The Real Estate Industry is Becoming More Efficient, Profitable, and Service-Oriented, all Thanks to AI
Arun Kumar • April 14, 2021
Share This Article
Leveraging data and creating value from it is the new goldmine in the real estate sector. There is much more data available today than there was even just a few years ago. Information such as net effective rents, leasing spreads, lease comps, market demand, and tenant information has now become much more accessible. In addition, alternative datasets from IoT sensors, social media, geospatial information, and satellite imagery are increasingly being used for smart building design and maintenance.
Where large amounts of data are involved, implementing AI can streamline and transform operations. AI has the potential to impact the sector at every level, from development to sales and management of properties. Most seen use cases are:
Predictive analytics combined with other analytics and data to make more intelligent investment decisions. Ex- Scenario and Sensitivity analysis to analyze a property’s financial and operational performance to make the most reasonable real estate investment decision.
The real-time tracking and automated reporting using artificial intelligence helps investors automate the entire real estate investment process.
Process automation in property management to lower costs associated with commercial real estate. Ex- energy efficiency upgrades.
Predictive maintenance and building system controls to optimize building operations.
Augmenting broker’s labor with property search analytics to improve matching between prospective buyers and desirable properties to personalize the customer experience and interactions with your digital products.
Spatial analysis to Maximize the value of existing space and minimize the need for new space for better modelling of corporate, personal, and commercial spaces.
The use of AI in corporate real estate makes sure that the expensive decisions are data-driven and unbiased. It also augments the current market with different tools which would speed up the process and improve the customer experience.
Challenges Faced by The Real Estate Sector to Leverage AI and Advanced Data Analytics
According to the Morgan Stanley Digitization Index, real estate is the second least digitized industry in the world.
Real estate’s main barrier is onboarding the technology.
Not enough data for advanced analytics as most of the existing data is not in digital format.
Although real estate companies are notably progressing towards better data sets, most of the accumulated data remains siloed and lacks standardization.
Collaboration is also a major factor, as sharing appropriate data sets within the community/group is essential.
Current process inefficiencies prevent from exploring new sources of data and in-depth analytical tools and capabilities.
Brillio has partnered with multiple businesses in the real estate industry and helped them reap the benefits of enterprise transformation as per trending industry opportunities.
Our Solution Guiding Principles
Image Analysis & Interactive Maps: Location as the connective thread to uncover hidden patterns. Image analysis to detect change over time. Interactive maps to visualize and to understand the data to make planning/ investment decisions based on crowding/peak hours.
Effective Resource Allocation: Using actionable insights to allocate resources as per time & footfall for building facility management/maintenance
Predictive Modelling: Predictive analytics to make ideal decisions on the investment /planning
Data Consolidation: Data from different sources is consolidated & standardized for generating insights.
Secure by Design: Secure by design and wired with the right telemetry to ensure seamless access for devices and data.
By leveraging our solution principles, coupled with our product-centric delivery approach, and pre-built proven frameworks and accelerators, we have been able to build new-age solutions for the industry around some of the most pressing pain points.
AI and Data Analytics for Advanced Property Analysis
AI allows property owners/investors to perform analysis on how they need to invest in their buildings, what they can invest in, and, ultimately, what are their returns.
Marketplace data, CRM, as well as public information such as transportation network characteristics, crime rates, schools, and buying trends, are gathered to get insights on the optimal price for purchase/sale, the ideal time to sell/buy, risk management, and portfolio optimization.
In this case, AI unlocks the possibility to gather and analyze data more efficiently, and find the most unusual property price-influencing factors, hidden non-linear relationships between data and property desirability, and the major sources of risk like asset level, macroeconomics, the regulatory framework, etc.
Data points analyzed for advanced property valuation:
Smarter Real Estate Management
Automation of building operations management process provides an opportunity to lower the operations/maintenance cost.
Data is gathered from various sources including Wi-Fi and IoT sensors, and then analyzed by an AI algorithm and turned into valuable insights. These insights offer machine learning-based controls for HVAC, lighting control, energy management, building maintenance, occupant tracking, acoustic settings to reduce operating costs, enhance the occupant’s experience, and improve workplace productivity.
Automated workflow for operations management:
Spatial analysis using all relevant data provides actionable insights on space optimization for better building planning/remodeling.
Spatial analysis of employee data, teamwise details, footfall vs timings, common area usage, etc. are used to gain insights and optimize the space usage, maximize the existing space value, and minimize the need for extra space.
Major data points for spatial analysis:
AI might seem like a threat to many agents and brokers in the real estate sector but if used in the right way, it can augment their skills and take the whole customer experience to a new level. AI still has many use cases to be explored and the technology is certainly going to grow extensively in the real estate sector.
As a Senior Innovation Architect at Brillio, Arun brings 11+ years of experience in enabling digital transformation for clients across multiple verticals by innovating, ideating, and developing next-gen products.