AI's Role in Real Estate Development

WASHINGTON – In real-estate development, artificial intelligence (AI) has emerged as a tool for developers and investors to effectively gauge market shifts before they occur. AI also could change how we build, market, and manage properties.

Vast datasets that include historical property data, demographic shifts, economic indicators and current market trends can be processed by AI to provide greater and more accurate insight into neighborhood growth and the rise and fall of market prices. In today's 24/7 marketing cycle, AI also can help virtually stage a property and provide a visual narrative that real-estate professionals can show online with minimal physical work.

A HomeLight survey shows that 83% of agents agree that a staged home will sell faster than a non-staged home, and using AI to virtually stage a property can save firms time and money. Chatbots that use AI also can improve customer service by answering questions at any time of day and in multiple languages. AI also can automate property management and reduce errors, allowing property managers to focus on strategic tasks that require a human touch.

Some ways to operate property management include automated rent collection, maintenance requests handling, energy management, communications channels and tenant screening and onboarding. Businesses that leverage automation have experienced a 14.5% increase in sales productivity and a 12% reduction in marketing overheads.

Applying these tools to property management boosts your operational competence and positively impacts your bottom line.

AI can also be used to improver buyer and renter personalization that can lead to more closed deals. Algorithms allow AI to analyze vast amounts of data on user preferences, past behavior, and even financial criteria to present highly tailored suggestions.

Source: Building Design + Construction (04/11/24) Booth, Kenneth

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