Unusually for an industry which tends to the low tech, artificial intelligence (AI) has become a hot topic for real estate. It is frequently cited as being “transformational” for the industry, but many find it hard to lock down practical applications.

For the uninitiated, AI tends to spark either fears rooted in dystopian sci fi about malign robot intelligence or the worry that it will make swathes of white collar jobs redundant. On the other hand, there is also a great deal of hype about the uses of the technology, treating it as akin to magic.

A simple definition of AI is that it is a set of technologies which enable computers to perform a variety of advanced functions, including the ability to recognise and translate spoken and written language, analyse data and to make recommendations based on its examination. However, this does not involve self-awareness, even though some AI-powered tech, like chatbots, can closely simulate a human.

Generative AI, a subset of the above, which includes applications such as ChatGPT, is capable of generating new content based on the materials on which it has been trained. Thus a generative AI app can create new images or text or ideas.

Simon Smith, Head of Research & Consultancy, Asia Pacific at Savills, says: “AI can be an important tool for real estate businesses and professionals. Anyone in the industry can start to use AI tools to help them with note-taking, writing and presentations.

“However, there is much more that can be done with specialist apps and, crucially, the right data. We are already exploring how it can be applied to the high-quality market data which Savills has collated over the years in order to generate new insights or to support investment theses.”

In a series of articles over the next few months, Prospects will examine practical applications for AI in real estate, focusing on three key areas:

• Leasing, property & facilities management: leasing due diligence, tenant queries, maintenance and sustainability
• Research, investment & investment management: identifying opportunities, quantifying investment risks and rewards, reporting
• Smart buildings and occupiers: managing building occupation, services and environment

Each article will outline real world uses for the technology in the property industry and consider where it might lead.

Smith says: “There tends to be a gulf between the early adopters and latecomers in tech, however AI is not something real estate professionals and asset owners ought to rush into. The technology and its practical applications for real estate are evolving all the time.”

Further reading:
Asia Pacific Data Centres Spotlight Jan 2025

Contact us:
Simon Smith