Digital Transformation in Real Estate: 2025 Overview

Technology is leading the way for real estate. While some companies go traditional, those adopting digital tools are reaping the rewards. Being tech-savvy in 2025 is the only right choice for staying competitive.

So, in this article, we’ll cover what digital transformation in real estate means, share its benefits, and look at real-life examples of how technology is reshaping the industry.

What is Digital Transformation in Real Estate?

Digital transformation in real estate is about using technology to improve how the industry works. This means introducing tools like artificial intelligence (AI), automation, and data analytics to make things faster, easier, and more efficient.

How Tech Simplifies Real Estate | Source: Ascendix

For real estate professionals, this can mean:

• Saving time: Automation handles repetitive tasks like scheduling or paperwork.
• Smarter decisions: Data tools give insights into market trends and client needs.
• Smoother processes: Digital platforms help manage transactions more efficiently.

For buyers and sellers, it means:

• Convenience: Virtual tours and online listings let buyers explore homes anytime.
• Better information: Digital tools help buyers make smarter decisions before contacting agents.
• Faster communication: Instant messaging tools keep everyone connected during the process.

In short, digital transformation makes real estate work better for everyone.

Benefits of Digital Transformation in Real Estate

Now, let’s see: is your real estate business keeping up with the times? Many aren’t.

In fact, digital transformation is still being overlooked, with 61% of real estate firms relying on outdated technology, according to Deloitte’s Commercial Real Estate Outlook 2024.

Digital transformation in real estate offers benefits that boost working processes, enhance customer experience, and drive cost savings.

For businesses, it helps cut costs and make operations smoother. AI automates routine tasks like data entry, customer inquiries, document extraction, or documents management so that employees can focus on more important work that boosts growth. This not only saves time and money but also speeds up processes. Plus, AI analytics can deliver data insights for executives to make smarter decisions faster, whether it’s about setting the right price for a property or crafting a marketing plan.

For customers, AI creates a personalized experience by analyzing customer preferences and suggesting properties suggestions that truly match their needs. This way, they spend less time searching and more time finding the right fit. Apart from it, AI customer service provides users with instant responses and answers to common questions, so they don’t waste time waiting for the reply about the property that doesn’t match.

Let’s discuss the benefits in more detail in the table below:

If you’re ready to explore how advanced technology can benefit your real estate business, the Ascendix team is here to help. With years of experience and our own proven tools, we understand what works and how to make it fit your needs.

Have ideas or questions? Book a free call with one of our experts today, and let’s discuss how we can bring your vision to life.

The Impact of AI on Digital Transformation in Real Estate

Artificial Intelligence is now a main driver of digital transformation in real estate, with many businesses striving to use its power to streamline operations, automate manual processes, reduce expenses, and consequently get more opportunities for growth.

While we can confidently state AI is bound to reshape or is already changing the industry, some areas experience real estate digital transformation faster than others. Let’s dive into more details.

Real Estate Appraisals

AI uses vast datasets for predictive analytics, enhancing real estate digital transformation. Having gathered and analyzed data like property features, historical sales prices, and current market trends, AI accurately assesses property values.

AI valuation systems are quite precise and typically estimate property values within 3.5% of their actual sale prices.

This precision enhances both the property appraisal process and investment strategies, providing stakeholders with reliable information for data-driven decisions.

AI for Document Management

Digital transformation in real estate influenced many spheres, and the most manual of them – document management – is no exception.

Now instead of gathering, sorting, categorizing, reviewing, and managing piles of paperwork, it is possible to simply scan them, launch AI software, and the system will provide the insights or manage the data faster and more accurately than any human would.

Here are some examples of how AI is used in document management:

• Document data extraction. Using the OCR technology, AI recognizes and extracts information from images, scans, PDF and DOCX files, pre-filled forms, tables, and even handwritten notes, transforming them into a digital-friendly format that can be processed by software.
• AI document summary. Contracts, agreements, and other documents that are dozens of pages long can be summarized into a concise overview of a document using AI. There’s no longer the need to read everything manually and risk overlooking a minor detail – AI summarizes the key points of the document in a requested format, like a table, bullet points, or plain text.
• Document management & AI generation. Intelligent document processing handles document organization, generation, and retrieval by sorting, tagging, summarizing, and categorizing documents, turning chaotic data into a well-ordered library.
• AI data entry. After the data is extracted from the physical document, AI can automate inputting information from the document into the required system or software, such as a CRM, TMS, property management system, or others.

Marketing and Lead Generation

Both AI analytics and generative AI are used in spheres like lead generation, powering real estate digital transformation.

