How AI and ML are changing the Real Estate Industry in recent Years?
Artificial Intelligence and Machine Learning have been advancing technology in every sector. In the 20th century, digitalization has completely changed the living standards or living ways of the people. Similarly, one of the sectors which are evolving due to AI and ML is the "Real Estate Business".
What is Real Estate?
The real Estate Business addresses the selling, buying, or renting of land property. A property management system is one of the main traits to set up or run a real estate business. The management system is essential for any sector. The land can consist of man-made buildings, hotels, resorts, or naturally made mountains, rivers and trees, etc.
A Real Estate business has several aspects such as Brokerage, Sales and Marketing, Property management, Lending the property, business models, etc. Real estate ensures various benefits to the developers as well as to the investors. It opens a gateway to a massive amount of income, which is a great advantage.
Nowadays, many investors are earning a lot while renting real estate property. Also, there is an emerging trend of buying old property at low rates, transforming it into a suitable building, and then selling it at a higher price. All this provides a huge financial benefit to real estate investors.
What is Artificial Intelligence?
Artificial Intelligence simply refers to a machine that can easily assemble or execute functions of human beings. It needs to be instructed well and must be maintained in a good way to get proper results. It gives a computer or a machine the full control to think on its own and perform the function accordingly.
AI is used mainly in developing video games, robots, and chatbots. AI is the future technology that will add to the development of a country. It has now been mandatory for many tech-based institutes to teach students about the coming development process involved in Artificial Intelligence.
What is Machine Learning?
Machine Learning commonly known as ML, is a part of AI which can inherit the data and then implement it wherever needed. All this complex learning is done with the help of Data and Machine Learning algorithms which are predefined. ML is used to make predictions based on data collection and evaluation.
Impact of AI and ML in the real estate industry
AI technology helped to improve the Home Search facility:
It has now become easy for the clients who have to buy any property like a house, a farming land, a building, etc. It has improved the Home Search facility through which they can find a property for them.
Filters like Location, Number of rooms, Price, etc. are helpful to the clients looking for a land property. Artificial intelligence in real estate is becoming the need of this industry. Moreover, Machine Learning has made it much more accessible by showing a perfect land property by analyzing the search patterns of a client.
The kind of property one is searching for is shown or comes up in a recommended list to the particular client.
AI applications:
Artificial intelligence property management has various applications and websites which are an interface between them and their clients. Hire Flutter developers to ensure that apps created are accurate. It is an interactive platform that clears all doubts and answers the queries related to the property.
Such an interactive interface has a stronger impact on the client viewing the application or site. They immediately get answers to their queries which makes it easy for them to choose. These applications also offer various other services to help their users.
Al and ML help in the agent recruitment process:
Recruitment of suitable agents becomes a really important task for the real estate management people. Right people are required for the team to give out the desired result for the company.
Artificial intelligence and machine learning help the company to recruit professionals which are suitable for being real estate agents. To ensure this, the technology helps in the interview process.
Also, it offers other advantages like analyzing and providing the market demands. So that the management team along with hired agents could move to the areas where the demand is high. This helps in fair recruitment too without involving any unfair means.
Makes the transaction process easier:
The introduction of technology has made the transaction process easier. Real estate agents do not need to rely on computers to manage the data of their clients. It, therefore, minimizes the mistakes by eliminating human involvement.
Check out a property for its clients:
Artificial Intelligence plays a vital role in analyzing the future market demands and major changes in the property development sector. This ability of AI makes it perfect for real estate agents to rely on.
It helps the clients by checking out the various parameters of the area around the desired property. Parameters like nearby hospitals and markets, the crime rate of that area, the age of the property, etc. are estimated by the technology through public records. It is then recommended to the client.
Gives an approximate price value of a property:
Machine learning provides the client an estimated rate of a property based on the condition of the property and its geographic location. The prices of the property may go higher and lower depending upon various factors. So it is advisable to look upon the values of property given by these machines.
There are many automatic evaluation systems and machine learning models available where a client can have a watch on price rates. Whenever the client gets a suitable property at a suitable rate they can buy it. For example, pricing tips Airbnb provides the clients with properties of different price values for different days.
The price of rent of a property can also be found by using such models. This gives a wide variety of choices to the customers so that they can select a perfect property to buy, rent, etc. Machine Learning in the real estate industry helps to give a straightforward valuation to the customers.
Facilitates the loan system:
Banking management becomes a lot easier using Artificial Intelligence and Machine Learning. It provides facilities like data analysis and data storage. This helps the banking system to lend loans to the appropriate investors or real estate agents.
Real Estate Scenario in India:
India being a developing country is showing tremendous growth in revenue generation and digitalization. With the growing digitalization in our country, the industries are implementing different technologies such as AI and ML. Similarly, the Real Estate industry is one of the most developing industries in India.
Real estate is the second-highest employment generation industry after the farming industry in India. It uses Al and ML to improve its functions and offer a vivid view to the customers. Real Estate India is expected to rise in market size of US$ 1 trillion by 2030. Also, the government of India along with the state governments are taking various initiatives to develop the sector.
Real Estate Investment Trust has been approved by the Securities and Exchange Board of India (SEBI). This has opened gates for investors to invest in the Indian Real Estate sector.
There is a shortage of about 10 million housing properties in urban areas of the country. By 2030, more than 25 million units of housing are needed to accomplish proper housing facilities in urban areas.
Nowadays, there has been a great demand for residential real estate which contributes to this industry. People from foreign countries are interested in settling in India. They also buy or rent properties due to cheap prices of property and greater benefits.
In recent times, Online real estate in India is prospering. The high growth in the real estate sector is also due to the Covid-19 pandemic. The prices of the property went down. It became a great opportunity for those who desired to buy cheap property. Eventually, the online real estate business grew during the pandemic.
Wrapping up:
Real estate is one of the most populous industries worldwide. It comprises Housing, Hospitality, Retail, and Commercial. Advancement in technology has immensely contributed to the Real Estate sector.
The use of Al and ML saves a lot of time, makes work easier, and provides many facilities to the customers.
Briefly, AI and ML help in ease of transaction process, recruitment process and recommends the property to clients with the price. Also, it helps banking management by making the process of lending loans easier. At last, technology has played a major part in the development of the Real Estate Industry.
