How AI is shaping the future of the real estate market

AI in the real estate sector has undergone a profound transformation, leading to fundamental changes in the daily routines of real estate agents, appraisers, mortgage lenders, developers, and even homeowners. This evolution was already underway, but the release of ChatGPT undoubtedly accelerated the implementation of AI-based PropTech solutions in the real estate business.

The utilisation of AI within the real estate domain is characterised by its multifaceted nature. It encompasses analytical tools that empower decision-makers with valuable insights for investments and decision-making, as well as automated solutions that enhance the overall customer experience for professionals throughout the industry.

For instance, appraisers now profit from Automated Valuation Models (AVMs), the backbone of real estate valuation solutions like ours. AVMs are software-driven tools utilised in the real estate sector to assess property value. By employing mathematical algorithms and existing data sets, these tools calculate the specific value of a property.

AI in the real estate sector has also significantly boosted real estate agents' efficiency: AI-driven platforms generate property recommendations tailored to each client's preferences, while automated bots efficiently sift through new leads to uncover hidden gems. Additionally, mortgage lenders base their underwriting decisions on AI-driven risk calculations. At the same time, developers make informed choices regarding construction sites with guidance from AI platforms that specialise in hyperlocal zoning regulations.

AI for real estate companies: 5 examples of use cases

1. Analytics

One of the most common and practical applications of AI in real estate is analytics. Property value estimates often rely on analytics driven by AI algorithms. At PriceHubble, for instance, we leverage the best of Big Data and AI to generate the most advanced explainable valuations and insights for residential real estate professionals.

Analytics is also crucial for commercial real estate investments, with real estate investors, agencies, and economists harnessing AI to foresee market trends, gaining a competitive edge in securing properties at the right price.

2. 3D modelling

Visual representations have gained significance in real estate, and the industry is capitalising on “digital twins,” AI-based computer images enabling users to explore spaces digitally. PriceHubble partner Nodalview is a leader in this technology, providing 3D virtual property tours via augmented reality and other features, allowing potential buyers to inspect properties remotely before in-person visits.

This technology expands the pool of prospective buyers and reduces costs for buyers, sellers, and agents by pre-screening potential buyers. Other providers are also developing similar technologies, showcasing renderings of properties that do not yet exist, aiding architects and offering cost estimates based on various designs.

3. Smart home devices

While real estate is a vast industry, smart home devices represent a rapidly growing niche within the sector. These are devices that enable remote property monitoring for landlords and homeowners. These include intelligent doorbells, locks, thermostats, cameras, and other devices that notify users of potential issues within the property.

AI allows these devices to learn user preferences and adjust settings accordingly, resulting in utility cost savings, improved tenant satisfaction, and proactive maintenance management, preventing significant repairs.

4. AI in property management

Property management is a critical real estate subsector, and artificial intelligence is pivotal in renter screening, rent collection, and maintenance scheduling. AI chatbots assist in tenant screening, addressing questions about rental rates and availability, and guiding applicants through the application process, reducing the workload for human agents.

Automation via AI aids in payment processing, workflow management, market analytics, and collection management. AI assistants generate reports tracking leasing performance to enhance occupancy and operational efficiency.

5. Mortgages

AI's adoption extends to financing, specifically mortgages. Lenders can leverage AI via an underwriting API, for example, to analyse borrower information such as credit scores, income, and employment history to evaluate risk profiles and determine optimal interest rates.

AI tools are instrumental in fraud detection and prevention, automating loan servicing tasks such as payment processing and customer communication. Some mortgage lenders use AI to provide near-instant mortgage approval decisions quickly.

Will AI in real estate transform the landscape?

The real estate industry is already witnessing AI's influence in analytics, property estimates, smart home devices, mortgages, and more. As AI technology advances, its role in real estate is poised to expand further.

Although AI-based solutions are not meant to replace human expertise, in today’s ever-evolving landscape, staying informed and embracing AI-driven technologies is not just a competitive advantage; it's necessary for those looking to thrive in the rapidly transforming world of real estate. As we witness AI's continued integration into the industry, the only certainty is that data, technology, and the intelligent capabilities of artificial intelligence will drive the future of real estate. So, fasten your seatbelts because the real estate industry's journey into the future has just begun, and AI is steering the way.

Do you have further questions about AI and how to use it in your business? Don’t hesitate to reach out to one of our experts: