The real estate industry is making a tremendous transformation with the help of AI software as compared with traditional ways. AI applications have been excessively used, not only for improving customers’ experience but at the same time generating revenues.
According to McKinsey and Company, generative AI has the potential to generate $2.6 to $4.4 trillion in value across various industries. In the same way, AI Real Estate is also gaining popularity. But first, let’s understand what is Artificial intelligence in real estate.
What is Artificial Intelligence for the Real Estate?
Imagine finding the perfect home with the perfect lighting, best views, and a layout that speaks to your comfort and taste. Sounds fascinating right? AI-powered real estate software with AI tools can make this dream-like situation a reality in a few clicks. AI for Real Estate can help analyze market trends, your search patterns, preferences, and property features in real-time to recommend the perfect home for you!
AI in real estate has made quite a few developments in this industry in the last few years. But with each new day, AI keeps improving the whole buying, selling, and managing the property experience along with many other things.
According to a report of Precedence Research, there is substantial opportunity for this industry due to AI in real estate use cases. The real estate market is projected to grow by $1302.12 million by 2034 at a CAGR of 11.52% between 2024 to 2034.
The impact of AI in the real estate industry can be seen across different use cases. From personalized customer experience, fraud prevention, and lead generation to effective decision-making, AI has shown its promise in all aspects.
Now that we have established the popularity and demand of AI real estate solutions, let’s dive into the 12 Key Applications of Artificial Intelligence in Real Estate and its use cases in the real world.
12 Key Applications of Artificial Intelligence in Real Estate
It all started in the year 2000 when FAQ chatbots were less used than today, when for the first time AI was integrated with real estate.
For example, an Australian agency that built an AI-powered property valuation tool PropTrack was the first player known for developing AI tools in 2018.
AI is redesigning the whole real estate industry in many profound ways. Let’s see 12 Applications of generative AI in real estate.
AI-assisted Chatbots
AI in customer service has to be one the first few ways AI gained popularity across all industries. This innovation of AI-driven chatbot has not only reduced human efforts but also made it easy for all customers to make quick decisions. AI-assisted chatbots specifically made for real estate can do certain augmented tasks like handling inquiries, buying, selling, scheduling an appointment, or providing any real-time information.
Listing Description
A listing description is for attracting potential buyers by putting a compelling description that contains the amenities, location, size, and other aspects of the property. Such descriptions are very tedious to create manually for each buyer. But with the help of Generative AI solutions like ChatGPT or Gemini, it can be created in seconds.
Fraud Prevention
AI can prevent any violations of the Fair Housing Act, helping professionals avoid penalties. This will ensure that transparency can be maintained, and all the legal standards are followed.
Any manipulation in the images or listing description can be detected with the help of AI real estate software like Proof, Resistant AI, and Focal, protecting both the buyers and sellers.
Lease Management
Managing a lease is a hassle from drafting the documents to tracking the dues and ensuring compliance. All these if done manually would be a time-consuming job. But with AI software development services, such things are quickly done without fail. These systems help in generating, reviewing, and monitoring the lease document and making sure that all guidelines are being followed.
Virtual Property Tours
With the help of AR and VR, one can get virtual tours of a place even before stepping into it. A few years back it was just an augmented thought, but with the help of Artificial intelligence and real estate software, it is possible. This way it becomes quite convincing for buyers to make a decision. This innovation is a great help, particularly to that property located abroad or still being constructed.
Zillow is one of the most prominent real estate websites that introduced 3D Home Tours for the listers to showcase their house in a truer and more engaging light. They reported a 49% rise in inquiry rates for properties that used this feature. If you want to build a real estate website like Zillow, you need to leverage reliable AI software development services from a reputed real estate software development company.
Virtually staging
Virtual staging means digitally decorating and furnishing the property so that it can look appealing to potential buyers. This way the buyers can make quick decisions and also the listing becomes attractive for potential purchase without having to physically stage the property which would take more time and money. Virtual staging shortens the time of property on listing and increases the number of inquiries.
Lead Generation
Lead generation is the soul of real estate. With the help of artificial intelligence, leads could be generated through various platforms like website visits, social media, landing pages, email marketing, online property portals and much more. This helps the sales representative to focus on qualified leads that have chances of conversion.
This is all being done with the help of machine learning algorithms which analyze large datasets, and identify the right potential buyers. So, businesses can reach out to them with personalized messages and offers.
Searching for Property
Earlier it was a tedious job to do property searches of our liking. But with AI real estate systems it becomes easy to find a property of interest with the help of personalized recommendations, and extra filters. Such tools analyze the data and give customized property recommendations, for locations, amenities, budgets, etc. PropEx.ai is an expert real estate AI for the buying and selling of all kinds of properties.
