2023-07-21
Artificial Intelligence & Luxury Real Estate: the next frontier
The internet is fond of buzzwords. Referring to Gartner’s Hype cycle, one could say that the Artificial Intelligence tag locates you at the famous Peak of Inflated Expectations, where NFT, Bitcoins and Metaverse recently hit their top before vanishing in the mist of useless or unusable enough technologies.
But AI is something else. Of course every one has heard about Chat GPT and its multiple iterations are actually changing the game in many ways and many domains.
But can it really impact real estate? As you may have read in a previous article, new luxury real estate owners are quite keen on technology. But we are taking buildings and homes, bricks and mortar here, how could AI be at use?
That’s what we wanted to know and here are the results of our investigations.
AI enhances real estate analytics and forecasting
Investors can use AI to evaluate pricing strategies for their sales. They also can anticipate new market segments suitable for investments. Fact is major real estate marketplaces now use predictive analytics AI to estimate prices trends and margins, placing them the a step ahead from the concurrency.
On top of that, AI might be able to determine the precise timing of potential care needs. Restoration, check ups and maintenance costs might find themselves reduces. Theoretically, AI could even plan out the work itself. For landlords who have a number of properties to handle, this will be especially helpful. AI is used by businesses to automate production procedures, forecast profits and losses, and schedule necessary maintenance.
Lots of startups are actually lining up on these issues around the world.
Marketing and lead generation
without using agressive marketing strategies that more and more people reject, personalised content and real time statistics allow luxury properties owners and agencies to aim at targeted customers. They can also find new opportunities to expand they portfolio, should they have one.
Real Estate witnesses the birth of digital twin
Digital twin was a buzzword once. Now it’s a mere reality. Lidars and very HQ cameras are more and more precise and easy to use as startups and devices makers compete to cease the market. Backed by powerful AI algorithms, it is now possible to create an ultra-realistic experience, helping people forecast and prepare how they will live in this new environment. And it works for existent and yet to be built real estate.
This technologies are now quite mainstream. A lot of professionals use Matterport digital twins technology for example to drive faster and more effective closing but it is becoming easier and easier to do so by oneself.
Property Management: will AI help luxury real estate owners?
One of the most difficult components of managing several rental properties and multi-family housing is property management. There is a lot that goes into the process, such as rental applications and transactions, drafting lease agreements, and preparing disclosure statements.
Using AI powered chat bot could grandly help luxury real estate properties owners to automatise this management.
and there is more. Owning multiple locations properties requires a permanent attention to potential administrative issues. Taxes, regulations, codes, due dates.
AI, by its access to large comprehensive databases represents a huge opportunity for optimisation and automation.
Luxury Smarthomes of tomorrow
We said it earlier: smart is the new butler.
AI is at the very core of this technologies and it’s coming handy at a time were everyone, even luxury properties owners, has to watch consumption closely.
Being able to automatise windows opening to optimise natural air conditioning is a plus for example, as well as having ones properties kept safe and watched through automated processes (smart cameras using AI for unknown people detection, permanent monitoring etc., cutting costs and saving lots of energy.
Real estate is a massive, fragmented industry that is typically slow to change, but the examples above show that AI is already having an impact in areas like predictive analytics, property estimates, smart home devices, mortgages, and others.
As artificial intelligence improves, it's likely to become an even bigger part of the real estate industry.
Looking to explore other real estate opportunities in Monaco? Stars Real Estate is here to help, whether you're looking to sell, buy or rent.
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