Top 22 Use Cases of Generative AI in Real Estate

October 30, 2024
16 min

The real estate industry is experiencing a technological revolution, with AI being at the forefront of it. Among the variety of AI technologies and applications, generative AI in real estate stands out for its ability to create new content from existing data, generating descriptions, listings, images, and many more.

Summary of the use of genAI in real estate:

  • The adoption of generative AI in real estate is projected to grow from $351.9 million in 2022 to around $1.047 billion by 2032, marking a major industry shift.
  • Though real estate agents are the primary users of generative AI, the technology benefits the entire industry by making transactions faster, more transparent, and easier to track for all parties involved.
  • Major real estate companies like JLL, Zillow, and CBRE are already leveraging generative AI, though challenges around ethics and data quality remain key considerations for broader adoption.

In this article, we will explore the top use cases of Gen AI in real estate that are driving this transformation. Discover how generative AI is reshaping the industry and gain a competitive advantage with Ascendix.

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What is Generative AI in Real Estate?

Generative AI in real estate refers to the use of AI algorithms to create new content—such as property images, real estate descriptions, and virtual tours—from existing data received from the company records automatically or manually inserted by a person, like a real estate agent.

What Areas of Real Estate Can Benefit from Generative AI?

According to a report by Precedence Research, generative AI in real estate is primarily used by real estate agents to generate property descriptions, draft contracts, analyze their documents, and generate marketing materials.

However, GenAI in real estate can benefit a much broader audience – from investors to landlords and tenants. Here’s a quick overview of the subsectors and operations in real estate that can benefit from generative AI.

Areas benefiting from genAI in real estate

  • Property operations: Generative AI in real estate can streamline property management tasks such as tenant screening, lease management, and maintenance requests. Tasks such as maintenance requests, account management, and rent collection have become more streamlined. AI can handle common tenant inquiries, reducing the workload for property managers.
  • Acquisitions: Investors can utilize generative AI to identify investment opportunities, get a summary of potential risks, and simulate various investment scenarios. Creating marketing materials and investor presentations and responding to queries can all be streamlined with generative AI. By deploying AI-powered chatbots, investors can have their questions answered more efficiently and promptly.
  • Marketing and sales: Real estate professionals can utilize gen AI for personalized marketing campaigns. Having analyzed existing sets of customer data, generative AI can create targeted advertisements and tailored content that resonates with specific audiences, fitted for a certain communication and marketing channel.
  • Finance management: Generative AI can automate and optimize various financial management tasks, such as budgeting, financial reporting, and expense tracking. Advanced data analysis capabilities of GenAI in real estate enable more accurate financial planning and risk management due to the timely generation of financial reports, analytics, and investigating market trends.
  • Customer support: AI-driven chatbots and virtual assistants can provide 24/7 customer support, answering common inquiries and guiding clients through processes like property searches and document submissions. This ensures quicker response times and a better overall customer experience. AI can also track customer interactions and gather feedback to further improve service quality.

Why Generative AI in Real Estate is Defining the Future

Benefits of GenAI in real estate

JLL calls generative AI one of the three technologies expected to have the biggest impact on real estate.

This can be attributed to the following key benefits:

  • Efficiency through automation. Generative AI in commercial real estate automates routine tasks like property listings and image generation, reducing time and labor costs.
  • Enhanced customer experience. GenAI for real estate creates virtual tours and property recommendations, improving customer engagement and satisfaction.
  • Innovative property marketing. Generative AI in real estate creates high-quality visuals and detailed property descriptions, which helps to enhance marketing campaigns and attract more property buyers.
  • Cost savings. Generative AI in commercial real estate streamlines operations, reducing overhead costs and optimizing resource allocation for financial savings.
  • Scalability. The AI model is trained to generate relevant real estate content and scales up easily without a proportional increase in resource requirements

 

 

Top 22 Use Cases of Generative AI in Real Estate

Use Cases of Generative AI in Real Estate

Text GenAI for Real Estate

Text GenAI in real estate is transforming the industry by automating the creation of written content. From property descriptions to marketing materials, it ensures high-quality and consistency in the written content and is a game-changer in streamlining creative tasks for real estate players.

Automated Property Descriptions

How It Works: Generative AI in real estate can automatically generate detailed and compelling property descriptions from basic input data such as property type, location, size, and features.