Tenant Behavioural Analysis
By looking at various social platform activities, rental habits, and payment history of tenants AI is able to predict reliability and satisfaction levels. This will help the landlord to save themself from probable fraud and maintain the long-term relationship. Understanding tenant behavior is very important for property management.
Management of Smart Property
Smart property management is managing property with the help of technology like IoT, smart devices, and real estate software solutions. This streamlines the whole process between the buyers and real estate agents. Enhancing overall tenant experience, improving operational efficiency, and regularizing payment along with saving time for buyers and real estate agents.
Predictive Analytics for Real Estate Firms
Real estate agents use AI tools to predict market trends, and the future selling prices of property, optimizing rental prices, helping investors make judicious decisions and future planning and urban development. All these large datasets are analyzed and then predicted with the help of AI tools.
Energy Management for Smart Homes
AI in homes are powered by AI tools like Nest and Ecobee are used for the adjustment of heating and cooling of smart homes according to the occupancy and temperature of the rooms. This leads to energy consumption and savings of individual appliances which results in reduced costs and promotes sustainability. It helps in creating net zero energy consumption homes.
What are the Use Cases of Artificial Intelligence in Real Estate?
Valuation model
Models like automated valuation utilize statistical techniques, and mathematical models to evaluate the value of the property at present as well as for the future. The key advantage is that AVM (Automated Valuation Model) with the help of machine learning algorithms can assess the property even without the need to be on-site. This will save a lot of time and cost. With a median error rate of just 2.4%, Zillow helps in making informed decisions.
Planning of Interior designs
When such deep learning algorithms are used for architectural planning they can be used in interior designing as well. AR, VR, and 3D models help analyze the dimensions of the room, layout, design, and the color, and placement of furniture.
Site Monitoring
Construction sites are the most accident-prone. AI Tools will help in continuous monitoring of all the worker’s safety. So that less number of workers get in trouble and ensure safety measures. And making sure that workers are wearing safety gadgets and gear.
What is the Future of AI in Real Estate 2025 and Beyond
Apart from all the smart homes and smart buildings, we can expect many more innovations in AI tools for real estate. Think of it before even shifting to a new locality, you already have an idea of what your neighborhood will be like by neighborhood quality life analysis. AI as negotiation assistants will help us with a great deal by analyzing the market trends and making predictions for buyers and sellers.
Besides buyers’ perspective, AI is helping real estate agents read facial expressions, gestures, and overall behavior which will help in better client interactions with a concept called emotions AI. AI for real estate agents will help in predicting the future of a property by looking at historical data and market trends.
Thus helping in predicting the value of a property or the investment. These are the augmented thoughts some of them are already in the process of making and many will be in the future. With the rise of AI across all sectors, if you want to leverage this technology for your next venture, you can look at some of the best AI business ideas.
How CMARIX can Help you in Developing Real Estate Software Solutions?
We have an expert team in developing AI, ML, and deep learning software, with a decade of experience in developing AI-powered applications for the real estate industry.
CMARIX, is the perfect pick for your next project, delivering smart software solutions for real estate tailored to your business needs. Our goal is to provide exceptional services while keeping your objectives in mind. We offer numerous additional benefits to clients who leverage our real estate app development expertise. Hire dedicated developers from CMARIX and take advantage of our industry-leading expertise and experience.
Final Words
AI is no longer an extended thought in real estate, but a reality now. From AI-assisted chatbots to energy management, the 12 applications have explored how AI is transforming the whole real estate industry making it more real estate advisor friendly and customer support. There is huge potential in the future for AI in real estate. With the help of use cases, you must have an idea of how important a role AI plays in real estate.
FAQs on AI for Real Estate Industry
How to use AI in real estate?
AI in real estate can be used in numerous ways in neighborhood analysis for a better idea about neighbors even before one starts living. Prediction of the market demand for certain properties by looking at past data. Fraud prevention and detection so that the buyers don’t get exploited.
How can I use AI in my real estate business?
According to the needs of your business, you can use AI in various ways like using a chatbot for customer support, lead-generation AI tools for qualified leads and AI-based marketing for your real estate business, so that personalized content can attract more buyers.
What are some examples of AI in real estate?
There are quite a few AI tools that facilitate buyers and sellers as below:
Tourwizards– A tool used for personalized AI virtual interactive tours with music.
Reonomy– This analyzes the real estate data and identifies if there are any investment opportunities.
Tenantcloud– Where you can do a background check of tenants, basically a reliability check for all the landlords.
Adfenix– This is for all the personalized content used for marketing purposes so that the right target market can be reached.
Can AI generate leads in real estate?
Yes, AI-driven lead generation is possible by proper analysis of certain factors like demographics, income level, preferences, etc. AI will automate tasks like follow-up tasks and email campaigns. So, real estate agents need to just focus on qualified leads.
