Author : Pratik Jain, CEO and Founder, The Stallions
AI or artificial intelligence stands for the process of simulation of human intelligence by machines. AI systems function by ingesting huge amounts of labelled training data, analysing and processing the data for patterns and correlations, and using these patterns to make predictions and recommendations about future states.
AI, nowadays, is used in most sectors and all walks of life and real estate is no exception. Infact, the real estate sector was quick to adapt, industry leaders and decision-makers realized the tangible benefits of the application of AI in the initial phase. Right from how services and products are sold to how consumers decide to who the consumers are and what is it that the Demand is for, now is assessed by use of AI. The transformation is such that most real estate functions, including lead generation, house recommendations, content marketing, property analysis, future evaluation, property management and virtual tours, depend on AI. A report conducted a few years back also indicated that the use of artificial intelligence in global real estate can grow upto 10 times from 2017-2024.
Let’s discuss in detail how AI is changing the way real estate sector functioned:
Identification of Demand: AI-enabled data analysis tools, help us identifying what product is selling more and what if it that the consumer is looking to buy. This helps the developer and marketing teams to ensure that the right product is planned ensuring high volume sales to support the project.
Enhanced lead generation and marketing: AI-enabled marketing apps help in identifying the right target audience. AI also gives detailed understanding of the lead generation patterns and the most efficient platforms to market. All of this helps in marketing the project efficiently resulting is higher result at low spends. Similarly, by utilizing a self-learning AI algorithm on a listing website, it can generate recommendations based on customer preferences such as past purchases, views of specific properties, and search filters.
Novel ways of providing information to buyers: Contrary to the conventional way of capturing lead and sending out information, now one posts an advertisement with a link that straight away directs the buyer to a chatbot ready to solve their queries. Along with availing immediate assistance, one can also subscribe to the chatbot’s newsletter that keeps them posted about all information regarding new listings.
Market Value Predictions: AI possesses the ability to analyse and scrutinize vast volumes of data. AI algorithms can combine several factors like current market price and increase in rates of the area in past years, and make reasonable predictions regarding future value.
In-depth information about the property: AI-powered software can provide apt and all-inclusive information to buyers. There are applications that offer information like the review of nearby schools and clinics, statistics about local transportation systems, information about recreational and entertainment activities in the area and even parking space availability and prices.
Property recommendation: Now, real-time product recommendation engines are becoming more and more popular, and these AI enabled services provide tailored search results based on real-time analysis and customization funnels.
AI’s contribution towards attracting buyers and enhancing sales: AI driven tools identify the right kind of audiences and reach out to them accurately by analysing their demographics and behaviour. AI also aids intelligent sales management by offering suitable tools that help in identifying prospects through machine learning. It captures the right data points and also drives the buyer to take the decision through remarketing.
Artificial intelligence has brought a new era of efficiency and accuracy, even though there are no predictions as to where it will lead the market, it certainly is going to help the consumers in making a well-informed choice and getting more and more value for the developers by making their marketing spends more efficient.
