AI solutions help optimise business processes and boost property profits
It is difficult to imagine modern business processes without innovative solutions. They help to simplify operations and increase efficiency in all areas. Implementing AI allows you to get high profits from real estate by automating many tasks.
Artificial intelligence solutions in today’s marketplace mostly:
– collect and analyse data;
– research and forecasting industry trends and consumer behaviour;
– optimise processes;
– automate routine tasks;
– liaise with customers;
– manage a range of operations.
Systems designed specifically for the property market can significantly improve efficiency. Underwriting, or risk assessment, is a prime example. In its traditional form, this process requires considerable specialist effort and time. Modern programmes do the tedious work for you. They analyse huge amounts of data and quickly identify potential risks with a high degree of accuracy.
Industry statistics on AI products for property profits
As the figures show, the integration of innovative solutions in real estate is rapidly gaining momentum. According to BRC, the market situation for AI products for real estate is as follows:
– the value of the sector in 2023 was around US$165 billion;
– analysts forecast it to reach around US$227bn in 2024;
– the compound annual growth rate to 2033 will be 34%;
– the market will reach US$731 billion by 2033.
Nevertheless, it’s hard to overstate the benefits of AI for the property industry. McKinsey estimates that generative models alone will add up to US$189 billion in value to the market.
How AI is helping to increase profitability in the sector
AI-based systems are helping to increase profitability in real estate by optimising several key areas. One of these is pricing, where automated valuation models are in use. In this case, software programmes analyse various parameters to generate the value of properties. AI considers general trends, country-level economics, regional specifics and other information. This approach enables the development of optimal pricing models for all market participants.
Another area is property management. This involves many tasks, such as finding tenants, communicating with them and drawing up contracts. There are AI solutions that take over several processes. They independently search for and select tenants, check their reliability and monitor compliance with the contract terms. In addition, such systems automatically send invoices for payment and monitor their fulfilment. Chatbots are also a valuable tool for communicating with current and potential tenants.
The stability of the property market depends on many factors, so it is essential to forecast trends and potential costs in advance. AI-based predictive models are the ideal solution. They can predict price fluctuations and the likely level of profitability for different types of property. They also estimate future demand based on the economic and political environment. It allows investors to more effectively build an investment portfolio and assess the risks to their capital.