Real estate
AI

The role of AI in real estate: use cases and trends

Lead Business Analyst

Ivleva Natalia

Lead Business Analyst

Tech Researcher

Novikova Darya

Tech Researcher

June 6
2024
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Let’s face it, AI has become a part of almost every aspect of our lives, and real estate is no exception. From streamlining processes to enhancing customer experiences, AI in real estate is more than just a buzzword – it is truly reshaping the industry. 

"Based on the current market situation, I would say that AI is just starting to gain momentum across industries, including real estate.

And since the expertise is quite unique and hiring in-house teams is expensive, the companies that will succeed are the ones that create a high-quality algorithm tailored specifically to the real estate domain and offer the ability of its further integration."

Natalia Ivleva, Lead BA at SolveIt

Impact of Top Real Estate Trends 2024

In this article, we explore the many ways AI is revolutionizing real estate. You’ll also find inspiring examples of AI applications and get a peek into what the future holds for AI in this sector. So, if you have a project for real estate app development in mind, you’ll definitely want to learn about the incredible possibilities that AI offers.

How AI transforms real estate: 10 use cases

AI is one of the most exciting trends in proptech today. While we’re only beginning to uncover its full potential, there are already plenty of exciting ways to use AI in a real estate project. Here are some examples:

Intelligent property search

AI-driven search is a nice way to free users from ticking numerous parameter boxes over and over again. Algorithms can analyze past queries, saved properties, and preferences, and then pinpoint the best property options based on your unique needs.

But the magic of AI in real estate property listings doesn't stop there. Automated image recognition takes it all to the next level. By scanning photos of preferred properties, AI can list properties that have similar characteristics. Imagine how the process of searching can be transformed if users are able to find their dream kitchen or that gorgeous backyard just by snapping a pic.

Efficient lead generation

Generating high-quality leads is another perk of AI in real estate. AI algorithms help users avoid spending hours cold-calling or chasing down dead-end leads. They analyze vast amounts of data, including online behavior and market trends, to identify potential buyers and sellers who are most likely to engage. This means you can target the right people with the right properties at the right time. 

AI can also personalize marketing messages to make your outreach more effective, thus increasing your chances of converting leads into clients. In other words, AI-powered lead generation not only saves you time but also boosts your success rate.

“An AI assistant like this could even be learned to schedule viewings in calendars, set reminders, take notes after showings, and help to automate repetitive tasks.”

Natalia Ivleva, Lead BA at SolveIt

Personalized home-buying recommendations

AI becomes a powerful tool for real estate professionals, acting as a virtual assistant to match clients with the perfect properties. AI algorithms dive deep, investigating client's browsing history, saved listings, feedback, and budget preferences, to suggest properties that fit users' needs and tastes. 

Whether the user is seeking office spaces, retail locations, or family homes, the AI sifts through thousands of listings to identify the most promising options. Plus, it can factor in hidden costs like property taxes and potential renovations, giving the tenants a realistic picture of potential challenges.

Automated property management

Managing properties is time-consuming, but AI in real estate apps can simplify the process. AI can automatically handle tasks like tenant screening and maintenance requests, making life much easier for property owners – no more late nights chasing down checks or dealing with awkward phone calls.

For example, property owners can set up notifications to receive updates about finding reliable tenants, collecting rent payments, and getting reminders about needed property improvements. This helps landlords effortlessly manage routine tasks while keeping properties in top condition and enhancing tenant satisfaction.

Predictive analytics

AI empowers users to have a glimpse into the future (without any crystal balls, though). Predictive analytics provides the opportunity to foresee market trends, property values, and investment opportunities with pinpoint accuracy. There’s no need to examine vast amounts of historical data and current market conditions manually as AI can crunch that data in a matter of seconds.

This means that users will be able to identify the best times to buy or sell properties, optimize investment portfolios, and stay ahead of the competition. Whether you're a seasoned investor or a first-time buyer, predictive analytics ensure that you make data-driven decisions with minimal risks.

Virtual property tours

Visuals play a crucial role in capturing attention, allowing potential buyers or tenants to envision themselves living in a property. Artificial intelligence in real estate can be a great help with this visual element.

