How is AI changing the Real Estate Landscape?
Often unnoticed, Artificial Intelligence is being used in more and more areas. Discover how neural networks’ capabilities create new opportunities in the real estate industry.
While there was some debate in the past about how significant a role artificial intelligence would play in our daily lives, that debate is now essentially over. Now, in 2022, the message is clear: artificial intelligence (AI) is here to stay. Aside from robots, Netflix, and Amazon, artificial intelligence plays a significant role in almost every aspect of life, including real estate.
“AI is expected to add 15.7 trillion US dollars to the global economy by the end of 2030.” - According to Forbes.
AI in real estate has advanced and accelerated significantly in the last five years, reshaping one of the world's oldest industries. But what are the applications of AI in the online real estate market?
AI in Real Estate
Real estate companies are increasingly employing artificial intelligence in all aspects of home buying, selling, and financing.
In a matter of seconds, algorithms can sift through millions of documents, examining property values, home upgrades, debt levels, and even some personal information about a homeowner.
"AI enables a large real estate corporation to save approximately $4.85 million every six months." - According to Vincent Bryant, Deepki's CEO and co-founder.
Suppose you want to relocate to a new area, and in addition to looking at available homes, you consider factors such as amenities, connectivity, pricing, security, and so on. Similarly, other customers with various profiles scan the same area.
AI as technology tries to learn from all profiles' decisions and analyses their scanning behavior. Thus, after a certain number of cases, an AI engine will recommend the appropriate parameters to aid a specific type of consumer's decision. And it will advise the seller on what to prioritize in the listing and exclude.
An effective AI engine automates this entire decision-making process at scale, resulting in near-perfect outcomes for the buyer and the seller. As a result, what began as a tech layer to an existing property and its online listing evolves into the business's backbone while significantly improving the user experience.
5 Ways AI is Changing the Commercial Real Estate Sector
Let's look at the top five ways AI technology is causing significant changes in commercial real estate—and what that means for the industry in the future.
It Prevents Budget Overrun
This is one of the critical aspects where AI can help customers and real estate agents. This is due to the lack of a long history of budget overruns in the construction industry.
The Sydney Opera House is a well-known example of a budget overrun, built for 70 million US dollars, or 1357 percent over budget. Almost all mega-construction projects are completed while exceeding 80 percent or more of the budget.
Doxel, a California-based start-up, provides a solution that leverages the power of AI, LIDAR imaging, and robotics. The platform uses autonomous robots to capture 3D images of construction sites. These images are then fed into AI algorithms, which analyze the data into valuable insights. It enables project managers and engineers to respond quickly to current or upcoming issues. The outcomes provided by this platform are promising and effective, allowing project managers to save up to 11% of the planned budget.
These neural networks most commonly use the following historical data and factors:
- Size of the project Contract type
- The level of competence of working teams
- The project's start and end dates
It Streamlines Transactions
Every real estate agent wants to offer their clients a smooth and efficient transaction experience. No other technique streamlines and improves the transaction process the way machine learning and AI does because it provides:
- Data field that auto-fill
- Reporting in depth
- Strong compliance checks
- Smarter Mobile apps
- quicker closing times
Many businesses use machine learning techniques in their CRMs to generate automatic reports about valuable data insights. It allows real estate agents to learn about their customers instantly and saves them time manually searching for each transaction.
Dotloop is one of the most successful machine learning solutions, employing sophisticated algorithms and machine learning techniques. It enables managers to learn about their employees' performance to provide the best possible service to their customers. It also improves, personalizes, and streamlines the transaction process for customers, resulting in a more enhanced, personalized, and seamless experience.
It Provides Virtual Tours
Virtual tours are the most recent technological advancement in the real estate landscape. Customers can follow 3D views of the property online with virtual tours.
This is particularly useful for properties located in remote areas or abroad and still under construction. Virtual tours with zoom-in, panorama, and spoken notes are a simple and cost-effective way to conduct landlord-tenant meetings.
It Provides Property Management
Property monitoring requires a significant amount of time and effort. AI can help with this by better monitoring and tracking people, requiring fewer people to be involved in property management, a significant issue for large estates and complexes.
"Investing in artificial intelligence (AI) and human-machine collaboration could boost a company's revenue by up to 38% by 2022 and increase employment by 10%." - According to a recent Accenture report.
It Facilitates the Evaluation of Property
Furthermore, one of the critical skills that real estate agents rely on is AI's ability to "predict" the future. This is especially useful when estimating property values and rental rates. In this case, the automated AI application testing model may gather information from public records, alternative routes, crime rates, and school district estimates to generate a specific area value analysis.
This version of the desktop test proved helpful during the coronavirus outbreak. Furthermore, real estate agents can better analyze the investor-related market when adding new properties to their portfolios.
How Can Investors Benefit by Incorporating AI Into Their Real Estate Businesses?
Now that you've learned about how AI learning can benefit the real estate industry, it's time to look at how investors can benefit from this technology.