“How AI Is Transforming the Real Estate Industry”

Jeana Beech
Oct 20
3 min read

As the real-estate sector enters a new era, artificial intelligence (AI) is moving from the back-office to centre-stage—reshaping how properties are bought, sold, managed and valued.

What’s happening now

According to research by McKinsey & Company, generative AI (Gen AI) could create $110-180 billion or more in value for the real-estate industry. McKinsey & Company+2Rentastic+2
A study by Morgan Stanley indicates that AI has the potential to automate about 37 % of tasks in the real-estate (particularly commercial) sector—translating into large efficiency gains by 2030. Morgan Stanley
The National Association of Realtors (NAR) emphasises that agents who ignore AI tools may risk being left behind. National Association of REALTORS®

Key Ways AI is Changing Real Estate

Here are some of the major transformations taking place:

Smarter property valuation & pricing: AI algorithms analyse large datasets (property characteristics, neighbourhood trends, historical sales) to generate more accurate valuations and price predictions. Emitrr+2MindInventory+2
Enhanced search & matching for buyers/renters: AI can sift through many listings and user preferences to suggest properties that closely match buyer/renter needs—saving time and increasing satisfaction. Appinventiv+1
Automated marketing, listing creation & customer service: Tools powered by AI (e.g., chatbots, content generation) are helping agents generate listing descriptions, respond to leads, handle routine inquiries and automate workflows. Attract Group+1
Operational efficiency & smart building management: In property management and commercial real estate, AI is helping with predictive maintenance, occupancy optimisation, energy management, leasing insights, etc. JLL+1
Risk management & investment intelligence: For investors and developers, AI offers enhanced analytics: forecasting market trends, identifying undervalued properties, assessing risk across portfolios. AWA Law Firm+1

Implications for You (Buyer / Seller / Agent)

For agents: Embrace AI tools early—those who integrate them well will have a competitive edge in marketing, lead generation, listing creation and client service.
For sellers: Homes that are analysed or marketed by AI-powered platforms may reach the right buyers faster and at more accurate price points.
For buyers: You’ll increasingly find tools that help you discover properties, compare offers, estimate value and negotiate—all with more data behind them.
For everyone: While AI is powerful, it does not replace human judgement, local market knowledge or trust/relationship work. The best outcomes combine tech + human expertise.

Challenges & Considerations

Data quality and integration: AI depends on good data—fragmented or inaccurate inputs limit value. Terralogic+1
Ethics, bias, and transparency: AI systems must be monitored to avoid reinforcing bias (e.g., in valuations, loan/rental decisions). Appinventiv
Cost and change management: Investing in AI tools, training staff and integrating workflows takes time, money and strategy. McKinsey & Company
Human element remains vital: Real-estate is not purely transactional—it’s emotional, local, relationship-based. AI should support, not replace, that.

Final Thoughts

AI is not a fad in real estate—it’s a transformation. For the field in 2025 and beyond, it means smarter decisions, faster workflows and better experiences. But success comes not just from having AI tools, but from using them the right way—coupled with the local expertise, personal service and market relationships that define real-estate.

If you’re in the business (or thinking of buying/selling), now is the time to ask: