Artificial intelligence is a term associated with a machine that can perform functions like the human mind, like problem-solving, learning, or reasoning. It is constantly evolving and benefits many different industries by making processes quicker and more efficient and reducing the chances of human error. The real estate industry is no exception to this. There has been a growing trend of using Artificial Intelligence in real estate, and given the advantages that come alongside it, the usage is expected to increase in upcoming years. AI can potentially revolutionise the real estate industry and make it innovative. It helps match profiles between buyers and sellers, provides real estate agents with important information, performs market analyses and is a game changer in customer care.
How can Artificial Intelligence be Used in Real Estate?
Real estate data like land records, mortgage liens and title documents are public. However, going to local offices and reviewing all the documents was troublesome. Artificial intelligence has changed that completely. Computer algorithms can go through many records in just a few seconds and look through all information, including property value, debt, renovations, and the homeowner’s information. This helps in providing vital information to buyers, sellers, and investors. It also makes the entire mortgage lending process easier by finding the proper loan type for a borrower and an appropriate investor for the loan. Moreover, for buyers, AI can create a list of properties that might interest them. It does this based on what the client’s preferences are by way of the previous viewing. Therefore, private companies in the real estate sector must call for intelligent policies that encourage the use of artificial intelligence at the public sector level and encourage the government to adopt such technologies for the facilitation of all stakeholders.
Information for Agents
Artificial intelligence plays a significant role for real estate agents searching for houses that need to be sold. Where previously agents had to go to places, they can now find homes that are most likely to be sold in the upcoming months. This is done by AI collecting all information about a home, like when it was last sold, how long the current inhabitants have lived there and the rates of houses in a particular locality. This way, the agent can approach the person who owns the house and offer their services, making searching for houses easier.
Artificial Intelligence is useful when it comes to performing market analyses. In a sector like real estate, where the risk involved is so great, having the ability to predict market fluctuations is very useful. With the help of human expertise and data analyses and forecasting, Artificial Intelligence can predict future rent and sale prices. It can also identify the latest market trends and highlight investment opportunities. The real estate market heavily depends on investing at the right time and taking up good opportunities. AI aids in this by reducing the risk involved.
Artificial Intelligence has shaped the way customer care works. Unlike before, potential buyers do not have to wait an extended period to talk to agents or get replies. AI-powered chatbots can easily carry out most customer care queries that are frequently asked. Since most real estate companies now have an online presence and 97% of home buyers use the internet for home searches, This is especially useful because most questions are directed toward social media. Because of recent advances in language processing and machine learning, customers can now interact with chatbots the same way they interact with agents. They can answer questions regarding space availability, schedule appointments, assist in property sales, and create client profiles.
Artificial Intelligence has also been used in property investment. The traditional method of evaluating property is by looking at the area size, quality of the renovation, and a few other features. This is what would determine the price of the property. The success of real estate transactions depends on the right price. AI can be used to determine the right property price by evaluation. Moreover, online real estate websites can also differentiate between people who have a real intention to buy and those just viewing the website out of curiosity.
Challenges of Adopting Artificial Intelligence Technologies in Pakistan
Even though Artificial Intelligence has a lot of potential in the real estate industry, it has a few challenges. A significant challenge is programming systems that allow automatic reading and analyses of data. Another problem associated with Artificial Intelligence is that of security. Companies need to check data security and ensure compliance with legal stipulations. Moreover, Artificial intelligence cannot carry out an essential human function: decision making, which is why the real estate sector needs a streamlined interaction of artificial intelligence and the human ability to make decisions. For Pakistan, the skills required to deal with Artificial Intelligence and data management are in short supply, making it difficult for companies to get hold of individuals possessing them. To increase AI usage, the government should make an effort to provide students with data analysis courses to familiarise them with the AI landscape since the success of all future sectors will depend on keeping up with advancements in technology.
- The government should formulate intelligent policies and seek their effective implementation in the technology and real estate sectors.
- The demand for a skilled workforce in AI technologies will increase over time. The government should encourage vocational training institutes to generate programs that provide world-class training to the youth of Pakistan.
- Pakistan has recently seen a sharp rise in its IT exports. This highlights the potential of this sector in generating revenue for the government and raising the living standard of people. Even those living in small towns and villages can jump on this bandwagon and earn a decent living. However, deep diving into the world of artificial intelligence without specializing in any industry can lead to a lot of trained individuals lacking expertise in any specific sector. Therefore, universities and higher education institutions should develop a curriculum that incorporates artificial intelligence with the existing course of study.
- There should be public-private partnerships in promoting technology in the real estate sector of Pakistan.
It is no doubt that artificial intelligence is a leading technology that will contribute significantly t the real estate sector of Pakistan. Many issues and challenges that the real estate sector faces today can be solved using artificial intelligence. Be it automation or making processes efficient, the technology has the potential to make Pakistan’s real estate sector one of the leading sectors of its economy.