How AI is Powering Real Estate: Key AI Technologies in Proptech

The world of real estate property development has been unpredictable, to say the least. It took a big hit during the pandemic, and industry experts say it’s only now that things are picking up again.

One of the key drivers of innovation in property technology is AI. Along with it comes new experiences that have the potential to transform how everyone approaches real estate. According to Fortune, the proptech market size is valued at $36.55 billion in 2024, and it’s expected to grow to $89.93 billion in 2032.

How will it get there? Right now, the focus is on fresh trends and new tech. This article takes a closer look at the key technologies making waves in real estate and proptech sectors, exploring how they are transforming the industry and shaping future developments.

What Is Proptech?

Proptech, short for property technology, refers to the use of tech and digital platforms to help people and businesses buy, sell, research, or manage real estate. It also works alongside financial tech (fintech) with the use of online payment and booking portals.

Proptech helps optimize multiple processes in real estate, saving time and energy for both buyers and sellers by streamlining operations. Some advanced proptech solutions include:

• Real estate mobile app development
• Real estate marketplaces and portals
• Application of emerging tech like artificial intelligence (AI), virtual reality (VR), and blockchain in real estate

Key AI Technologies Shaping Proptech in 2024

According to research done by JLL, AI, and Generative AI are among the top technologies that will make the biggest impact in real estate. In 2023 alone, about $630 million was invested into AI-powered proptech in the US, an impressive real estate footprint that totals 1.9 million square meters.

Here are the key AI technologies changing the proptech game today:

Augmented Reality and Virtual Reality for Virtual Showrooms

Gone are the days when potential buyers had to visit a property in person to get a feel for it. With AR and VR, virtual tours are made possible. The technology also opens doors for more detailed and personalized virtual staging, which includes highly realistic and customizable virtual renders of interiors, furniture, and décor. Imagine buyers switching out swatches and models in a few taps!

On the side of custom real estate software development, this means the limits are endless when it comes to rendering that 3D or 4D virtual property.

More Sophisticated Property Searches

Proptech software has evolved with more complex filters and features that generate more accurate matches. Nowadays, searches incorporate some of the following:

• Geolocation services
• Interactive maps
• Natural language processing that can understand casual and conversational search terms
• Voice-powered searches
• Direct AI-powered Q&A capabilities
• Property price comparisons
• Search results based on personalized preferences and historical data

Conversational Chatbots and Real Estate Assistants

As proptech integrates chatbots into its processes—from answering property questions, facilitating tenant concerns, and even processing requests—the tech evolves to become more natural and conversational-sounding.

As proptech integrates chatbots into its many processes, the natural language processing models evolve to sound more conversational. This makes way for more meaningful, less robotic interactions that can go on 24/7. Some uses of chatbots in proptech include:

• Answering property questions
• Lead generation
• Collecting contact information
• Facilitating tenant concerns
• Processing administrative and routine requests
• Support for property management tools
• Tech support for smart building systems

More Accurate Demand Forecasts

Brokers and property owners now have a new tool that can help them project market demand. AI forecasting can give projections based on seasonality, current or historical trends, geographic location, and more. Filters can even go as specific as determining what kind of properties are trending among certain demographics.

Even Smarter Home with Next-Level Building Automation

A smart home is characterized by having lights, heat, or electronic appliances that are controlled via phone or computer. These features lead to enhanced user comfort and convenience, optimized allocation of resources, and, in some cases, greater sustainability. The smart home market is anticipated to reach a market volume of $231.6 billion in 2028. AI’s role in it includes:

• Remote monitoring and control that allow properties or building systems to be switched on or off or surveyed at any given time, increasing efficiency and security
• Predictive maintenance that can monitor equipment and building infrastructure in real time, flagging potential issues before they arise and increasing overall operational efficiency
• Automated solutions for routine household processes
• Integration of renewable energy sources and smart grids

Rise of Green Solutions and Energy Efficiency

40% of global carbon emissions come from real estate, and one of the industry’s major trends is finding ways to address this. Smart building systems, also powered by AI, can help optimize infrastructure efficiency by monitoring and suggesting the most efficient usage of resources like electricity and water. This optimization leads to lowered energy consumption and carbon emissions.

Customized Software for Real Estate

Incorporating AI in app development is relevant even for proptech. Property managers are looking for solutions that are a perfect match for their specific real estate goals. This creates a demand for tailor-made software with features they can plug and play depending on what they need.

If you’re scouting for the best CRM for real estate or are interested in a custom AI development company, Taazaa’s digital solutions specialize in proptech and real estate.

Transform Your Proptech Solutions Today

Investing in real estate app development is often the first step in transforming your real estate operations. Your custom app can empower property managers, keep buyers and tenants engaged, and keep everything as efficient as possible with smart AI solutions.

If you’re wondering where to start, consider reaching out to Taazaa. We’re a real estate software development company with experience building tenant management solutions, property management platforms, construction management systems, and more.

Tell us what your real estate software goals are, and we’ll make help you reach them. Contact us today!