Artificial Intelligence is set to become a major tool that will be actively adopted for property valuation, trend analysis, and price forecasting.
The idea of AI (Artificial Intelligence) has existed over the last 60 years, often oscillating between periods of high market expectations and stretched dull periods with no concrete developments. However, in current times, AI is no longer just a buzzword and has started making inroads in our daily lives. From search engine recommendations to targeted advertisements, from virtual assistant apps to chatbots, AI is sneaking into our lives.
It is going to stay and most probably will make waves in our worlds in the coming times. Naturally, AI has started entering the real estate industry as well. Quietly, industry leaders are now spending time on how AI and machine learning can be used to transform Indian real estate.
Clouds: The Foundational Base
The use of cloud-based technologies has already enlightened real estate players about big datasets and deriving data-backed granular insights out of them. Now integrating Big Data with AI and machine learning software can take the game of data analytics to the next level. It can help in the exhaustive but systematic evaluation of a large chunk of probable alternatives and identify the best fit.
Soon, 5G will be deployed which will result in existing internet speeds going up multifold. This will lead to the proliferation of smart devices and machines. Increased devices and machines will mean more data, thereby giving further thrust to AI & machine learning-based predictive models.
AI Can Play a Major Role in Property Markets
AI is set to become a major tool that will be actively adopted for property valuation, trend analysis, and price forecasting. The current cloud-based analyses are restricted to property valuation and prediction based on a few metrics such as property type, carpet area, property price ranges, and location, among other parameters.
However, AI will enable the integration of large pipelines of algorithms with valuable social data such as logistics, social amenities & public utilities, rainfall rates, sunlight availability, automobile intensity, pollution levels, recreational activities in the district, and much more to give a more precise and accurate insight on the property market. This will not just help potential buyers to identify the right property fit but also help brokerage houses and listing agencies to speed up the entire business cycle.
Already in countries like the USA, property advisories such as Zillow, Redfin, Trulia, Compass, etc. are using Big Data-backed AI models to give actionable inputs to buyers. In India, we are using a basic AI-based model. However, the implications of advanced AI & machine learning platforms are trending forward across the industry. Interestingly, with every transaction concluded, the AI platform further evolves thereby setting the ground for faster adoption.
Property management is another significant area wherein the role of AI will be pushed forward. Property managers deal with a multitude of data about tenant profiles, tenant applications, inspection requests, and other inputs. Applying AI can streamline the data process, systematically automate mundane tasks, and lower redundancies, thereby bringing in an unprecedented amount of efficiency.
AI-enabled chatbots will also soon take the industry by storm. It will help brokers and advisories to efficiently converse and engage with multiple clients simultaneously. This will bring in increased efficiency and simplify the overall business cycle. Automated discussion over chatbots will also generate more insights and data that will help realtors finetune their decision-making.
(By Ankit Kansal, Founder & MD, 360 Realtors)