Real-life Examples: Companies like Opendoor and Zillow use AI to automate the creation of property listings, making the descriptions not only engaging but also SEO-optimized and error-free.

Generative AI in real estate descriptions: tool interface

Market Analysis Reports

How It Works: Vast amounts of real estate market data are analyzed by generative AI in real estate to produce concise, insightful market analysis reports. These can include summaries of market trends, pricing predictions, and comparative market analysis.

Real-life Examples: Real estate investment companies may utilize AI-generated market analysis to provide clients with up-to-date and accurate market insights without the intensive manual effort required.

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Personalized Marketing Emails

How It Works: GenAI real estate can create personalized email content tailored to certain categories of clients based on their preferences, search history, and behavior. This enhances engagement and conversion rates.

Real-life Examples: CRM platforms like Salesforce Clouds are using AI in real estate to personalize email marketing campaigns, increasing their effectiveness and client satisfaction.

GenAI in real estate: email writer

Social Media Content Creation

How It Works: AI tools can generate engaging social media posts that highlight property features, market trends, or promotional events, helping agencies maintain a consistent and active online presence.

Real-life Examples: Companies like Compass use GenAI in real estate to create and schedule social media content, freeing up valuable time for real estate agents.

generative ai in real estate social media content creation

Lease Agreement Drafting

How It Works: Generative AI in real estate can be used to draft lease agreements by pulling relevant clauses from an existing real estate company database and customizing them to fit specific property transactions.

Real-life Examples: Legal tech companies such as LegalZoom have AI solutions that assist in drafting real estate lease agreements, reducing the time and effort required by the teams.

Client Communication and FAQs

How It Works: Generative AI chatbots can handle routine client queries and provide information about listings, processes, and market conditions, mimicking human-like interactions.

Real-life Examples: Real estate websites like Realtor.com employ AI chatbots to provide instant responses to client queries, significantly improving customer service with such use of generative AI in commercial real estate.

AI chatbots for real estate automation

Blog Content and Thought Leadership Articles

How It Works: GenAI in real estate can generate blog posts and articles on topics relevant to real estate, offering insights, tips, and market analysis to establish a brand as a thought leader.

Real-life Examples: Automated content creation tools like Jasper are used by real estate companies to maintain active blogs with minimal human intervention, ensuring ongoing content production.

Image-Generative AI in Real Estate

Virtual Staging

How It Works: AI tools can digitally furnish empty properties, creating appealing, fully furnished rooms in photographs to help potential buyers visualize living in a certain space.

Real-life Examples: Companies like Virtual Staging AI App, SofaBrain, and InteriorAI use real estate AI virtual staging to transform unfurnished properties into beautifully staged homes, therefore showing how the house can possibly look like and significantly boosting buyer interest.

image generative ai in real estate: virtual staging

Photo Enhancement

How It Works: GenAI for real estate enhances property images by improving lighting, color balance, and resolution, turning average photos into high-quality visuals that stand out.

Real-life Examples: Property platforms such as Zillow use real estate genAI tools to automatically enhance property photos, ensuring listings look professional and attractive to potential buyers.

Image Upscaling and Restoration

How It Works: AI can upscale low-resolution images or restore old photographs, maintaining clarity and quality, which is particularly useful for historical properties or low-quality original images. AI generated real estate images are of high quality and are more appealing to be presented in listings or on the real estate agency’s website.

Real-life Examples: Companies like Topaz Labs and Let’s Enhance use GenAI to upscale and restore images, making every listing look its best regardless of the original photo quality.

 GenAI in real estate for image upscaling

Aerial and Drone Image Analysis

How It Works: Generative AI in real estate can analyze aerial and drone footage of properties and improve their quality to create high-resolution visuals that showcase properties from unique perspectives, providing potential buyers with comprehensive views.

Real-life Examples: Global real estate firms can use AI-driven aerial image processing to enhance drone footage, giving buyers a better understanding of property layouts and surroundings.

Architectural Visualization and Renderings

How It Works: Gen AI in real estate generates realistic renderings of new developments or renovations, allowing potential buyers to view detailed visualizations before construction or refurbishment is complete. This allows for better visualization of possible renovations and increases the chance of the property being bought.

Real-life Examples: Companies such as Archilogic and Styldod use Gen AI for real estate in creating highly realistic architectural visualizations, helping developers and agents to market projects more effectively.

