Artificial Intelligence in Real EstateAccording to MITSloan Management Review 2018 Artificial Intelligence or AI in business gets real. So artificial intelligence in real estate is transforming the industry.The Potential in Real Estate AnalyticsMany real estate firms have long made decisions based on a combination of intuition and traditional, retrospective data. Today, a host of new variables make it possible to paint more vivid pictures of a location’s future risks and opportunities.
Conventional analytical methods and data sources make it challenging to draw clear hypotheses and build robust business cases.
At the same time, new and unconventional data sources are becoming increasingly relevant. Resident surveys, mobile phone signal patterns, and Yelp reviews of local restaurants can help identify “hyperlocal” patterns—granular trends at the city block level rather than at the city level.What’s possible with Artificial IntelligenceTo use machine learning algorithm data make it significantly easier to aggregate and interpret the not traditional real estate data. Traditional data have limited value to anticipate the future for e.g. developments regardless for residential or commercial. Advanced analytics can quickly identify areas of focus, then assess the potential of a given parcel with a predictive lens.What’s the impact of AI in Real EstateA successful data-driven approach can yield powerful insights. For instance combining traditional and not traditional data base can forecast rents for residential with an accuracies up to 90%.How to make it happenBuilding advanced analytics into a portfolio is no straightforward task. Collecting enough data to build accurate algorithms takes time. To face this challenge head-on, companies might begin by employing analytics in executing their most critical strategic imperatives, Or they use other resources i.e. ai applications from outside. Or a mix of both.
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