. This is one of the easiest things to implement in AI and you can have these AI-powered chatbots on your real estate app or website.
People can look at all your property listings and if they have any complex questions regarding them, they can ask these smart assistants or chatbots and get the exact answer they want.
For example, a couple might be looking for a property that has good choices for children’s daycare nearby.
If they click on a property listing and simply ask the chatbot about the nearest daycare, the AI chatbot can filter out and only show properties with the best daycare options for them.
If you implement this correctly then it might even replace real estate agents for you as the owner and developer.
We hope this blog helps you understand the importance of AI in real estate. However, there is still something you need to consider. You need a reliable company to implement AI at every step of the process when it comes to your real estate business. You need a proper AI expert.
We are that AI expert because we are Think To Share IT Solutions Pvt Ltd and we are one of the pioneers to utilise the complete potential of AI in India.
We utilise AI for nearly all our projects including our proprietary apps and services and we would love to implement AI to your real estate business and help you achieve peak business efficiency and business success.
Along with AI implementation, we also provide nearly every kind of IT service imaginable from web design and web development to mobile app development and software development and much more.
We welcome you to visit our website and check out everything we do.
Common AI-Enabled Real Estate FAQs
How AI and digitalisation are changing the real estate sector?
The real estate sector is very traditional but we are definitely seeing AI utilisation everywhere in real estate right from the aspect of real estate investments to the aspect of real estate management.
We are seeing real estate companies implementing AI when it comes to their property listings with the implementation of AI chatbots for their property listing visitors.
We are also seeing AI being implemented for automated paperwork and automated property management and scheduling.
The thing about AI in real estate is that this is one such industry that can benefit a lot from AI because being successful in real estate means taking care of a lot of variables and AI can help automate a lot of the process.
How is AI being used in commercial real estate?
AI is being used everywhere in commercial real estate right from smart investment recommendations for real estate companies to even suggestions for selling real estate properties at the best margins.
Real estate companies are using AI for tenant management and they are also utilising AI for every other aspect of real estate.
This includes data analysis and also includes important predictions that help in risk mitigation when it comes to real estate investments.
We are basically seeing AI implementation in every aspect of real estate. The sky is the limit when it comes to AI utilisation in real estate.
How can estate agents use AI?
Real estate agents can utilise AI for client management and they can program the AI to send out notifications to prospective clients of any price changes.
They can also use AI-enabled systems to answer important questions whenever they go out and show properties to clients.
Real estate agents now can be more accurate with paperwork as they do not have to stay busy with paperwork so that they can focus on client management even more.
This is just the tip of the iceberg because real estate agents can now automate a lot of their work to AI so that they can focus on clients.
Will AI replace real estate developers?
The one thing AI can never replace is real estate developers and real estate owners.
This is because you simply cannot have AI buy property and you simply cannot have AI shake hands during real estate deals and own property.
You are still going to need a human if you want to buy land as well as finance deals and allocate builders and talk to them and develop projects and go into partnerships.
This is something impossible for AI to do. Humans will always be the owner of real estate and the most AI can do is be a loyal assistant to that process.