Virtual Property Tours

How It Works: After the real estate agent inserts relevant and suitable photos of the property, generative AI for real estate stitches together high-quality photos to create immersive 360-degree virtual tours, allowing buyers to “walk through” properties remotely.

Real-life Examples: Zillow 3D Home employs AI to generate virtual tours, providing buyers with a realistic view of properties from the comfort of their own homes.

Floor Plan Generation and Visualization

How It Works: GenAI in real estate can create floor plans from simple sketches or blueprints, enhancing the visual representation of property layouts.

Real-life Examples: Tools like SketchUp use the capabilities of generative AI in real estate to generate polished, professional-quality floor plans that help buyers understand property dimensions and layouts more clearly. Sketchup enhances the design process by allowing users to get AI generated real estate images quickly from their 3D models and receive the floor plan of the property.

Real-time Customization

How It Works: With Gen AI in real estate potential buyers to customize visuals in real-time, such as changing wall colors, flooring, or furnishings in virtual tours and images.

Real-life Examples: Zillow’s AI-powered 3D Home Tour includes features where users can experiment with different design elements, making it easier for buyers to personalize their future properties according to their own tastes.

 

 

Sound-Generative AI

Narrated Property Tours

How It Works: AI tools can provide automated voice narration for virtual property tours, along with detailed descriptions of property features as users move through rooms.

Real-life Examples: Zillow 3D Home integrated AI-generated voiceovers to their virtual tours to make the experience for future renters and buyers more informative and engaging.

Dynamic Listing Descriptions

How It Works: Generative AI in real estate converts text-based property descriptions into audio format, making it easier for users to consume information while multitasking.

Real-life Examples: Real estate apps and websites may incorporate AI-generated audio descriptions to allow potential buyers to listen to property details while on the go.

Interactive Voice Response (IVR) System

How It Works: AI-powered IVR systems guide callers through various options, providing property details, addressing inquiries, and facilitating connections with agents.

Real-life Examples: Companies like EliseAI and HERO provide real estate agencies with AI-powered IVR systems, which can handle high call volumes from the customers, improving overall efficiency.

Video Gen AI in Real Estate

Automated Property Video Tours

How It Works: Generative AI tools create high-quality video tours of properties by stitching together images and footage, adding transitions, and generating narrations or text overlays.

Real-life Examples: Platforms like REimagine use AI to produce automated property video tours that showcase various features, making listings more dynamic and engaging for potential buyers.

Virtual Renovation Visualizations

How It Works: AI generates simulations of potential renovations, letting buyers visualize changes such as new layouts, decor, and upgrades even before they are implemented.

Real-life Examples: Companies like Visual Stager use GenAI real estate tools to provide virtual renovation previews, helping buyers imagine the full potential of properties.

Promotional Videos

How It Works: AI generates professional-looking promotional videos that can be shared on social media, websites, and emails to attract and inform potential clients.

Real-life Examples: Real estate agencies use AI tools like Synthesia to create engaging promotional videos that highlight new listings, market trends, and company updates.

FAQ and Tutorial Videos

How It Works: Based on the information in the real estate company’s CRM or knowledge base, generative AI in real estate can create instructional and FAQ videos that address common client questions, provide how-tos, and guide users through processes like property buying or leasing.

Real-life Examples: Websites like Realtor.com employ AI to create FAQs and tutorial videos, offering valuable information for the users even before they have some questions.

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How Does Generative AI Work?

Gen AI in real estate uses advanced algorithms to produce new content based on pre-entered data. At its core, this technology utilizes machine learning models and natural language processing algorithms to analyze and learn from large datasets which may include structured and unstructured data, images, and conversational language.

how does generative ai in real estate work

Step 1: Data Collection and Training

Initially, large volumes of data, such as property images, descriptions, floor plans, and property sales data, are collected. This dataset serves as the foundation for training the AI model. During training, the model learns patterns and features from the data, enabling it to generate new, realistic content.

Step 2: Content Generation

Once trained, GenAI in real estate can create new content that mirrors the original data. For example, it can generate high-quality property images, devise detailed property descriptions, and simulate virtual tours for the property the AI has enough information about. This process involves predicting and filling in details based on the learned patterns, resulting in content that is both accurate and compelling.

