PropTech Today: Putting the AI into reAI estate

The total value of the UK residential housing market is now worth £8.67 trillion, according to Savills, with the value of the UK commercial real estate market estimated at around £1.1 trillion.

There has also been a significant growth of the rental property market in recent years, driven by post-pandemic lifestyle changes and affordability issues.

With estate agents being kept busier than ever, custom software has never been more important for this fast-paced, turbulent industry and generative AI is opening up a whole new world of possibilities.

The current picture

Custom software is commonly used across all aspects of the real estate industry, from real time property auctions, with up-to 5,000 active users on sale days, to intuitive rental management portals, to compliant conveyancing software that integrates seamlessly with external suppliers, like legal teams, insurers and surveyors.

The integration of generative AI in PropTech is a growing trend. Some already use AI and machine learning for basic purposes like predictive analytics, data insights, and automation but future developments are set to see more widespread use of generative AI in areas such as personalised client interactions, automated content creation and advanced data insights.
AI-powered software has the potential to make things happen faster, provide deeper insights and enhance the customer experience. For real estate businesses, there is no end to the opportunities AI could bring.

Lead generation and management

AI can analyse large volumes of data to identify and prioritise promising leads, ensuring agents focus efforts on high-potential clients. What’s more, it can bring predictive analysis of leads that are most likely to convert, helping agents tailor their strategies and improve conversion rates.

Property valuation

Automated Valuation Models (AVMs) are AI algorithms that can quickly and accurately estimate property values by analysing comparable sales, market trends and property characteristics. AI can also provide real-time market insights, helping agents and investors make informed decisions.

Customer relationship management (CRM)

AI-powered CRMs can automate and personalise communication with clients, sending tailored messages based on their preferences and behaviours. AI chatbots and virtual assistants can handle initial inquiries, schedule appointments, and provide instant responses to common questions. Although this must be handled with care because relationships and human contact are the beating heart of the real estate industry.

Property management

When it comes to maintenance, AI can predict when issues are likely to occur, allowing property managers to address them proactively. It can also be used for tenant screening, analysing rental applications, credit scores, and background checks.

Marketing and advertising

AI can analyse data to create highly targeted advertising campaigns, reaching the right audience with properties that are just right for them. Generative AI can also be used as a tool to create marketing content such as property descriptions, blog posts, and social media updates, saving time for agents. This must always be carried out under the careful eye of an experienced agent to avoid irrelevant content and repetitive language.

Transaction management

AI can automate the generation and management of contracts, forms, and other documents, reducing paperwork and the risk of errors, as well as streamlining the signing process and ensuring compliance with legal and regulatory requirements.

Generative AI can provide huge advantages to homebuyers too.

The technology can provide personalised property recommendations based on a buyer’s preferences, search history, and behaviour. AI-powered virtual tours and 3D visualisations also allow them to explore properties remotely, providing a more immersive experience.

AI can help buyers make informed decisions about where and when to buy with real-time market data and trends. It may even predict future property values, giving buyers insights into potential returns. Suitable mortgage options can also be recommended using AI by analysing a buyer’s financial situation, helping them understand their affordability and manage their finances better.

Will AI replace people in the property sector?

Whilst AI has the potential to significantly transform the real estate sector - augmenting and enhancing human capabilities, allowing professionals to work more efficiently and effectively by handling many technical and repetitive tasks - it is unlikely to completely replace humans.

Real estate is a relationship-driven business, requiring human judgment, experience and intuition. Building trust and rapport with clients is essential and the interpersonal skills and persuasive abilities of humans are difficult for AI to mimic. Buying or selling a home is an emotional process for many people, with agents often providing empathy, understanding, and reassurance, which as it stands, cannot be replicated by AI.

Professional estate agents have in-depth knowledge of local markets and communities. They understand the nuances of different neighbourhoods, schools, amenities, and local regulations. As such, agents can provide context about market trends and property histories that AI might miss.

The UK real estate industry is undergoing significant changes, driven by evolving technology, consumer preferences, and market dynamics. Custom software and exciting developments in AI are key to the growth and success of the sector.”