How Algorithms Are Transforming the Global Real Estate Sector
There has been no shortage of hype in recent years over how algorithmic processes are transforming entire swathes of industry and driving automation forward.
Retail, logistics, accounting, manufacturing, and even the legal sector have all been subject to intense debate over the growing centrality of artificial intelligence and algorithms to the work that goes on in those industries.
However, one sector that is quietly undergoing a technological transformation with little fanfare is the real estate sector, which has been embracing the use of algorithmic selection process in virtually every facet of the property market.
Read on to find out exactly how real estate is being transformed by algorithms.
Choosing Where to Develop
One major development that is fundamentally transforming the property market right now is the increased use of algorithms by developers to help them choose where to build new properties.
Companies such as Skyline AI now assists some of the world’s biggest developers, including WeWork, Equinix, and Prologis, in analysing entire districts and cities, providing recommendation algorithms that tell them where to build based on the potential of certain areas to increase in value over time.
Knowing which area is going to be the next ‘hot’ neighbourhood is one of the most challenging aspects of working in real estate, meaning this represents a fundamental shift in the industry.
Lowering Mortgage Costs
Algorithms are also being deployed to help homebuyers secure affordable homes with mortgage deals that suit their means.
While the multi-billion-pound mortgage market can be difficult to navigate at the best of times, algorithms can now be applied in order to match consumer data with the right mortgage for them based on their own needs and budget.
This is what Trussle, a free online mortgage advice platform, does for its users.
With their own unbiased algorithm, they are able to trawl through the vast array of mortgages out there to find the ones at the lowest price and the lowest interest rates, potentially saving households thousands in the long term.
Enhancing Property Management
The business of managing property portfolios can be a hugely time-consuming one, often requiring significant manpower to pull off.
However, the introduction of algorithmic processes into the realm of property management has already begun to improve efficiency and cost-effectiveness like never before.
AI can be used to track property listings, flag up property damage and maintenance issues, track seasonal availability, and assess tenant suitability. All of this is improving the experience for owners and renters alike.
Improving Real Estate Marketing
As with virtually every other industry, the marketing capabilities of property developers have been massively improved by the introduction of algorithms.
Currently, algorithms are being used to recommend property listings to web users based on their search history, online activity, and social media engagements.
It is also being used to determine the demographics of people that will have the most interest in a specific property, as well as make personalized price offerings to individual buyers.
These are just some of the ways that algorithms are transforming real estate, which in turn is transforming the way that all of us live.