View Point: Aditya Kedia, Managing Director, Transcon Developers writes how Artificial Intelligence and Machine Learning is transforming the Indian real estate.
AI, in layman terms, makes machines execute compound tasks, related to human minds, in a smart method. Machine learning makes computers (machine) scrutinise and solve problems by teaching it basic logic and making the machine intellectual enough to learn on its own, as it advances to solve diverse variations of the problem.
When it comes to assimilating AI, the Indian property industry is not far behind. From the way property seekers scout for property to offering probable buyers with applicable information to investigating property values – all the phases of property procurement are now powered by AI and machine learning.
Gone are the days when the Indian real estate industry had managed to comparatively stay concealed from multitude of the tech advancements and innovations that have majorly altered and renovated other industries.
In recent times, the Indian realty players have countersigned the revolutionary effects of the cloud, VR (virtual reality), the Internet of Things, Machine Learning and AI (artificial intelligence). Currently there have been indications that more realtors and real estate companies in India are positively retorting to their customers’ need for transformation, albeit subtly, particularly within the domains of AI.
In the Indian property sector, AI has the vast scope and ability to lessen operative expenses, augment and advance customer service, recover competence and condense resource depletion within the industry.
Indian realty investing, like so many other industries, is currently in a state of reformation thanks to its large part of technological novelty. One of the most potent and radical ground-breaking technologies all set to transform the investing in the property markets in current times is artificial intelligence.
Below mentioned are ways by which AI is modifying the real estate sphere for the better.
Chatbots —One of the most understandable ways artificial intelligence is renovating the over-all real estate industry is through chatbots. A multitude of Indian realty companies from brokerages to real estate crowdfunding podiums have started integrating chatbots into their websites.
These digital marvels let companies to save on the cost pertaining to customer service and also facilitate in optimizing time intervals spent on responding to questions by allowing a computer-generated assistant to reply to common queries that don’t modify from customer to customer.
Investor Analytics — Property investors can set revenue and growth goals and have them checked by an intellectual robot, who can evaluate risks based on investor parameters and make all the necessary modifications to benefit the investor to meet their monetary goals more competently.
Forecasting Loan Defaults — Platforms pertaining to real estate crowdfunding can make use of artificial intelligence to forecast loan defaults, which upsurges investor profits. By envisaging defaults, the process of risk valuation is well-organized and podiums can pay emphasis on profitable investments while reducing non-profitable ones.
Deal Matching — Buyers investing in real estate can set their criteria of investment and can be informed when a deal matches their benchmarks. For example, if an investor is keen on investing in only in a first lien position on commercial properties earning at least ten percent returns, they can set those standards on their investor dashboard and acquire a list of properties that match those principles which will also be exclusive of properties that do not fall within their preferred investment constraints.
Construction Automation — Builders and property developers want to improve their outlays and surge their returns. In current times novel crop of tools are being developed to aid builders systematise the process of material acquiring that permit them to obtain quality materials at the best price from the finest suppliers in the market.
By allowing the robots to handle the acquisition of materials, construction companies can cut down on expenditures and upturn profits by utilizing artificial intelligence as the chief technological driver.
Property Management — Artificial Intelligence can be applied in property management to observe and envisage when the systems of critical maintenance are ready for replacement. The technology is also valuable to keep a tab on rental trends in particular geographical zones and increase tenant rents automatically when leases terminate. Other details of property management such as building automation and growth analysis can be achieved by property management companies to regulate probable returns on the basis of critical inputs that influence rents, expenditures and proceeds in rental housing.
Intelligent Search Platforms –Search engines have always been an imperative tool for linking agents of real estate with the potential buyers and investors. To aid in streamlining and improving the online experience for operators, major search engines have started making use of AI to support users get much more information even from a very basic property search.
Conventionally, investors, brokers, property buyers and sellers were often limited to a minority of search criteria such as the value and property location. Now, with the help of AI, searches have become more refined with numerous information layers being made accessible for detailed properties. Users are now able to obtain details specific to ROI, good neighbourhoods and other apparently tiny property details prior to buying.
Artificial intelligence, and its close relative machine learning, are now being used more often in all facets of real estate, but its usage in real estate investing lets private investors encompassing builders and property manager’s operative ways to regulate costs, rise in returns and cope up with risk making use of mechanical systems based on the concerns of individual investor.