Planning to launch your own real estate platform? We hope that you are not forgetting to implement AI?
While real estate takes care of buying, selling, and leasing properties, AI takes care of automating such processes and making the decision quick. Artificial intelligence, machine learning, robotics, the Internet of Things (IoT) are emerging technologies that are constantly changing parameters of the real estate industry.
What is AI in real estate?
Artificial Intelligence (AI) makes use of machine learning, robotics, deep learning and other computer algorithms to analyze data and automate processes. Companies like (1) Redfin, (2) Trulia, (3) Zillow, (4) Getfloorplan, (5) Realtor.com, (6) Homebyte, (7) Hyro, (8) Compass, (9) HouseCanary, (10) TRIRIGA, (11) Doxel, (12) Houzen, (13) GeoPhy, (14) Enodo, (15) Autohost, (16) Propic, (17) NBCC India Ltd, (18) Prestige Estates Projects Ltd, (19) Rustomjee Developers, (20) Sunteck Realty Ltd, (21) Phoenix Mills Ltd, and (22) Oberoi Realty Ltd, etc. have been using artificial intelligence in real estate.
Why is investing in real estate profitable?
Property values tends to increase over an extended period. This provides investors with a reliable avenue for accumulating wealth. This appreciation in long-term contributes to the safety and sustainability of real estate as an investment choice.
Investing in real estate is good as it is a reliable ad time tested strategy to accumulate capital over time. While investing in stocks or mutual funds takes time and rewards may not be estimable, investment in real estate construction industry can help minimize loses. For most part, the value appreciates over time.
Rental properties are also a great source of revenue flow, which owe towards keeping the expenses low and occupancy rates high.
Real estate investment can be leveraged by buying a property from borrowed money which allows you to (1) invest in a larger asset, (2) fetch higher returns on investment, (3) earn profit on the entire value of property even if you put down a small percentage of the actual cost.
Investing in real estate also offers significant tax benefits. It helps to deduct expenses such as (1) mortgage interest, (2) property taxes, and (3) repairs from taxable income.
The cost value of goods and services increases over time. Therefore, investment in real estate protects against inflation.
Investors can exercise a control over real estate unlike stocks or mutual funds where people have very little or no control at all.
Real estate investments can be seen, felt, touched, and can be sold over time, unlike other types of investments.
How does inclusion of AI help real estate industry?
- Artificial Intelligence is a supporting stem and not the backbone of the real estate or any other business industry. It will enhance and amplify the impact of real estate investment, but will not completely replace it.
- AI is introduced to (1) reduce the human effort, (2) reduce cost, (3) increase the impact. AI helps predicting market trends and customer behavior. It can well learn how a customer has acted, and is likely to act in future.
- This can help the business in making strategic decisions. AI predicts property values based on (1) current market trends, (2) demands, (3) rental income in the locality, (4) property values, (5) market fluctuations through predictive analytics, (6) Budget Range, (7) Property type, (8) Area square feet, (9) Preferred locality, (10) Possession status, and (11) Sale type.
- AI can make marketing more effective by implementing targeted marketing strategies. Machine learning algorithms are designed to handle large scattered databases, and segregate them in a way so that it becomes effective.
- Additionally, AI tools can assist the buyers in managing documentation, which includes contract analysis, compliance checks, and closing.
- AI can help in prompting a building’s maintenance staff to directly contact a tenant.
- Also it can help enable smart home systems to monitor and control lighting, temperature, security systems, and appliances.
Top Applications of AI in Real Estate
AI is being used in real estate in a variety of ways:
- Common use cases of AI in real estate include the use of predictive analysis, chatbots, automated property management, personalized marketing, and financial transactions. Additionally, real estate applications are associated with virtual tours, mortgage loans, and virtual assistants that pique the curiosity of potential buyers. And accurately explore business possibilities. AI can enable automated assessment and digital analysis, providing faster, more accurate results than traditional methods.
- Artificial Intelligence generates customized property listings based on client’s choice and their previous viewing history.
- AI can also estimate the property price (current and future).
- AI is facilitating 3D modelling wherein an empty space can be visualized as a fully furnished home space.
- Real estate with artificial intelligence alleviates the installation of smart devices that can be operated with mobile phone or a remote computer.
- AI alleviates property management by helping managers collect rents from tenants, schedule maintenance and repairs, payment processing, managing workflows, managing collections, and market analytics.
- AI is also used to analyze borrower information like their (1) income, (2) credit scores, (3) employment history, (4) risk profile, (5) best rate to charge; AI tools are helpful in detecting and preventing fraud. These can be deployed in automating loan service tasks like customer communication and payment processing.
- Inclusion of AI can help in delivering near – instant decisions on mortgage applications.
- Besides, these AI can be used for virtual tours and visualization and for fraud and compliance detection.
- Use of advanced AI in Real Estate streamlines property management tasks like (1) maintenance requests, (2) building access, and more.
- AI in real estate helps in checking availability of resources and constraints that could help in generating project schedules automatically. Project managers are able to save time, cost, and efforts
Conclusive
One tap here, and a click there, blink your eye and a list of game changing innovations is at your disposal. This isn’t magic. Just a stream of curated efforts to disrupt and rapidly reinvent periodically. The fusion of intelligence has made the construction, buying and selling of lands, and built properties smarter. Adding IoT to it the combination becomes indestructible. AI is being included in real estate because it increases relevance of recommendations. Inclusion of AI helps the program quickly learn and implement the commands accordingly.
AI is always active. It never sleeps, or goes down. It is an array of commands that holds the potential to better sell anything at disposal. And it brings dynamism to a traditional setup by infusing speed into mundane processes. Opening a door by a key is a norm. But opening a lock by clicking on mobile screen is a reform. If you are asleep and someone knocks on the door, you can simply tap on your phone (with smart door lock app installed) and the door will be opened automatically.
Mobile application development companies are increasingly being hired to develop AI specific apps. AI has helped in measuring important metrics in real estate, predicting when maintenance is required. and reducing the chances of fraud or unauthorized activity by keeping a check on property prices, property documents, property maintenance, and land prices. And also gave potential customers a vision of the future. What their dream home would look like if they planned to settle here.
AI development companies make large amount of scattered data estimable, allowing them to make informed decisions across the board. From planning to management to sales to maintenance to marketing.