Tools like AI sentiment analyze users’ online behaviors and engagements and identify satisfied customers, high-potential leads, and clients who were not quite happy with the service, triggering the notification for the team to resolve possible issues.

This way, businesses can significantly improve their targeting by contacting individuals who have demonstrated interest through their reviews, comments, or actions on real estate websites, and also improve their reputation by managing any unsatisfactory responses.

This capability empowers property firms to expand their reach and engagement strategies.

Moreover, GenAI-powered tools enable the creation of tailored marketing campaigns that communicate with targeted audiences at optimal times.

By adapting the content to certain audiences and their interest, companies using AI improve marketing effectiveness and customer acquisition.

Enhanced Customer Service

AI chatbots started a whole new era in customer support and lead generation. Instead of waiting for a reply (or, more often, simply leaving the page altogether), the customer now gets a fast and accurate response even at 2 AM because virtual assistants are there 24/7, ready to respond to your question.

This AI revolution in the customer support sphere improves service quality, boosts customer satisfaction, strengthens client relationships, and significantly increases loyalty, contributing to the fact that more customers return to business again and again.

Fraud Detection and Prevention

AI plays a pivotal role in enhancing security in real estate, as its analytics capabilities can also be used to detect and prevent fraud.

AI systems can analyze the data about typical transactions or activities on the platform to identify anomalies and suspicious patterns that may indicate fraudulent activity.

This allows real estate firms to verify buyer information, authenticate documents, and identify suspicious transactions in real time, getting more chances in locating and preventing fraud.

As a result, both businesses and clients benefit from increased confidence and security in their transactions.

Risk Assessment

AI analytics help in evaluating risks, such as the likelihood of mortgage defaults, by analyzing historical data and market trends in the area.

AI tools can also track changes that happened recently, which allows you to faster adjust the strategy as new data comes in and ensure you remain agile and prepared to handle potential issues before they escalate.

With these insights, real estate companies can make more informed lending and investment decisions, thus avoiding potential losses and optimizing portfolio performance.

AI-Driven Sustainability and Smart Building Technologies

Emerging trends include the integration of AI in sustainable property management practices and smart building technologies.

These innovations focus on optimizing energy usage with AI, reducing environmental footprints, and enhancing operational efficiency, which means staying in line with growing demands for eco-friendly and smart real estate solutions.

Property Management Optimization

AI facilitates efficient property management by automating routine tasks like rent collection, maintenance scheduling, and tenant communication. This automation not only saves time for property managers but also ensures seamless operations and improved tenant satisfaction.

AI Real Estate Digital Transformation: Challenges and Opportunities

Advantages of AI-Driven Real Estate Transformation

• Better Decision-Making. With AI real estate digital transformation, real estate businesses can process vast amounts of data quickly and get valuable insights regarding property investments, pricing strategies, and market trends.
• More Personalized Customer Experience. By analyzing customer data and preferences, AI tools provide better customer experience, such as tailored property recommendations and customized interactions specific to each individual.
• Better Efficiency Due to Automation. AI can work as a virtual assistant not only for the customer, but for the business as well. AI-powered automation, integrated in business workflows, reduces time-consuming manual tasks, such as documentation and scheduling viewings, and allows the real estate team to concentrate on things that require more personal input and cannot be automated.
• Smart Building Technologies. AI integration in smart buildings increases energy efficiency and resource management with automated systems that adjust to occupancy patterns and tenant preferences.
• Saving Cost in the Long Run. Due to real estate digital transformation and extensive use of AI automation, businesses would need to hire fewer personnel for performing manual tasks, and existing teams would save a lot of time for more strategic tasks, so using AI would equal fewer resources and less time, but higher accuracy and better results. Perfect combo!

Challenges of Real Estate Digital Transformation

• High Initial Investment Costs. Although saving resources in the long run, implementing AI requires significant initial financial investment, which can be a no-go for smaller firms. The budget for AI integration and real estate digital transformation includes not only the technology itself but also hiring a professional who can manage and optimize AI systems.
• Data Privacy Considerations. As real estate businesses handle sensitive customer and transaction data, ensuring top-notch implementation of data security protocols is an absolute must to protect both clients and businesses against breaches and misuse.
• Job Loss. The automation of routine processes may cause some employees performing these tasks to lose their jobs. However, it’s important to remember that while AI can indeed eliminate the need for some roles, it can also create new roles focused on AI management and strategy.
• Skill Gaps. The transition to AI-driven operations requires upskilling existing staff to handle new technologies, which can be a significant hurdle in terms of training and development.
• Change Management. Closely related to the previous point, change management is extremely important in real estate digital transformation. If the business owner or leader wants to adopt the technology efficiently, they must not only teach and train employees to use it but also explain why the company started using it and ensure the technology is used properly.

