The debate about how much of a role Artificial Intelligence (AI) will play in our lives is essentially over. AI is here to stay and will play a significant role in every facet of daily living and business, including real estate.
The AI industry is poised for major growth soon. According to reports, the global AI market size is estimated to reach an impressive $1.8 billion by 2030. The adoption of AI technology is rapidly increasing across all industries, including healthcare, finance, retail, transportation, and real estate.
In terms of real estate, AI encompasses a full spectrum of technologies deployed to spot the most profitable investment opportunities in the market. It is changing the way real estate investment strategies are developed and executed. It will provide investors with more data-driven insights and analysis, a development we see already going on for some time now and which will accelerate.
Possible impact of AI on strategies
Here are just some ways AI may impact real estate investment strategies:
Predictive Analytics: AI-powered predictive analytics can help investors identify potential opportunities and risks in the market by analysing large volumes of data. This includes analysis of trends in property prices, rental rates, vacancy rates, and demographic data to identify areas with high growth potential.
Portfolio Optimisation: AI can optimise investor’s real estate portfolios by analysing property performance data, market trends, and investor objectives. The advanced technology can suggest portfolio adjustments to improve returns, identify the best mix of investments, reduce risk, and maintain diversification.
