Once, only a concept associated with science fiction, artificial intelligence, and machine learning were being adopted in industries that the mind could accept. Today, we stand proud that our real estate industry has entered the conversation and is embracing how AI solutions are transforming property development in a big way.
Artificial intelligence, or AI for short, has not always been an unconcerned concept to navigate, it probably still isn’t. It initially seemed scary. We all remember that famous movie starring Will Smith in “AI” or, even worse, the machine uprising from the Terminator movies. As much as we hope for a bright future, we have always been scared of things going wrong or unknown entities. That is a natural human instinct which stands to reason why this has been a long time coming.
Contrary to what many people dreaded, the rise of artificial intelligence has not led to an influx of jobs being replaced by AIs, and neither is it likely to in the near distant future. Rather, AI transpired out of the need to derive greater value from increasingly extensive data sets, which have long since outgrown human capabilities to make sense of them. In a nutshell, it is about improving efficiency with digitalisation and automation of the real estate property development process and enabling smarter decision-making based on data-led facts gathered across a multitude of digital pursuits.
More and more of our life takes place at the intersection of the society of bits and the world of atoms. AI algorithms are doing things that the mind cannot fathom and the scary thing is that there is no sign of it stopping; most notably, it has the potential to learn much more rapidly in the digital sphere.
AI solutions to transform the property industry
Investing and employing machine learning and computerised vision to detect various property development appraisals is advantageous not only to a property developer but is also welcomed by financial institutions.
A significant factor in the success of real estate operations and investment is leveraging data to a developer's advantage. For instance, property development appraisal in real estate facilitates better decision-making, in which developers can appreciate the data patterns gathered by AI and machine learning tools. That can be the difference between losing a significant amount of money and, of course, reputation.
We previously talked about How digitalisation is revolutionising the property development industry. This follows on, how you can use commercial real estate artificial intelligence to inform property developers' decisions whilst remaining mindful of the government guidelines of ensuring that all new homes built from 2025 must produce 75-80% fewer carbon emissions.
Staying on topic, for developers, one of the most exciting prospects aside from their visionary development planning project is to be safe in the knowledge of the existence of a tool that can assist developers with the funding applications process of the said project. Presentation to a lender is everything and a developer can obtain this, to use a clique, at the click of a button. The AI element helps with various development planning scenarios based on data instead of an educated guess or the old-fashioned manual process.
This area in particular has the potential to change the world of property development beyond measure. In a sector like real estate, where the stakes are so high, the ability to filter a loss-making investment is something of a holy grail to investors. With the right combination of human expertise and data-based analyses and forecasting, AI can pinpoint new investment opportunities. Given how much the development real estate market landscape has changed, in terms of the complexity of development projects and the lending criteria, a good prognosis and viability are essential to a developer succeeding in this sector. These tools can help reduce risk, and present a tantalising proposal to a lender while maximising a great return on investment (ROI).
At Navian, we're not just excited, we're thrilled to be using AI to develop solutions which will make property development easier for everyone.
