By Joseph Wong

The real estate industry, traditionally known for its complexity and high-stakes decision-making, is undergoing a radical transformation as Artificial Intelligence (AI) takes centre stage. From property search and recommendations to valuation, management and maintenance, AI is revolutionising how professionals and clients interact with the real estate market. 

The projected growth of the AI market, expected to reach US$407bil (RM1.77 trillion) by 2027, speaks to the increasing role AI is set to play across real estate functions, marking a pivotal shift in the industry.

In this new age, leading real estate firms like Jones Lang LaSalle Incorporated (JLL) are harnessing AI’s vast capabilities to streamline processes and make real estate more accessible, transparent and data-driven. With the introduction of JLL’s groundbreaking AI platform, JLL Falcon’s AI-powered solutions, it is clear that AI is reshaping real estate and elevating industry standards across the board.

One of the traditional challenges in real estate has been helping buyers find the right property to match their specific needs. AI-powered algorithms are now aiding the search process by analysing vast amounts of data to provide personalised property recommendations. This is just one way AI is making the search process faster, more efficient and highly targeted.

Predictive analysis

AI’s ability to predict market trends is also transforming property valuation. Automated Valuation Models (AVMs) now allow real estate professionals to access real-time property values, assess risk factors and identify market opportunities more precisely. By leveraging predictive analytics, developers can even tailor property designs and amenities to align with customer demands. These capabilities are invaluable, especially in fluctuating markets where rapid, data-backed decision-making can yield significant returns.

With Virtual Reality (VR) and Augmented Reality (AR), AI is further enriching the real estate experience by offering immersive tours of properties, enabling buyers to visualise spaces in detail without setting foot in them. On the local front, many Malaysian property developers and real estate agencies have already integrated VR to allow prospective buyers to walk through properties virtually, gaining a comprehensive view of layout and design. This enhanced decision-making tool reduces time on the market and helps potential buyers envision their future homes with confidence, even from afar. However, the next stage of AI deployment is still in its infancy due to the technical expertise and high costs required for implementation. As a result, it is currently restricted to larger players who have the necessary resources.

Operational efficiency

In property management, AI is proving its value by simplifying maintenance processes, reducing costs and enhancing tenant satisfaction. By integrating IoT devices with AI systems, property managers can monitor conditions like temperature, energy use and air quality in real-time. AI also facilitates predictive maintenance, scheduling repairs before issues become costly problems. This approach not only reduces operating expenses but also ensures a more seamless experience for tenants, as maintenance is managed proactively rather than reactively.

Hence, it is little wonder that big real estate firms like JLL are pushing the industry further into the future with the launch of its JLL Falcon, a comprehensive AI platform designed to fuel innovation and provide data-driven insights. JLL Falcon combines JLL’s proprietary data with generative AI to help commercial real estate (CRE) professionals maximise returns while keeping costs manageable.

JLL Technologies chief executive officer Mihir Shah highlighted the platform’s far-reaching potential: “JLL Falcon will serve as the foundation for the continued innovation of products and services that help shape the CRE industry.” With capabilities such as natural language processing, semantic understanding and advanced analytics, JLL Falcon is helping CRE professionals make more informed decisions in real-time, powering applications ranging from tenant management to property analytics.

One of the most exciting aspects of JLL Falcon is its integration with JLL GPT™, the first generative AI assistant crafted specifically for the CRE sector. Launched in 2023, JLL GPT™ has already seen rapid adoption across JLL’s workforce of 47,000 professionals. By analysing curated datasets, JLL GPT™ helps generate insights that enable real estate professionals to offer customised solutions to clients. Recent upgrades to JLL GPT™ include advanced image processing and a significant expansion of its working memory, making it a powerful tool for streamlining client consultations and creating data-backed strategies.

Other real estate players are following suit as such integration marks a step forward in enhancing efficiency across individual firms’ functions and setting a new industry standard for data-driven insights.

A global trend

The rise of AI in real estate is part of a broader trend where technology adoption is accelerating across the globe. In JLL’s 2023 Global Real Estate Technology Survey, over 80% of occupiers, investors and developers shared plans to increase their real estate tech budget over the next three years. 

As technology continues to evolve, PropTech solutions are paving the way for even greater AI integration, allowing functions like investment management, construction and facility operations to benefit from advanced analytics and predictive insights.

With such solutions, real estate professionals are now able to navigate industry challenges with greater confidence, using data-backed strategies to deliver tangible value. As AI tools’ analytics continue to drive value, the property industry is entering a new era of innovation. From creating more streamlined search experiences to supporting data-driven property management, AI is transforming how real estate is bought, sold, managed and experienced. 

With continued investment in AI, the sector is set to become even more efficient and responsive, redefining client relationships and setting new standards of excellence across the industry. In this era of digital transformation, AI has integrated itself as a strategic partner, revolutionising how the real estate industry operates and paving the way for a smarter, more connected future.

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