AI and real estate: insights and opportunities for the industry

The real estate industry is facing a turning point, driven by the innovative use of artificial intelligence (AI). This technological advancement not only promises to increase efficiency in familiar processes, but also opens up completely new perspectives for both real estate agents and end customers. The key to these changes lies in the clever use and analysis of large amounts of data, which is made possible by AI applications.

The power of artificial intelligence lies above all in its ability to process, analyze and interpret large volumes of data.

This allows a deep insight into the real estate market and helps to better understand price trends and customer preferences. Such insights are of enormous importance in order to remain competitive in today's fast-moving market environment.

AI implementation - a challenge for real estate companies

Despite the advances and the wide range of possible applications, companies face the challenge of finding the right AI solutions and implementing them successfully. It's not just about using the latest technology, but also about how it can best be integrated into existing processes to achieve real improvements.

For this reason, numerous companies are currently examining and testing which workflows can be simplified and optimized using AI. Number-based industries in particular appear to be able to benefit from the new technology. But how can the industry really exploit this potential and how can real estate companies implement AI profitably?

AI and real estate - what opportunities arise?

In a recently published report, the renowned brokerage firm JLL highlighted the The role of artificial intelligence within the real estate industry particularly prominent. Based on the JLL 2023 Global Real Estate Technology Survey Artificial intelligence is one of the three technologies that will have the greatest impact on the real estate world in the coming years. This assessment not only underlines the importance of AI for the industry, but also serves as a wake-up call for companies that want to remain competitive in this new environment.

Understanding AI in the real estate industry

A comprehensive understanding of AI in the real estate industry requires a breakdown into four functional categories. This categorization helps to understand the wide range of possible applications:

  1. Automating intelligence accelerates and improves standard processes by taking over manual and repetitive tasks.
  2. Supporting intelligence provides decision support for professionals by analyzing and interpreting complex data.
  3. Augmenting intelligence extends human capabilities by providing new insights and analyses that were previously inaccessible.
  4. Autonomous intelligence enables systems to make decisions and carry out actions independently, based on the data collected and predefined goals.

But what does this mean in concrete terms for the real estate industry? First and foremost, it means that both real estate agents and clients can now access tools that were previously unavailable to them. From automatic valuation to more efficient management of real estate portfolios, such as the property exposé.

Artificial intelligence opens the door to a range of possibilities that make real estate more efficient, transparent and accessible.

Enormous potential through AI in the real estate industry

Artificial intelligence (AI) is proving to be a revolutionary advance in the real estate industry, unleashing immense potential.

Status quo of digitization and growth forecast

The current status of digitization, recorded in the ZIA study in cooperation with EY Real Estateshows that 58 percent of real estate companies have reached advanced stages of digitalization, while 37 percent invest more than 5 percent of their annual turnover in digital innovations. With 77 percent of companies seeing AI as a trend with short to medium-term potential, the impact of AI on the industry is becoming increasingly apparent.

Areas of application for AI in the real estate industry

AI is already widely used in the real estate sector. These technologies improve service for customers, increase efficiency and support both sales and the achievement of sustainability goals. The applications so far include

  • Analysis tools for real estate valuation - Use of AI algorithms to analyze market data in order to provide accurate valuations and price forecasts for properties
  • Facility Management - Use of smart home devices and AI to Energy efficiency to optimize maintenance and improve tenant satisfaction.
  • Real estate management - AI-supported systems support tenant selection, rent payment monitoring and maintenance planning, increasing efficiency and reducing administrative effort.
  • Mortgage underwriting - AI analyzes the financial data of potential borrowers in order to assess risks and fair credit conditions to create.
  • Claims settlement - Automated processes for recording and processing claims, which significantly reduces processing time and increases efficiency.
  • Automated communication - Use of chatbots and automated mailboxes to improve communication with tenants and interested parties.
  • Smart contracts - Use of AI to extract and make sense of relevant information from contracts and documents, increasing transaction speeds and reducing workload.
  • Asset Management - AI is used for personalized customer contracts, efficient contract management and intelligent system control.
  • Reduction in search and sorting effort - Artificial intelligence helps with the efficient organization, classification and analysis of large volumes of real estate data. This saves time and improves decision-making. In addition to intelligent document processing, a AI chat with documents possible in real time.
  • Improvement of facility management - AI automates building management processes, leading to earlier detection of problems and more efficient maintenance.
  • Contract management and document review - Faster and more accurate review of documents and contracts through AI, which reduces administrative effort and ensures compliance.

The use of AI simplifies and accelerates processes such as property valuation, contract and document management and customer communication.

Looking to the future - potential vs. status quo

While AI solutions in connection with real estate are gaining ground, we are only at the beginning of a development that is fundamentally transforming the industry. AI makes it possible to identify patterns and correlations from extensive data sets, enabling more precise predictions about possible future developments. Instead of subjective guesswork, decisions are now based on solid, data-driven insights, leading to better informed decisions tailored specifically to the real estate industry.

