Artificial Intelligence has started to transform the way things are done in the real estate industry. It began slowly, but the need to use AI-powered platforms became inevitable in the last two years.

Many developers, real estate companies, property investors and consultants, and house builders across the world adapted to the data-focused trends and embraced the latest technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), to improve their position on the market. 

Turning missed opportunities to profitability

Developers and investors are always focused on understanding where to buy property and when to generate development, so they need to be able to use data to get fast and accurate insights to inform their decisions. Real estate data can be diverse and chaotic, which makes it even harder for analysts to evaluate dozens of millions of records or statistics to identify patterns and have a clear picture. Keeping track of so much data is not only challenging, but it translates through missed opportunities and profits. 

Advanced technologies can change the way data is interpreted and managed. Machine learning algorithms make it possible not just to gather and analyse data but connect various sources of information and create patterns and forecasts. These results are extremely valuable in conceiving investment strategies and maintaining a competitive edge.

Many industry players and decision-makers are already discussing the benefits of AI-powered applications on their organisations and the new world of possibilities they have brought along. From analytics that supports decision-making and investments to automation, AI has the potential to significantly improve the real estate market, and the Sentium team is ready to offer full support to its clients.

“Our Artificial Intelligence systems are able to forecast real estate price movements with 80% higher accuracy than the leading products from Amazon and Google”, stated Henry Smith, the CEO & Founder of Sentium Consulting.

8 ways AI can impact the Real Estate market

We have identified eight ways in which AI can be applied to improve different aspects of the real estate industry:

• Property Search and Recommendation: AI can analyse vast amounts of data, such as estate listings, demographics, and market trends, to provide more accurate and personalised property recommendations to investors and developers. AI-powered algorithms can consider individual preferences, budget, location, and other factors to match potential buyers with properties that meet their specific criteria.
• Pricing and Valuation: AI algorithms can interpret historical and current property data, such as recent sales prices, estate features, and market trends, to provide accurate valuations and pricing suggestions. They can help sellers determine the optimal listing price and assist buyers in assessing the fair value of a property.
• Predictive Analytics: by evaluating historical data, AI can identify patterns and trends in the real estate market, enabling more accurate predictions of future market conditions. This information is extremely valuable because it can help investors, developers, and real estate professionals make informed decisions regarding investments, property development, and market timing.
• Virtual Reality (VR) and Augmented Reality (AR): AI-powered VR and AR technologies can create immersive experiences for buyers and renters. Prospective clients can enjoy virtual tours of properties, view 3D models, and visualise potential renovations or interior designs. These technologies take property viewing to the next level, enhancing experiences, saving considerable amounts of time, and allowing clients to explore properties remotely from the comfort of their office or home.
• Risk Assessment and Fraud Detection: AI algorithms can process and analyse large volumes of data to assess risk factors associated with real estate investments, such as property location, economic indicators, and market stability. AI can also help detect fraudulent activities, such as identity theft, money laundering, and real estate scams, by flagging suspicious transactions and patterns.
• Property Management: AI can streamline property management tasks by automating processes like rent collection, maintenance scheduling, and tenant communication. Smart home technologies powered by AI can also monitor energy consumption, security, and maintenance needs, optimising efficiency and reducing costs for property owners.
• Market Research and Lead Generation: AI algorithms can gather and evaluate market data, including social media sentiments, online search trends, and economic indicators, to generate insights on market demand, identify potential leads, and target marketing campaigns more effectively.
• Legal and Contract Analysis: AI-powered tools can assist in reviewing and interpreting legal documents and contracts, a deeply valued activity. Thus, it helps real estate professionals and lawyers to save time, reduce errors, and identify potential risks or discrepancies.

It is important to mention that operating models vary for each company, and every project comes with specific requirements that call for a careful evaluation. However, the impact of the new technologies on business operations is undeniable, and implementing these solutions sooner rather than later can save dozens to millions of pounds per year, depending on the organisation size.

If you have questions and want to know what advanced solutions we can provide to support your business operations with immediate results, get in touch and we will answer them.