AI in Real Estate Development: Trends, Uses & Future of the Industry

Generative AI (GenAI) can be applied in real estate development just as it is in other industries. It can predict market and demographic trends, summarize local regulatory requirements, and consolidate information from multiple sources to draft applications for review. GenAI can also assess vendor proposals and suggest optimal negotiation terms or tactics using proprietary and publicly available data, showcasing key benefits of AI in real estate.

Energy management remains a key concern for developers, as the variability of energy demands and the need for real-time information are critical. Artificial intelligence in real estate can address this challenge by analyzing data at scale and generating predictive models for constantly evolving data sets; this is particularly relevant for commercial real estate AI applications. Many tools can now predict when parts may fail, automatically order replacements, and schedule maintenance without human intervention. Integrating these capabilities into the design phase ensures the necessary underlying technologies are in place to support them.

Emerging technologies in real estate are also poised to revolutionize the industry. One such technology is robotics for building structures. While robots have historically faced challenges on job sites due to uncontrolled environments, advancements are enabling their limited use for traditionally manual tasks such as bricklaying and cement pouring. For instance, mobile robots are now capable of constructing block walls based on GPS coordinates, ensuring precision and efficiency. These innovations not only optimize material use—by applying the exact amount of mortar needed—but also improve job site safety. A notable example is the Hadrian X, a mobile block-laying machine marketed as “Wall-as-a-Service” (WaaS), illustrating part of the future of real estate technology and how technology is changing the real estate industry.

Read other articles in our AI series:

• AI in Hospitality
• AI in Real Estate Development

While these AI trends in real estate and capabilities are promising, many businesses are still grappling with how to begin their AI journey. It’s easy to feel left behind when reading about industry advancements, but the reality is that most organizations are still in the experimental phase. According to a recent study by BCG, released in October 2024, 98% of companies are experimenting with AI, yet only 25% have developed the necessary capabilities to extract value. This leaves a significant portion of businesses seeking ways to better leverage AI in their operations, including applications like AI for real estate investment.

If you find yourself in this group, consider adopting a “start somewhere, start now” mindset. Rather than striving for perfection out of the gate, embrace the fact that this is a journey requiring leaders to educate themselves and their teams. Create a working group with cross-functional members to discuss how to use AI for real estate, share insights, and brainstorm potential use cases. This collaborative approach will raise awareness of the benefits of AI in real estate and risks while homing in on specific, actionable objectives.

Once ideas are identified, formalize a small team of leaders to evaluate use cases and allocate the necessary resources. Like any project, establish a clear charter with defined objectives and measurable results—such as hours saved or processes improved—to quantify the benefits and enable the organization to learn and grow as it matures.

The integration of AI into real estate development is not just about adopting new technologies, it’s about rethinking processes, fostering innovation, and positioning your organization to thrive in a rapidly evolving landscape. By taking incremental steps fostering cross-functional collaboration, and focusing on tangible outcomes, companies can unlock the transformative potential of AI and set the foundation for long-term success in the industry.

Learn how innovative technologies are transforming property management with High Real Estate Group.

1. How is Generative AI (GenAI) being used in the real estate industry?
Generative AI (GenAI) in real estate has several applications. It can predict market and demographic trends, summarize complex local regulatory requirements, help draft applications by consolidating source documents, assess vendor proposals, and even suggest negotiation tactics using proprietary and public data.

2. Can AI help with energy management in real estate development?
Yes, AI in real estate is particularly effective for energy management. It can analyze vast amounts of data to create predictive models for energy demands, predict equipment failures, automatically order replacement parts, and schedule maintenance. Integrating these AI capabilities during the design phase can optimize energy efficiency in new developments.

3. What are the main benefits of using AI in the real estate industry?
The benefits of AI in real estate are numerous. They include improved market prediction, streamlined regulatory compliance, optimized energy consumption, enhanced construction efficiency and safety, better vendor management, and data-driven investment decisions. Ultimately, AI helps in saving costs, improving accuracy, and fostering innovation.

4. How can a real estate business start implementing AI if they are new to it?
For businesses wondering how to use AI for real estate, the key is to "start somewhere, start now." Begin by educating leaders and teams about AI. Form a cross-functional working group to discuss potential applications and share insights. Identify specific, actionable objectives, formalize a small team to evaluate use cases, and establish a clear charter with measurable results to track progress and learn.