It allows users to explore new homes and apartments from the comfort of their couches. With advanced technologies like virtual reality (VR) and augmented reality (AR), AI creates immersive, interactive tours that allow people to walk through properties as if they were physically there. They can examine every corner and get a genuine feel for the space. Such tours can streamline the customer journey, and drive higher conversion rates for your real estate business.

“With AR/VR, developers and real estate companies can show buyers/renters what a property will look like in the future, giving them a competitive edge. 

Real estate agents can also use this to further inspire people to buy/rent by letting clients visualize the space after renovations and furnishing. Just imagine the partnership opportunities!”

Natalia Ivleva, Lead BA at SolveIt

Fraud detection & risk assessment

Fraud often interferes with the reality of property transactions. Fortunately, AI steps in to detect and prevent fraudulent activities. AI algorithms are taught to inspect vast amounts of data, including transaction histories, financial records, and market trends. Then, they identify suspicious patterns and flag potentially fraudulent behavior in real time. As such, buyers, sellers, and agents are safe from falling victim to real estate market scams.

Moreover, AI in real estate mitigates risk assessment. Through predictive analytics, AI can assess various risk factors, such as market volatility, economic conditions, and regulatory changes.

Smart home integration

Today's customers increasingly seek properties that function as dynamic, high-tech living spaces catered to their needs. Imagine step-by-step control over lighting, temperature, music, and more – all orchestrated seamlessly by AI to match each resident's preferences. The possibilities are endless – from enhancing comfort to improving energy efficiency – which drives higher demand, longer tenancies, and increased customer lifetime value.

But AI in real estate doesn't just stop at basic features. It can manage a security system that identifies familiar faces and sends real-time alerts when unexpected visitors come. Or monitor potential issues like excessive energy usage, water leaks, or smoke alarms.

Improved customer support

Real estate is quite a high-stakes niche, and exceptional customer support can make a difference. AI in real estate is revolutionizing this aspect by providing responsive around-the-clock assistance to enhance customer experience. 

Let’s say, a potential buyer browses property listings on Saturday night and has a question about mortgage options. But instead of waiting until the upcoming business day, users can quickly get detailed information from an AI-powered chatbot. Such chatbots can handle a wide array of queries, from basic property details to complex financing options, ensuring that no lead is left unattended.

Hyper-local market insights

When users pick properties, one of the key criteria they pay attention to is the neighborhood. AI in real estate brings this to a whole new level by providing hyper-local market insights. Algorithms analyze local sales records, demographic trends, school ratings, crime rates, and even weather patterns to offer a granular view of the area.

Armed with this knowledge, users can make strategic moves. For instance, they can identify up-and-coming neighborhoods before they become hotspots and buy properties before prices surge. For homebuyers, this means finding the perfect community that fits their lifestyle, needs, and future plans.

Real estate agents can also benefit from this, helping clients make informed decisions that align with their goals. Whether it’s recommending a family-friendly neighborhood with excellent schools or highlighting an area for commercial development, AI empowers agents to give tailored advice that goes beyond generic market trends.

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Real estate AI tools: 5 inspiring apps

This niche already boasts some standout apps that seamlessly blend AI and real estate. You can take the following apps as inspiration for your own product:

Realtor.com

Realtor.com uses AI to provide a personalized home-buying experience. Its property recommendations tailor search results to match user preferences and analyze browsing behavior to highlight the most relevant listings. The platform also offers real-time market insights that keep users updated on price trends, neighborhood changes, and investment opportunities. 

Additionally, Realtor.com offers a limited feature – an AI-powered Dream Home experience. Users simply describe their ideal home in natural language and AI uses its image recognition capabilities to find properties and curate a personalized selection of homes that embody the user’s vision. This integration of AI in real estate sparks exploration and exemplifies the future of real estate search.

AI in Real Estate App Example Realtor.com
Source: Realtor.com

Zillow

Zillow has revolutionized the real estate market with its advanced AI features. At the core of Zillow's AI capabilities is Zestimate, an AI-driven home valuation tool that provides accurate property price estimates. It checks millions of data points, including recent sales, tax assessments, and market trends.