Step 3: Integration and Automation

Generative AI in commercial real estate can be integrated into various real estate platforms, marketplaces, real estate CRMs, and real estate business systems. GenAI in real estate can automatically create appealing property listings by combining images, descriptions, and relevant property details with only minimal human intervention – a relevant prompt and inserted relevant data. This way, GenAI for real estate enhances efficiency, ensures consistency across listings, and reduces the amount of manual effort required.

Step 4: Continuous Learning and Improvement

Generative AI models can be designed to continually learn and improve. As more data is fed into the system, the generative AI in real estate can refine its algorithms and improve its output quality. This adaptability ensures that the AI remains relevant and effective, even as market conditions and real estate trends evolve.

 

 

Generative AI in Real Estate: Success Stories

The adoption of generative AI in real estate is skyrocketing, and leading real estate companies have already made sure they integrated AI into their operations. Let’s discover in more detail how it is possible to accomplish this.

GPT Model for Commercial Real Estate Introduced by JLL

JLL, a leader in the commercial real estate market, introduced their first GPT model specifically for CRE businesses. This AI model utilized JLL in-house data as well as public CRE data to provide users with the most relevant and important insights into the market.

With their new technology, JLL’s facility managers can transform standard space utilization and portfolio optimization dashboards into actionable conversations. By combining qualitative information with AI insights, JLL consulting experts can offer comprehensive workplace planning advice faster.

Already, JLL’s AI technology has improved building efficiencies, generated 3D leasing visualizations, calculated sustainability risks, and powered investment leads, which is an incredible improvement of the company’s competitive advantage in the CRE market.

AI in Real Estate: Zillow Example

Zillow, a leading online platform for property search, has harnessed AI to enhance its customer experience and provide users with a more intuitive and personalized platform interface.

Zillow has implemented its dedicated Zestimate tool, which provides the platform users with accurate home valuation by analyzing recent real estate sales in the area, property features, and local real estate market trends.

Except for this, Zillow employs AI to optimize property recommendations, helping users find homes that better match their preferences and needs.

Moreover, Zillow’s integral part is now online 3D property tours, which allow buyers and tenants to identify whether the house would suit them perfectly.

Keyway: AI for Real Estate Investors

Keyway, a forward-thinking real estate technology company, leverages artificial intelligence in the commercial real estate market.

Keyway used AI to streamline the processes of property evaluation, investment analysis, and tenant management. Their AI-powered platform analyzes market trends, property characteristics, and financial metrics, to generate actionable insights for real estate investors and agents.

This allows the company to offer more precise property valuations, optimize investment opportunities, and enhance decision-making for their clients. Through AI innovation, Keyway enables clients to achieve superior outcomes in their CRE operations.

Generative AI in Real Estate Market Size 2022 to 2032

What to Watch Out for Before Implementing Generative AI in Real Estate

Implementing generative AI in real estate can provide your business with a significant competitive advantage. However, successful implementation requires careful strategy to avoid potential pitfalls and maximize benefits.

Here are some key factors to consider:

  • Data quality. The foundation of any effective AI system is high-quality data. In real estate, this would include property details, market trends and sales information, client and lead data, and historical transaction data. Inaccurate or incomplete data can lead to incorrect and misleading insights and unreliable outputs from the AI model. It’s crucial to audit and clean your data before integrating AI to ensure it’s both comprehensive and current.
  • Ethical use of AI. Generative AI in real estate must be deployed responsibly to avoid potential ethical issues such as intellectual property rights breaches or sensitive data leaks. The ethical use of GenAI real estate includes ensuring privacy and security for client data, avoiding biases during training AI models, and maintaining transparency in the use of AI. Ethical guidelines should be established, and AI systems should be regularly audited to comply with these standards.
  • Integration with existing systems. AI implementation should seamlessly integrate with your current technology stack, such as CRMs, property management systems, and marketing platforms. A well-integrated system enhances productivity and ensures smooth operation. It’s important to have an AI solution that indeed suits your business needs and is also easy to integrate into your current workflows.
  • Change management. Introducing AI into your real estate practice involves significant changes in operations and workflows. This would require effective change management strategies to ensure your team adapts smoothly. Training, clear communication, and ongoing support can help ease this transition and improve user buy-in.
  • Cost. Implementing AI can be cost-intensive initially. It’s essential to assess the cost against the anticipated return on investment after the successful implementation of AI. It is vital to establish clear metrics to measure the success of AI initiatives and ensure the investment aligns with your strategic goals. Except for that, it is highly advisable to get an experienced and trustworthy partner from the very beginning of the AI journey. This would eliminate the risk of spending too much of the budget for things not essential for business

Considering these factors not only prepares your real estate venture for successful GenAI implementation but also helps to mitigate risks and optimize resources. More importantly, to navigate the challenges of AI implementation, collaborating with an experienced partner with deep real estate expertise is essential.

