Is AI the future of Real Estate post COVID-19?
Where the outbreak of COVID-19 pandemic relegated every business around the world; with advisories of minimal human interaction resonating everywhere, it is ‘technology’ that kept industries, and businesses alive amidst the pandemic. Moreover, where the pandemic has stagnated the daily activities of life, it has also made decision-makers to deliberate and rely on the role of technology. Amidst these unfavourable times, Artificial Intelligence (AI) can cover up the losses and to catch up with the business as usual.
Artificial Intelligence and Real Estate
Termed as one of the marvels of the 21st century, Artificial Intelligence (AI) is said to become a permanent component of human lives.
AI is the simulation of human intelligence in machines having the ability to make decisions on their own – similar to human beings; thus minimising the possibility of human errors. In the initial phase of progression, Artificial Intelligence is assisting the humans and their cognitive processes, however, at its pinnacle Artificial Intelligence is being assumed to overtake the human roles in future.
In this backdrop, the real estate sector is no foreigner to Artificial Intelligence, the practices around the world show that real estate is also adjusting to the ‘data-focused’ world. With the third wave of PropTech (PropTech 3.0) seeping through the business as usual practices of real estate, the future outlook of the real estate world will completely change in the upcoming time. In the context of changing global environment and technology, AI is acting as a point of departure for many businesses. 90% of entities related to the traditional real estate sector believe that technology will open the gateway of opportunities for their businesses. Moreover, the decision-makers of major real estate firms are thinking to amalgamate the real estate sector with Artificial Intelligence in order to have a competitive advantage while at the same time broadening the scope of their businesses. Hence, AI has the potential to become a success story of the real estate sector.
Artificial Intelligence in the real estate sector can help to achieve transparency and revamp the traditional practices that have kept the gains of the real estate sector at bay. Similarly, data analysis, construction activities, architecture, and market valuation can make the most out of Artificial Intelligence by efficiently computing the data using algorithms.
Future of AI-driven Real Estate
The future of real estate with AI will transform future discourse in the following ways:
Data gathering and distribution
The intervention of Artificial Intelligence in the real estate sector will remodel the way data is gathered and distributed. With numerous real estate companies relying on data to give an opinion on real estate investments; the potential investors through machine learning processes will get an accurate advisory regarding their investments.
AI through the gathering of data will also help to mitigate the risks that had not been considered before. This will help to evolve a risk assessment mechanism for future transactions.
Real Estate Valuation
Real Estate Valuation is an important component of real estate businesses which corresponds to sales, portfolio management, and lending. Contemporarily, many real estate corporations have employed AI in the valuation of real estate; the AI has assisted in gauging the potential economic value for a property, the probability of natural disaster in the area, and the state of the local real estate market.
Geospatial analysis is another feature associated with AI. The geospatial analysis becomes necessary when a real estate entity has to be analyzed in the physical context. The advanced spatial techniques are helping different firms around the world to evaluate the sites while getting an insight into the terrain and the surroundings. Thus, AI holds the key to success in the real estate sector.
Where AI is giving rise to new practices, 3D augmentation is another feature that will enable the buyers to have a virtual look at building designs before the start of construction. This will reduce the construction costs and will exclude the errors in the designing process.
Artificial intelligence undoubtedly possesses a disruptive potential to transform not only the real estate sector but also the world, as we know it. This technology is growing day by day.