The transformative impact of AI on real estate

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(In this article, Joenes Jemola, market analyst for Office-Services-Landlord Representation at Colliers, delves into the many ways artificial technology is revolutionizing real estate).

Artificial intelligence (AI) is quickly becoming a vital tool in our everyday lives. We are seeing AI and its applications being used across many industries, including health care, retail, manufacturing, and banking. Even real estate — which traditionally has been quite slow to innovate in terms of adoption of new technology — is gradually catching on. This novel technology is now finding its way into the many facets of real estate under a wide range of applications: from searching, analyzing, and valuing properties, monitoring markets, forecasting trends, and using virtual property tour technology, to enhancing construction processes, managing buildings, and facilitating home sales.

In this article, we will explore ways in which AI is transforming the real estate sector.

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Predictive analysis

One of the many uses of AI is its ability to identify patterns, correlations, and trends by analyzing mountains of historical data, and this brings plenty of benefits to real estate. Through predictive analytics, AI algorithms can quickly determine fluctuations in property prices, identify areas ripe for growth, and figure out the optimal timing for property launches, among many others. Insights quickly generated though predictive analytics give property developers actionable insights, helping them stay ahead of the competition, respond to market forces, and ensure their long-term success.

Property and facilities management

The potential benefits of integrating AI into business processes are immense, and more so if the business is labor intensive. One of the segments of real estate where AI can bring vast benefit to is property and facilities management.

The goals of property and facilities management largely fall under three major principles: conserving resources, reducing wasted time, and lowering the cost of operations. The benefits of AI align nicely with these goals, which can be greatly amplified when one is managing a large-scale, multibuilding operation where waste and inefficiency can have huge ramifications. Rather than manually completing repetitive and time-consuming tasks, AI can automate steps that will help property and facilities manager efficiently predict faults and schedule preventative maintenance, reduce energy expenditure, analyze labor spend, identify security risks, and generate reports and analytics. AI-enabled smart devices can also help property managers adjust building settings suited to user preferences, which can improve tenant satisfaction.

Urban planning 

Artificial intelligence also holds plenty of promise in the field of urban planning. AI technologies can assist urban planners create more intelligent, efficient, and sustainable cities, an example of which is Urban Insights, a tool for rapid urban prototyping developed by Singapore-based technology firm Digital Blue Foam. This technology can assimilate data from various open sources, enabling project teams to generate urban scenarios and compare the quality of different locations.

Another notable example is a groundbreaking AI-based urban-planning system developed by scientists from Tsinghua University in China, which was trained on human-designed projects and positive urban features. Detailed in the journal Nature Computation Science, the AI system consistently generated plans that are as good as (and at certain instances more superior to) plans crafted by human experts, all accomplished within a fraction of a second.

 

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