Zillow also offers personalized property recommendations through its AI algorithms, which investigate user behavior and preferences to suggest homes that fit their criteria. Furthermore, Zillow’s AI-powered predictive analytics help users understand market trends and future price movements.

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AI in Real Estate App Example Zillow
Source: Zillow.com

Trulia

Trulia is a nice app example that leverages AI in real estate for a more user-centric search experience. One of its standout features is AI-based neighborhood insights, which provide detailed information on local amenities, school ratings, crime rates, and demographic trends. This helps users get a clear picture of what it’s like to live in a particular area.

AI also powers Trulia's personalized home recommendations, analyzing user preferences and search history to present the most relevant listings. Additionally, Trulia integrates virtual tours so that users can have an immersive experience without the need to visit in person.

AI in Real Estate App Example Trulia
Source: Trulia.com

Opendoor

Opendoor uses AI to provide instant home offers, analyzing market data, recent sales, and property details to give sellers a fair and competitive price. This eliminates the traditional hassle of listing a home, hosting showings, and negotiating offers.

Opendoor’s algorithms also help with virtual home assessments, providing sellers with accurate valuations without needing an in-person visit. Buyers benefit from AI as well, with predictive analytics highlighting properties that are likely to match their preferences.

AI in Real Estate App Example Opendoor
Source: Opendoor.com

Homesnap

Homesnap leverages AI to offer real-time market data and personalized home recommendations based on user preferences and behaviors. Additionally, the app provides insights into market conditions, helping users understand when and where to buy or sell.

Also, Homesnap has a Walk the Property Lines feature that utilizes AR to analyze property lines. This experience allows you to visualize the property's layout and dimensions in a more immersive way. It allows potential buyers to have a clearer understanding of the usable space before they even step foot inside.

AI in Real Estate App Example Homesnap
Source: Homesnap.com

Future of AI in real estate

While it's tough to predict the future, one thing is certain: AI and real estate will keep developing side by side. If we still try to talk about specifics, we visualize the following:

Further integration of AI in real estate will make virtual tours more immersive. VR and AR will offer highly realistic and interactive tours – buyers will be able to walk around and explore homes in great detail from anywhere in the world.

Virtual assistants will also get a tech makeover. AI-powered chatbots are likely to offer even more personalized advice and answer more complex queries.

AI in real estate can streamline the financial side by automating tasks such as mortgage approval processes, credit scoring, and loan underwriting. Additionally, AI can facilitate secure transactions through blockchain technology, ensuring transparency and reducing fraud. This will make investment decisions less speculative.

Property management will also see a significant boost. AI will automate maintenance requests, predict potential issues before they become costly repairs, and even handle tenant interactions. Smart buildings equipped with IoT devices will communicate with AI systems to optimize energy use, enhance security, and improve overall efficiency.

All in all, the future of artificial intelligence in real estate is beyond exciting. It's all about making the process smoother, smarter, and ultimately, more human. And since the market is about to become more crowded, you need to think fast and find a skilled team to bring your real estate project into reality.

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Real estate app development [SolveIt Experience]

The Hemie app offers an intuitive and engaging way to search and exchange rental housing in Sweden. Instead of boring browsing through listings, users can view options by swiping right or left, similar to popular dating apps.

If a user likes a particular housing option, they can easily "swipe right" on it. The app's intelligent AI system then begins analyzing the user's preferences and suggesting similar options that may suit them. This makes the search for a new apartment more personalized and exciting.

The uniqueness of this case is not only in principle of the app's AI operation. The most innovative feature of Hemie's apps is a third-party exchange, which turns leasing apartments into a new and exciting activity. By making use of it, you can rent the properties between 3 people and move to each other's house easily without utilizing agents' services. 

SolveIt Real Estate App Development
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Final word

Consumer demand for smarter solutions is rising. Homebuyers, sellers, and investors are increasingly looking for tools to simplify property management and decision-making processes.

By leveraging AI in real estate apps, you can help users solve numerous issues, gain a competitive advantage, and stay relevant in the market. So, if you venture into your next real estate project and seek expertise, SolveIt will be happy to navigate this innovative adventure.