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AI in Real Estate

In a constantly evolving world, Artificial Intelligence (AI) is a technology that has created powerful waves of change. The launch of ChatGPT in November 2022—which gained 100 million users by January 2023 and became the fastest-growing consumer application of the time—gave traction to the development of AI. Fast forwarding to today, millions of people are using AI everyday, leading a paradigm shift in the way of working across all sectors, including the AEC (Architecture, Engineering and Construction) industry.

This rapid development has raised several important questions. What is the relation between real estate and AI? What is AI architecture design and why is it becoming common? How can AI in real estate help change the industry? Read on as we attempt to answer these questions.

What is Artificial Intelligence (AI)?

In a literal sense, Artificial Intelligence means the intelligence of machines or softwares. Covering a broad range of technologies like Machine Learning (ML), it refers to computer systems that can perform tasks that typically require human intelligence such as learning, problem-solving and interpretation.

How is Artificial Intelligence (AI) in Real Estate Used Today?

The real estate industry is rapidly evolving to integrate AI into its processes to optimise working. New softwares and AI technologies are persistently finding their way into architecture and construction offices to perform a wide range of tasks ranging from pre-construction to post-construction processes. Some of these tasks and ways in which AI is used are explained below.

AI in Pre-Construction Processes

This refers to processes that occur before the actual construction of a building, such as site studies, digital surveys, soil testing and design. AI-optimised workflows provide precise and reliable data for beginning construction.

  • Site Analysis and Mass Studies

AI tools like Autodesk Forma, Scape and Cogniac help extract information on climatic, geographical, historical and infrastructural contexts of specific sites. The data is even produced in 3-D forms, which provides major aid in the planning process. These tools are especially beneficial for sites with tricky terrain conditions and challenging accessibility, which often require time-consuming and labour-intensive processes for analysis. Having precise and accurate data on site conditions enables architects and designers to make informed decisions for planning and designing built forms while respecting the natural integrity of the site.

  • Generative Design

AI in architecture design is a powerful technology which simplifies the creative process of design. Prompt-based tools like Midjourney and Dall-E 2 generate realistic 3-D images, while Spacemaker and GetFloorPlan are some tools that can generate floor plans. Users input their specific requirements into these tools, which then generate multiple design options within a few seconds for users to choose from. These tools even offer 360 degree tours of the space design generated. Such tools also aid designers visualise their design concepts and communicate them to clients.

  • Augmented Reality (AR) and Virtual Reality (VR)

Multiple architects and designers often face difficulties in explaining their designs to clients. The use of AR and VR tools in the real estate industry help bridge this communication gap. Immersive design experiences allow users to virtually feel spaces before their actual construction, which enables better understanding and simpler correction of errors. Quick adjustments can be made by the designers to suit the requirements of clients, which helps speed up the design process and make it more efficient.

AI During Construction

The use of AI tools in the construction process helps optimise workflows and ensure accuracy in built forms. Here are some ways in which these tools are being used during construction. 

  • 3-D printing and Robotics

A lot of designs that have been deemed as impractical until now due to the difficulty in their construction, can now take physical form with the aid of robotics and 3-D printing in construction. Complex, dynamic and fluid forms can be created with these technologies, enabling increased freedom in design combined with the speed and ease of automated construction. While such technology may be more expensive, it eliminates the need and dependency on manual labour, whose skills may not be adequate for certain types of construction.

  • Project Construction and Management

AI tools like Procore, OpenSpace and Rhumbix provide project cost forecasting and labour and resource management. They also include real-time surveillance and risk analysis, which help in enhancing productivity, safety and security. Automated documentation of the construction process minimises errors and cost overruns, and also aids in minimising the need for humans in monotonous administrative processes. 

AI in Post-Construction Processes

Post-construction processes are those which occur once the building is handed over to its users and occupied permanently. AI tools help mitigate problems faced by users after occupation. 

  • Building Energy Management (BEM)

LadyBug Tools and EnergyPlus are some AI tools that can generate energy assessment data based on multiple factors like climate, building orientation and material usage. These then propose improvements to ensure efficiency in usage of energy and water and management of other resources like waste. Implementing the proposed changes can assist in creating greener and more sustainable building operation systems.

  • Marketing

AI tools like Natural Language Processing Technology (NLPT) help connect sellers with prospective buyers by filtering out unnecessary leads. AI chatbots are virtual assistants that can ascertain requirements of users and guide them to appropriate pages or websites for buying property. Customised ads based on user data and browsing trends are also another AI feature for enhanced marketing. 

  • Property Valuation and Recommendation

AI tools can generate current and future values of properties by examining various factors of the area such as infrastructure, crime records and recreational facilities. These help property owners in obtaining faster and more accurate valuations for property sale. Prospective buyers are also diverted to these sites with customised recommendations.

  • Building/ Home Automation

‘Smart Homes’ in the real estate industry today is a commonly used terminology. Such homes are assisted by AI tools like Amazon Alexa and Home Assistant, which streamline day-to-day household activities. Building or home automation technology consists of a network of interconnected devices that generally respond to voice commands or biometric sensors. Electrical fittings, gates and doors along with security devices such as locks and cameras are often automated to ensure building/ home safety and security along with comfort and convenience. 

The Future of Artificial Intelligence (AI) in Real Estate

The possibilities of AI currently seem endless, with new innovative AI technologies being developed every day. These tools and technologies have extensive benefits and advantages over typical construction in the real estate industry. Infinite design and execution possibilities make AI a powerful creation that— when integrated with construction processes— can transform the real estate industry of the future. It can lead to the creation of workflows and spaces that forever define the way of people’s living and thus is an integral tool to be incorporated into the industry.