Artificial intelligence (AI) and Machine Learning (ML) are playing a vital role in every industry, and no doubt they have found their way into the real estate sector too. These two can be used as a tool to perform activities such as appraising properties, analyzing trends, and price predictions.
The ideal price range of the properties is determined by AI and Machine learning models through a regression model which considers a number of factors before arriving at the results. These factors include the following:
- Property size
- Property age
- Number of rooms in the property
- Quality of the property, and
- Macroeconomic demographics
Hence, based on either geography or future development, AI can predict the pricing. As per the research by the University of Oxford, Technology & The Future of Real Estate Investment Management, 53% of real estate corporations directly invested in technology in 2020. There were 56% of Statist respondents were already aware of the impact of the tech industry, while 42% of respondents acknowledged that there is a potential in intelligent building technology.
AI and Machine learning can offer accurate insights into the real estate market by integrating a large number of algorithms with social data like logistics, social and public utilities, rate of rainfall, availability of sunlight, automobile intensity, levels of pollution, and recreational activities in the district, etc.
AI and Machine learning are not just limited to making the process of buying and selling properties simpler, but it has estimated home value more precisely and conveniently, thereby bringing greater transparency all through the purchasing process.
Apart from providing transparency while purchasing homes, AI and ML have also simplified the home searching process for customers by listing houses online and property recommendations.
AI can be very useful to estimate the values of a property and rental rates, and real estate brokers depend on AI for such traits. To generate a value analysis of a specific region, AI may gather information from sources such as public records, crime statistics, alternate routes, and school district estimations.
Using AI in the real estate sector will be helpful in a variety of ways such as efficiency, cost management, transparency, and valuation of assets. AI will change the way of buying and selling properties in the real estate sector, by offering relevant information to the customers transparently.
Transactions in real estate will be automated as well as computerized in the future. Real estate agents can operate at ease, once they become familiar with AI and ML technology and use them to their advantage.
It streamlines the entire process of buying and selling property by transparently giving customers relevant information.