-> In this context, dive deeper into Berkeley's optimistic outlook on LLMs and complex decision-making processes - read the study here!

Given the enormous potential that AI opens up through efficient data management in the housing industry, it is clear how important the collection, analysis, evaluation and application of this data is for the transformation of internal workflows and services.

This underlines how central the intelligent use of data is for the future of the industry, particularly through the automation of everyday tasks in property management.

One example of the application of these advanced technologies is Konfuzio's AI model for real estate exposés. AI models as solutions exemplify the intelligent and effective data analysis that forms the foundation of today's and tomorrow's real estate market strategies.

Confucius AI marketplace as a pioneer of modern real estate transactions

AI and real estate united on the Konfuzio Marketplace: a platform that shows how the pooling of AI expertise not only enhances data collection, but also how AI is ideally used to create more accurate and engaging real estate exposés that more precisely meet the needs and expectations of customers. Konfuzio's marketplace helps overcome the hurdles of AI implementation and utilize advanced solutions faster and more efficiently.

KI model - Exposé for real estate

The use of an AI solution for processing real estate exposés not only saves lenders time and resources. Agents also optimize their processes for selling and renting properties. Automation significantly reduces the search and sorting effort and simplifies the preparation of transactions. This makes the entire sales and rental process faster and less error-prone.

  • A real estate exposé provides in-depth details about real estate.
  • AI is revolutionizing the processing of this data.
  • The exposé for real estate provides relevant data for a reliable credit assessment.
  • AI is making the lending process more efficient and secure.
  • Konfuzio has trained an AI for document processing of real estate exposés. This is available on the marketplace and ready for use.

This sample document demonstrates the capabilities of the selected real estate AI using the extracted data in the right-hand column:

KI Immobilien AI real estate

With the REST API As an interface, Konfuzio offers the option of importing both pre-edited and post-edited documents into any Workflow integrate. Be it through the automatic uploading of documents received by e-mail or through the post-processing of documents in spreadsheet software such as Excel, Google Sheets, etc.

AI extracts information from real estate documents

In addition to the data extracted from the image example, there are numerous other extractions based on this scheme. Values extracted from the trained real estate AI can be found in the table below, which we have only abridged due to its large size:

LABELDESCRIPTIONTYPEVALUE
Year of manufactureIt tells potential buyers or renters how old the property is and can have an impact on condition and possible renovation needs.Receipt date2019
Available fromThe date from which the apartment or building will be available to the new owner or tenant.Textby arrangement
FloorThe floor in a real estate exposé indicates the level or floor on which the apartment in question is located.Number2
Energy certificate dataThe various information associated with the property's energy performance certificate: The examples: Energy efficiency class, energy certificate type, energy demand, certificate from date.TextConsumption-oriented energy certificate
Energy demandThe energy demand of a house is measured in kilowatt hours (kWh).Text55
Plot areaThe total area of land or property on which a property stands or on which real estate can be developed.Number100
Energy sourceThe type of energy used for heating, cooling, lighting and other energy needs in a building.TextDistrict heating
Purchase priceIt indicates the price at which the property is offered for sale. The purchase price is usually given in the local currency, e.g. in euros or US dollars.Number266.600
Property typeThe property or building type is also an important specification in a real estate exposé and describes the type of property that is being offered for sale or rent.TextCondominiums
Numerous other extractions are possible according to this scheme.

Discover how to efficiently use the Exposé model for real estate and unlock the many use cases where the AI model shines.

-> Create a free user account app.confuzio.com and get access to Konfuzio's real estate AI.

Use case - real estate exposés as a data source for lending

When you think about real estate loans, terms like interest rates, terms and collateral probably come to mind first. But an often overlooked, yet crucial element in the process, are the real estate exposés. These detailed documents, which include features, location, condition and much more information about a property, are not only important for potential buyers. They are also a crucial source of information for banks and other lenders.

The information in the exposé is essential for a lender. It provides a deeper insight into the value and potential of a property, which in turn forms the basis for determining creditworthiness. A well-maintained house in a sought-after area? A lower risk of default than a run-down property in a less popular neighborhood!

Conclusion - How is AI influencing the real estate industry?

The introduction of artificial intelligence (AI) is increasingly transforming the real estate industry - from the Automation to data-supported decision-making. The real estate exposé model demonstrates how AI-supported solutions can make the real estate market more efficient and transparent. Despite the potential of AI, human experts will remain indispensable, albeit supported by AI-supported analyses and process optimization. Real estate professionals must adapt to the change and integrate AI into existing workflows in a meaningful way. Without neglecting data protection and ethical standards.

In short formAI is becoming an indispensable tool in the real estate industry, increasing efficiency and opening up new opportunities. The challenge is to use these technologies effectively without losing sight of the human element.

The future belongs to those who embrace digital change and see AI as an extension of their expertise.

Contact

Do the challenges of AI and real estate sound familiar to you? Get in touch with the experts at Konfuzio and explore your options together. The initial consultation is free of charge and does not commit you to anything:

"
"
Charlotte Goetz Avatar

Latest articles