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The global property industry is on the precipice of a revolution driven largely by the wonders of artificial intelligence (AI). Whether it’s streamlining paperwork processes or improving the speed and accuracy of decision-making, AI could reshape the way residential properties are bought, sold, and managed worldwide.
According to Forbes, AI technologies are being embraced by three-quarters of leading real estate brokerages in the U.S. That’s according to the latest 2024 New Delta Media Survey. Below, we’ll explore the implications for the real estate sector now that the AI cat is well and truly out of the bag.
It’s never straightforward to achieve an accurate valuation for a residential property. Historically, valuers have utilized a blend of manual appraisals of the property’s condition, combined with analysis of trends within the local and regional property markets.
However, there are signs that some platforms are beginning to improve the efficiency of the valuation process. According to the leading ‘we buy any house’ platform, SellHouseFast, those prepared to sell a property for cash will receive an initial, no-obligation offer fast enough to complete a sale within just seven days. That’s an indicator of how technology and AI is giving property valuers and investors greater clarity and certainty over fair market prices.
With AI, prospective buyers of residential property will soon be able to accelerate their property search and find their dream home faster than ever. AI will make it easy to input buyer preferences e.g. budget, location, property type and other specific criteria, and platforms will assess the market and recommend homes accordingly.
Machine learning algorithms will improve their functionality and refine their suggestions over time, improving their accuracy for homebuyers. It has the potential to be a huge time-saver, not only for buyers but for real estate agents too, since they get eyes on listed properties faster than before.
Virtual tours have become a popular feature among real estate agents in recent years. It’s an opportunity for those who are potentially moving further afield to see vacant properties up close and personal without having to fork out money for fuel or flights to visit in person.
AI could take virtual tours one step further by enabling virtual staging of vacant homes. Agents would be able to digitally furnish an empty property to showcase its true potential.
In an age where carbon neutrality and sustainability are two of the biggest buzzwords of the property industry, AI can help housebuilders to lead the way in designing and building eco-friendly homes.
AI tools will be able to optimize resource use in property development by analyzing environmental data quicker and recommending everything from sustainable materials and optimal building layouts to the likely energy consumption of a project.
By improving the efficiency and transparency of the property industry, AI is playing its part in reshaping the key areas of the real estate journey. McKinsey believes generative AI could yield anything between $110bn and $180bn in added value for the global real estate market, which awaits AI’s take-off moment with bated breath.