AI real estate partners like Ascendix provide the top-notch support and specialized knowledge required to integrate AI specifically into your business workflows. From initial planning and data management to integration and optimization, Ascendix’s expertise ensures that your AI initiatives are executed successfully.

Secure your real estate business’s future by partnering with industry experts to leverage the full potential of generative AI.

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Ascendix – Your Expert in Embracing Generative AI in Real Estate

Ascendix, a pioneer in real estate technology, brings unique expertise and innovative solutions to the real estate industry. With extensive practical experience in real estate and proptech, as well as a proven track record in implementing AI technologies specifically for real estate, Ascendix is your ideal partner for driving transformative change through generative AI.

Extensive AI Expertise of Ascendix

Ascendix excels in creating AI tools tailored for the real estate sector.

Our existing expertise includes:

  • Intelligent document processing software. Automate and streamline the processing of real estate documentation such as lease agreements and contracts with AI.
  • AI natural language property search. Improve search functionality on your property listing platform with natural language processing.
  • Chatbots for optimized work processes. Deploy AI-driven chatbots to handle customer inquiries and support, improving efficiency and customer satisfaction.
  • Smart matching and recommendation engine. Implement advanced personalization with the power of AI for your users, whether for a property marketplace or a real estate CRM.

Significant Real Estate Experience

With over two decades of experience in delivering tailored real estate solutions, Ascendix has a deep understanding of the industry’s unique needs. Our experience spans from large enterprises to startups, ensuring high-quality, customized service.

Collaboration with Industry Leaders

Ascendix is trusted by major real estate players like JLL for developing custom real estate technology solutions. Our portfolio of over 300 clients worldwide showcases our diverse expertise and adaptability in meeting various business needs.

International Presence

With five offices around the world, Ascendix offers continuous connectivity and diverse skill sets. Our engagement in both European and US markets gives us invaluable insights into international trends and demands, helping us deliver solutions that align with global standards.

How Ascendix Can Implement Generative AI in Real Estate

  • AI Integration: We can seamlessly integrate AI into your existing or custom software solutions, optimizing functionalities to meet your specific business needs.
  • AI Document Abstraction: Simplify real estate paperwork management by integrating our AI-driven document management framework into your systems.
  • AI Consulting: Ascendix provides full consultancy services to help you select and implement the most suitable AI tools, whether it’s AI property valuation, natural language search, or AI-driven chatbots.
  • Technical Audit: We conduct thorough evaluations of your existing AI systems, offering recommendations and improvements to enhance performance and efficiency.
  • Custom AI Development: Our team of top-tier professionals can develop fully personalized AI software tailored to meet the specific requirements of your real estate business.
  • AI Engineering: Ascendix team of machine learning experts can train and develop the ML model based on your data and fully tailored to your business needs.

By choosing Ascendix, you gain a partner with unparalleled expertise and a commitment to driving innovation through generative AI.

Let us help you harness the power of AI to transform your real estate operations and achieve a new level of success.

GenAI in Real Estate FAQs

What is generative AI in real estate?

Generative AI in real estate uses advanced algorithms of AI and ML to generate new content like property descriptions, enhanced images, virtual tours, and personalized marketing materials from existing data. This technology streamlines operations, enhances customer engagement, and optimizes marketing.

How is generative AI used in real estate?

Generative AI in real estate is used to streamline the generation of new content by using existing data and user’s prompt. The common uses of generative AI in real estate are automating property descriptions, generating or enhancing images, creating virtual tours, and personalizing marketing communications.

How is GenAI used in real estate?

GenAI in real estate automates tasks such as creating property descriptions, enhancing images, generating virtual tours, and personalizing marketing materials. It uses data analysis to produce realistic content, improving efficiency and customer engagement.

What form of AI is most commonly used in real estate?

The most commonly used form of AI in real estate is machine learning, which includes tools for predictive analytics, generative AI in real estate, and chatbots that enhance client interactions, increase personalization, and boost operational efficiency.

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