It is a fact that artificial intelligence (AI) is already more present than future. Companies in all sectors are looking for ways to take advantage of it, and the real estate sector is no exception.
Real estate assets are poised to take advantage of AI applications because a single investment can generate almost unlimited amounts of data. Understanding documents such as contracts, analyzing data, and predicting trends are just some of the benefits this new technology can offer the sector.
Ignacio Resusta, a private markets investment specialist at UBS AM, explains that AI programs can “read” existing documents, such as lease agreements, store key variables, and flag important terms. AI can help connect disparate data sources, such as subscription metrics, people flows, service usage, revenue, utilities, sustainability, mechanics, and repair orders. Companies with large volumes of data can use AI to create custom benchmarks.
Similarly, many asset management teams use artificial intelligence to analyze rental rate data to predict the optimal price for each unit, using real-time data and inputs. Possible future applications include real-time tenant credit analysis, market trend analysis, matching the amount of rentable square footage on a given floor of a building with leisure spaces and tenant demand.
There is also the prediction of environmental transition risk, the addition of alternative data to traditional underwriting (e.g., mobile data, shipping flows, market-based service demand), and automated valuation models.
Artificial intelligence can help write comprehensive market reports and quarterly fund reports or respond to routine data requests faster than a human. Whatever the application, in the future, companies will continue to need people to analyze AI results before they are published or used for decision-making.
Source: https://www.idealista.pt/