There’s increasing discussion across the globe about Artificial intelligence (“AI”) and how it’s being used in the real estate industry.
Yet, not everyone in the industry quite understands what AI is all about and how it links together with, for example, Building Management systems.
In short, AI is a wide-ranging branch of computer science focussed on building smart machines capable of performing tasks that typically require human intelligence. The objective being to replicate or simulate human intelligence in machines.
Sometimes referred to as “robotics” AI is rather more complex than just reactive machines and there are four types of AI and three stages, all of which can be utilised to some degree in smart BtR buildings of the present and future.
As an example of the growth potential: the global AI market was valued at nearly $40 billion in 2019 and is projected to reach more than $733 billion by 2027, a growth rate of about 42%.
How AI helps the BtR and property sector as a whole
AI has the ability to provide real-time data to management teams as they engage in strategic decision-making, marketing and overall operations. An artificially intelligent CRM can help real estate agents manage their transactions and reduce the number of errors, as well as assisting with property management and real estate investment—everything from data entry to lease abstraction.
An automated valuation model can gather data about public records, transportation options, area crime rate statistics, and school district ratings in order to generate an analysis of a particular property’s value.
In the BtR sector, AI can supplement both BMS and also client services with smart buildings ordering their own maintenance and customer-centric operational requirements
The main areas where AI will be a game changer
With many BtR buildings having the twin objectives of aiming to provide a better-quality living environment for tenants and create smart buildings. Which, not only are operationally more efficient but needing to be cognisant of the need to combat global warming and CO2 emission…
AI can help with:
- property management: it can create and customise apps, link in to tenant smart home technology and BMS to report issues, pay bills, manage contacts and many other actions;
- energy savings: AI plays a crucial role in helping make BtR buildings more energy efficient, essential as many regulatory bodies require investment properties to be more transparent about their energy consumption. AI dependent tools such as smart thermostats allow energy consumption to be tracked and adjusted having regard to the building type, the season and the weather;
- building maintenance and monitoring: AI can not only analyse but predict building related issues to prevent occurrences such electrical outages, water leakages, HVAC system breakdowns etc. This can help maintenance teams work proactively in preventing issues rather than being reactive.
Tenants can avoid inconveniences and disruption, whereas landlords and investors, avoid emergency expenses and unplanned costs, making better decisions using logic algorithms for expenditure items;
- smarter units: many new BtR units have smart appliances and AI to help residents connect better with their homes. For instance, it’s possible to easily connect your smart appliances to a smart home technology such as Alexa and carry out things using a simple voice command or by the wave of your hand. Such technology adds a unique selling point for any BtR adding significant value to assets as well as generating higher returns;
- predictive marketing: thanks to advancements brought in by AI technology, companies can deliver more personalised, customer-centric marketing by using digital analysis to estimate the behavioural patterns of customers and the most effective way to market to them.
What property experts within the UK see as key trends in future of AI and Proptech
As AI and Proptech continue to develop, leading real estate agents in the UK, many of whom are global names, see technology as being the way of the future for BtR and other property developments.
This may be in the areas of:
- data analysis: AI can analyse huge amounts of data to help agents to match the right properties to the right customers in a short space of time, which will help providers offer more targeted marketing and tailored solutions to clients;
- visuals: drones can be used to obtain footage of properties and their surroundings for use in virtual tours. They can also help in the production of videos of areas that are undergoing development or upgrades;
- augmented and virtual reality: VR can be used to provide clients with virtual tours, allowing prospective tenants and buyers to view properties on the other side of the globe, or look inside properties that haven’t been built yet. Augmented reality, which overlays virtual objects on top of a real-world environment, can make it easier for agents to sell to clients as they will have the confidence to make decisions knowing exactly what they are buying or letting;
- applications: technology such as voice commands and facial recognition are being used to improve the security in residential and commercial buildings;
- “bots”: AI applications such as chatbots can be made available to customers 24 hours a day, seven days a week. This helps commercial real estate agencies to provide clients around the world with readily available support, any time of day or night irrespective of their schedule or the client’s time zone;
- Blockchain and cryptocurrencies: Blockchain-based smart contracts are set to become more widely used in the world of commercial real estate whilst cryptocurrencies such as Bitcoin are also gaining traction, reducing the need for notaries, lawyers and title holders;
- Geolocation tech: AI draws critical data about properties from maps of their location. This data can be analysed and used to predict future changes and trends, possibly predict the price of property in that area and accordingly give agencies valuable insights into up-and-coming areas as well as trends in their prospective clients’ preferences;
- Internet of Things: more and more real-world items being equipped with sensors that can be read by Internet applications and translated into data. Where this applies to buildings, IoT makes it possible to build “smarter” properties, which are tailored to the needs of those occupying them.
In summary, AI can help make processes for real estate sales and rentals quicker and easier for customers and providers, saving a lot of time and hassle and being more targeted and efficient.
Some of the better-known companies utilising the power of machine learning
Utopi Connect
Is a unique data technology and integration platform that provides real time insight enabling investors and operators to objectively assess how ESG can enhance the value of a real estate portfolio.
Moda Living is a developer, operator and owner of private build-to-rent (BtR) homes, and has partnered with Utopi, to build a complete digital infrastructure, and optimise smart building technology across its development portfolio.
Utopi’s IoT multi-sensors will be installed throughout Moda’s residential communities and will measure humidity, temperature, CO2, light, noise, motion and occupancy, creating a wellness score. The sensors will automatically respond to adjust the environment to exercise real-time control of air-conditioning, security and lighting systems, optimising space for residents and saving money on energy costs.
SmartRent
One of our featured Game Changers, SmartRent is a smart home automation solution provider. Its proprietary software integrates with third-party hardware and other software vendors to provide users with one platform to efficiently manage and remotely control IoT connected devices in a home or building.
Final thoughts
The BtR industry has seen a lot of advancements due to the entry of AI and other technological advancements. Apart from improving property management, creating smarter units, and helping with predictive marketing, energy saving and building maintenance, AI has also improved the way decisions are made in BtR projects.
Better access to an in-depth analysis of data will continue to greatly impact the BtR sector as it strives to continue to be at the leading edge of growth in the overall real estate industry.
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