Artificial intelligence (AI) and machine learning are beginning to transform how Asia Pacific real estate development projects are designed, built and managed. 

Real estate is often considered to lag other industries in its use of technology, but this is changing fast, especially in Asia Pacific, where an abundance of new construction offers the opportunity to test innovations.  

Will Forwood, managing director at Merx, a Savills company specialising in project and construction management, says: “AI and machine learning is starting to become embedded in the design, construction and project management process for the real estate industry. Technology can help us create better buildings, produced more efficiently and sustainably.” 

At present, mature markets such as Hong Kong, Singapore, Japan and Korea, as well as the large regional markets of China and India are embracing technology faster than the emerging markets of Southeast Asia. 

Generative AI can produce remarkable artwork and images, but is not yet used to create buildings and interiors, without human input. However, it is becoming more and more important in the design stage of buildings.  

For example, parametric design uses algorithms to test out a number of alternatives for a building, by showing the results of different parameters. Designers might use it to see how varying the shape or orientation of a building changes the project, or how a design intended to maximise natural light would look. This process is particularly useful for finding compromises which satisfy the different parties involved in a development project. Parametric design was used for the Oppo R&D centre (pictured above) by BIG Architects, which will be built in Hangzhou.  

This technology is linked to Building Information Modelling (BIM), which creates a digital representation of a building, a 3D model which encompasses all aspects of a project, including design, construction, and maintenance. Being able to envision and test a building digitally is particularly useful in space and labour-constrained markets in Asia, such as Singapore and Hong Kong. 

The ability of AI to process and analyse vast amounts of data  means BIM systems can become faster and more accurate. They will also drive increased sustainability through reduced waste and energy consumption.  

Software is already crucial to project management, enabling precise tracking of timelines, budgets, and milestones. Such precision leads to improved transparency and decision-making for both clients and project managers. However, AI could be a transformative leap for project management in real estate thanks to its vast processing power.  

For example, predictive analytics uses historical and real-time data to foresee potential delays and cost overruns, allowing project managers to fix problems before they occur. Driving efficiencies will also make projects less wasteful and more sustainable. 

“The key benefit of AI across the design and construction of real estate is that it enhances decision-making,” says Forwood. “So much of what we do is weighing up the best options and AI can help us do this faster and better, encompassing more information.” 

The use of AI in creative industries has sparked fears of redundancy amongst some workers: this was behind the recent Hollywood writers’ strike. However, Forwood says: “All technology, including AI, is there to help us, not replace us. We need to exploit it to help us make better, faster decisions and use it to free people to engage in the project’s human elements. We are on the cusp of exciting times.”

Further reading:
Merx Insights

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Simon Smith