Solutions to Overcome Challenges in Real Estate Digital Transformation

• Step-by-step Implementation. Instead of launching a full-scale development of an AI system to automate all real estate operations at the company, start with small-scale deployments to manage costs and demonstrate value. This way, you will scale AI solutions gradually based on initial successes and learnings.
• Comprehensive Security. Along with AI development, you will need to allocate some budget to invest into advanced cybersecurity measures and ensure compliance with data protection regulations.
• Workforce Training. To make sure the technology is used effectively, develop training programs to upskill employees and prepare them for new roles in AI oversight, data analytics, and strategic utilization.
• Collaborative AI Development. Work with technology partners that excel in both AI and real estate and truly understand how to combine them to make the most of your investment. A reliable technology partner will follow best practices and efficiently utilize resources and advancements in AI technology, ensuring a holistic approach to AI usage.

Future Outlook for Real Estate Digital Transformation

The future of digital transformation in the real estate sector is both promising and imperative. As real estate digital transformation changes more and more businesses, it simultaneously becomes essential for any real estate firm’s survival and success.

Digital transformation is a crucial driver of efficiency, agility, and customer satisfaction in real estate. However, it is essential to have a proper strategy while embracing it. Businesses must be prepared for possible challenges and carefully select the technologies best suited for their goals. Implementing automation, data analytics, and AI chatbots can bring immense benefits, but a well-considered roadmap is a must to avoid pitfalls.

Central to the digital transformation is the focus on enhancing customer experience. Real estate companies must prioritize developing digital solutions that enhance not only business operations but also customer engagement and satisfaction. By doing so, they can better meet consumer expectations and establish a stronger market position.

Real estate digital transformation is a comprehensive evolution, not a fleeting fad that will disappear tomorrow. It is setting new benchmarks for success by enhancing agility and transparency and fostering a customer-centric approach. That’s why it is essential for restate companies to embrace this journey as an opportunity to elevate their competitiveness and redefine their operations.

Real Estate Digital Transformation Statistics

• AI in the real estate market was valued at $163.46 billion in 2022. (All About AI)
• The AI real estate is expected to grow from $222.65 billion in 2024 to $303.06 billion in 2025 at a compound annual growth rate (CAGR) of 36.1%. (The Business Research Company)
• Generative AI has the potential to generate $110 billion to $180 billion or more in value for real estate businesses (McKinsey).
• By 2030, the number of connected IoT devices used in real estate is projected to reach 40 billion. (IoT Analytics)
• 77% of prospective buyers prefer using VR to view properties remotely, while 65% of homeowners believe VR tours improve their understanding of property layouts. (Numalis)

10 Examples of Real Estate Digitalization

The Ascendix team would like to introduce the top examples of real estate digitalization that are transforming the industry. These innovations make processes faster, improve client experiences, and boost overall efficiency.

1. Artificial Intelligence

It’s no news that AI automates tasks, processes data, and enhances decision-making. Real estate firms actively use AI to analyze market trends, identify leads, and predict pricing changes.

AI analyzes property market data to forecast future prices, helping agents set competitive offers.

Key benefits of AI:

• Quick Insights: Get market predictions instantly.
• Accurate Valuations: Set property prices based on real data.
• Automated Tasks: Free up time by automating lead generation and follow-ups.

AI Property Valuation Interface | Source: Ascendix

2. Property Management AI Assistants

AI chatbots handle client interactions, answer questions, and provide property information 24/7. This improves response times and reduces agent workload. A chatbot on your website answers questions about available listings, schedules viewings, and provides neighborhood details.

Key advantages include:

• 24/7 Availability: Support clients anytime.
• Instant Responses: No waiting for answers.
• Reduced Workload: Let chatbots handle routine inquiries.

Example of an AI property management chatbot | Source: Ascendix

3. Smart Matching & Recommendations

AI-driven smart matching uses predictive analytics in real estate to recommend properties based on client behavior, search history, and preferences. By analyzing data, AI suggests listings that align with specific needs, making property searches faster and more relevant. This improves efficiency and client satisfaction.

Imagine: A buyer searching for a 3-bedroom home with a garden receives personalized listings that match these criteria. With predictive analytics in commercial real estate, agents can also anticipate what types of properties investors are likely to pursue based on market trends.

Key benefits of smart matching & recommendations:

• Personalized Listings: Deliver properties tailored to client preferences.
• Time Savings: No more sifting through irrelevant options.
• Forward-Looking Insights: Use predictive analytics to stay ahead of client needs and market shifts.

4. Document Abstraction

AI tools extract key information from documents like leases, contracts, and agreements. This speeds up paperwork and ensures compliance.

