Authored by Mr. Vipul Shah, Managing Director, Parinee Group
The real estate sector has been a witness to transformation in various processes through technology over time. Artificial Intelligence or AI and Machine Learning or ML have crept into the workings of the real estate business, bringing in a sea change to the landscape. The combination of these technology tools is set to become a disrupter for the sector in the years to come. And while construction is still brick and mortar in that sense the integration of these two technologies has made futuristic predictions for the real estate sector far simpler.
So, what does it really do? AI and ML bring a data-driven approach to the sector making better decision making possible. The use of specific software and algorithms has simplified core processes and improved operational efficiency for the real estate sector. While its use is still nascent and developing, AI and ML tools have simplified hard data analysis and this can be seen in the better investment decisions that developers are able to make for their businesses. Using these tools, the real estate industry has also been able to develop consumer applications. Be it in offering a Chatbots option for a personalised approach, 24/7 availability, quicker reply time, and customer interfaces. These are all based on machine learning-based architecture.
Analytics in building automation systems have also become a possibility due to AI and ML applications. Since it offers deep analysis, these tools reduce the time that the real estate sector would need to physically use the computer to do the same analytical work. Besides, helping reduce the number of errors in data entry, its future prediction abilities is one of the critical benefits to the real estate industry.
Transforming through data
One of the things that ML brings to the table is the ability to learn from the past without any added software programming. AI on the other hand works faster than most superior minds put together when it comes to analysing critical data sets. As they begin to play a lead role in the working dynamic of the real estate business, AI and ML have shown results in improving and speeding up complex decision-making processes. Using data, these technologies that make up a part of PropTech have the capability of collecting tons of information, analysing it efficiently, and then swiftly producing learnings from it. This ability promises better strategy, work efficiency, and effectiveness. AI and ML have brought in a working culture that makes buying and selling land for instance a research-backed action offering lesser uncertainty.
The real estate industry by using these new-age tools is able to gauge customer preferences using a mix of data – historical and real-time and behavioural analytics. The algorithm can map buying patterns of customers and tell developers what a customer might seek in the future. Called predictive analytics, these tools have given marketers the opportunity to know client choices and accordingly deliver to the needs even before they realise it. Developers are able to offer unique property recommendations to their customers through a personalised approach only by putting across relevant content in a tailor-made fashion. Sending the right message, at the right time is made possible using the customer behaviour data analysed by these tools.
Influencing Real Estate
Since we have seen how these tools are transforming real estate as a sector, let us understand what future potential it can offer. The pandemic proved to be a point where many in the business made a switch to AI and ML learning tools. As physical meetings were not recommended but there were people looking to invest, the use of these technologies came in handy. They came in various forms from online catalogues and property tours using virtual reality (VR) to even transactions moving online were seen. The pandemic phase became a period where many began to use technology. Players have begun to see the future of their real estate businesses, with AI and ML tools taking care of their long-term goals. To cite an example for a developer, these tools can help in identifying land, suggest the right mix of projects to develop, market it to the right set of people based on their choice using personalised channels and even make an early projection of sales and revenue. All this leads to smarter business and residential or commercial premises that customers are willing to pay for.
With its benefits immense and applications wider than in use today, tech-driven real estate is the future. It holds the key to combining a world of data and algorithms with decision-making processes. The results of this only mean that AI and ML-driven efficient information management is what will power the real estate industry in the coming days.