According to McKinseyGenAI has the potential to completely transform the real estate industry. This could generate between Worth $110 billion to $180 billion in the years to come. Despite this, many organizations are still unsure how to get the most out of artificial intelligence.
In today’s article, I will discuss the use cases of generative AI in real estate. I hope you can implement at least some of these in your business.
10 Use Cases of GenAI for Real Estate
There are many ways that AI can improve the functioning of businesses involved in property management. Now let’s look at some use cases of GenAI in real estate.
1. Generate property descriptions
This is arguably the most popular example of AI in real estate. Instead of spending hours writing descriptions for each property, you “feed” a GenAI tool with all the key information such as:
- location
- exterior color
- number of rooms
- type (residential, commercial)
- price, etc.
In addition to this, you can also specify the tone of voice, text length, and preferred content format. It helps save time and money, because generating descriptions for dozens or hundreds of properties is no longer a challenge.
That said, there is also another way to generate descriptions, which doesn’t require writing detailed prompts. We then discuss it.
2. Creating Property Descriptions from Images
Generative AI tools come with computer vision capabilities, that is, they can analyze photos of the property and create a description based on what he “sees”. Things like exterior and interior colors, closest surroundings, and number of floors above ground will all be considered. Real estate professionals should only provide information that cannot be derived from the image, such as year of construction, location or type of heating.
3. Find the right keywords for visual search
Given that artificial intelligence software can describe images so well, it’s no surprise that it can also suggest suitable keywords to improve visibility. You can then use these terms not only in the description, but also in the “alt text” image. This will help potential buyers find your property while performing a visual search on Google.
4. Creating AI-Driven Visualizations
Sometimes seeing an empty apartment isn’t enough. Some people need more convincing to decide whether or not they see themselves living in an apartment/house. A real estate agent can use GenAI tools to create property visualizations – they can select modern furniture, cherry wood floors, and more. See how a cold and empty apartment turns into a cozy home can accelerate the decision-making process.
Later, this data can be fed back into a model that will be able to predict the type of finishes and furniture that will most appeal to different customer segments. As a result, this will improve the conversion rate from prospect to rental or sale.
5. Generate consistent, engaging social media copy at scale
Another use of AI in real estate is to generate copy on social media. People search for properties online, this includes both Google search and social media platforms. After preparing your real estate ads, you will need to come up with text to promote them on different social channels.
Naturally, the more properties you own, the more posts you will need to prepare. This may take some time unless you use a GenAI tool. This can help you create attractive copy around your property. The more details you provide, the better the result: share who you are targeting, what tone of voice to use, how long the copy should be, etc.
6. Improve customer support
GenAI also supports real estate companies in their daily operations such as customer interactions. A chatbot can be trained to answer common questions to potential buyers. If you rent a property, you can also automate work on simple resident requests, like maintenance. Instead of calling the building administrator and forwarding the tenant’s queries, you could have the AI tool forward them directly to the maintenance team. This way, your customer-facing teams will have more time for other types of tasks.
7. Support asset managers in real estate analysis and operations
Asset managers can use GenAI to collect and analyze property-level data, including sales records, rental prices, property characteristics, and market trends, to run the business more effectively . The data will be useful during forecasting and budgeting. They can also consider using GenAI for leasing, ESG reporting, investment planning and risk identification.
8. Assistance with acquisitions
When you use an internet-connected GenAI tool, you can also have it help you find properties and land that you could acquire or represent as an agent. As it performs well at large-scale research and analysis, acquisition teams can also use it to run financial simulations and help create real estate development timelines.
9. Finance and accounting
In addition to finding and selling properties, running a real estate agency means:
- perform risk and compliance assessments
- prepare financial reports
- forecast
- fraud detection, etc.
All of these processes can be streamlined with GenAI. Currently, tasks such as invoicing and payments have already been automated to some extent, but by using AI you can optimize and improve them further.
10. Improve relationships with real estate investors
I mentioned that GenAI can strengthen customer relationships, but the same can be said for investor relationships. This can not only help you target the right investors but also maintain good relationships with them.
How so? You can turn to GenAI to create marketing materials, including investor presentations, and use a chatbot to quickly answer any investor questions.
Key considerations for implementing GenAI
To fully benefit from AI in real estate, organizations must have access to IT capabilities that go beyond the “standard” technology skill set of companies in the industry. Fortunately, this doesn’t mean they have to hire a dozen developers but rather a few engineers and designers specializing in AI.
Before deciding on any implementation, managers must take into account their customers and the specificities of their market. A commercial real estate company may own and operate thousands of properties around the world and need solutions that support tenant relationship management.
Meanwhile, a local real estate agency that focuses on selling residential properties may only need a chatbot and description generator to support its support and marketing teams.
To get the most out of the AI generation, leaders must be willing to challenge the current way the industry operates and its hierarchies.
As well as accepting the fact that they need to add a new layer of technology throughout their organization. Policymakers must lead by example if they want to ensure widespread adoption of AI.
An example of a RE and CRE company already leveraging GenAI
JLL
To support its customers, JLL introduced a new AI-based occupancy management method that helps tenants better analyze office space utilization. As stated on their site, they are helping one of their Fortune 500 clients understand:
- which parts of the office are underutilized
- how many workers come to the office, on average
- monitor demand for office spaces like conference rooms.
This is part of JLL’s broader AI-driven dynamic occupancy management platform, which helps building tenants optimize the use of their office spaces and adapt to hybrid working models.
GenAI use cases in real estate – making the most of the latest advances in AI
If you use GenAI correctly, it will help you completely transform your business operations. Creating attractive property listings at scale, automating tenant inquiries and driving real estate acquisitions are just some of the ways it supports productivity across the organization.
To get the most out of AI, real estate companies need to create strategies that will help them balance the risks and rewards of using AI-based tools.