Document abstraction scans a lease and highlights rent amounts, contract dates, and renewal terms within minutes.

Contract Summary AI Interface

Key benefits of document abstraction:

• Faster Processing: Analyze documents instantly.
• Reduced Errors: Accurate extraction of critical details.
• Compliance Assurance: Ensure all terms meet regulations.

5. Data Entry Automation

It’s no news that manual data entry is tedious and prone to mistakes. AI automates data input tasks by capturing information from emails, forms, or documents and transferring it to the right system. This speeds up operations and improves data accuracy.

When a new property listing is submitted via a form, AI automatically enters the property details into the CRM, eliminating repetitive work.

Key features:

• Faster Workflows: Eliminate manual input delays.
• Fewer Errors: Reduce the risk of typos or missing data.
• Consistency: Ensure data is recorded uniformly across all platforms.

AI Data Entry Tool by Ascendix

6. AI Integration

Integrating AI into your real estate business allows your systems to work smarter, not harder. AI connects seamlessly with CRMs, ERPs, and other platforms to streamline operations and improve overall efficiency. At Ascendix, we specialize in AI integration, offering a full range of services from assessing your readiness to training AI models tailored to your business needs.

Ascendix can help you:

1. Evaluate if your systems and processes are ready for AI integration.
2. Seamlessly connect AI tools with your current platforms like CRMs, ERPs, and other business systems.
3. Tailor AI models using your specific data for smarter, more accurate predictions and recommendations.
4. Keep AI models performing at their best with regular updates, maintenance, and performance optimization.

AI Integration Process | Source: Ascendix

At Ascendix, we specialize in AI integration, and we’re here to help your business implement the latest AI-driven solutions. Let us guide you through the process of modernizing your operations and maximizing the potential of AI to boost efficiency and productivity.

7. Virtual Reality

VR technology allows buyers and tenants to explore properties remotely through immersive virtual tours. This gives them a realistic feel for a property without visiting in person, saving time for both clients and agents. VR also helps agents showcase multiple properties quickly and effectively.

For instance: A buyer interested in homes across different cities can virtually tour each property in one sitting, narrowing down their choices before scheduling in-person visits.

Virtual Tour Software | Source: Easypano

Key benefits:

• Convenience: Clients can view properties anytime, anywhere.
• Time Savings: Reduce the number of in-person showings.
• Engaging Experience: Offer a more interactive and memorable way to explore properties.

8. Big Data

The notion of ‘big data’ refers to the large volumes of structured and unstructured data generated at high velocity and variety. The appearance of the term ‘big data’ can be attributed to the extensive worldwide use of the Internet combined with the extreme digitalization of almost every sphere of human life.

In real estate, companies can leverage big data to gain insights into market trends, customer preferences, and property values, which extremely enhances decision-making for spheres like investment, property management, or marketing in real estate.

Key advantages of using big data include:

• Informed Decision-Making: Extensive data insights can improve and guide business strategies.
• Market Trends Analysis: Companies can stay ahead with real-time market trend evaluations.
• Value Optimization: Big data helps understand customer and property dynamics, which in turn optimizes value and investment.

9. Internet of Things (IoT)

IoT technology connects devices and trackers within properties into one single system that can be managed from a single device. An IoT network can include things like smart thermostats, automated security systems, or smart lighting switches, which all help monitor and control the property, streamlining property management.

Key advantages include:

• Better Property Management: Easily manage systems and devices from one platform.
• Energy Efficiency: Optimize energy use with smart IoT devices.
• Improved Security: Automated security solutions ensure tenant safety.

10. Smart Contracts

Smart contracts make real estate transactions easier and faster by automating agreements and payments. These digital contracts, powered by blockchain technology, reduce the need for intermediaries and enhance transparency and security in property dealings.

Key advantages include:

• Transaction Automation: Digital contracts are organized and managed automatically.
• Increased Transparency: Clients and businesses have secure and transparent dealings.
• Cost Reduction: Lower transaction costs by minimizing intermediaries.

Why Choose Ascendix as Your Digital Transformation Partner for Real Estate?

Ascendix drives digital transformation in real estate with deep tech knowledge and decades of industry experience. We specialize in AI-powered tools that enhance efficiency, accuracy, and customer service. Our team has built custom solutions like data entry automation, AI search, lease abstraction, and smart recommendations. We also provide real estate technology consulting services to help your business stay ahead in the market.

Why us?

We have over 20 years of experience developing tailored software for enterprises and startups. Our clients include real estate leaders like JLL and more than 300 others worldwide.

With five global offices, we offer 24/7 support and diverse expertise. Ascendix delivers practical solutions and proven technology to modernize your real estate business.