Introduction
Artificial Intelligence (AI) has quickly moved from being a futuristic concept to a practical tool across industries, and real estate is no exception. At its core, AI refers to computer systems capable of learning from data, identifying patterns, and performing tasks that typically require human intelligence. From chatbots to predictive analytics, AI is already reshaping how businesses operate.
In real estate, the uptake of AI has accelerated over the past few years. Globally, the AI in real estate market is projected to exceed USD 300 billion in 2025, with rapid growth expected in the years ahead. This surge reflects how AI technologies are increasingly being applied across the property lifecycle—from valuation and marketing to property management and investment analysis. For real estate firms, AI offers both opportunities and challenges, and understanding its trajectory is essential for anyone looking to stay competitive in the industry.
To see how we intend to navigate this new technology, scroll down to read: Our Position on AI in Commercial Real Estate.
The Path Forward: Likely Progression of AI Adoption
The adoption of AI in real estate is likely to follow a layered path, with incremental advances that gradually reshape the industry. In the near term, we can expect to see broader use of AI in property valuations, predictive analytics, and forecasting. By combining traditional data sources with new streams such as satellite imagery and consumer behaviour, AI models will refine how markets are understood and where opportunities are identified.
Marketing will also continue to evolve, with AI increasingly used to generate property listings, enhance photos, and deliver more personalised recommendations to buyers and tenants. Meanwhile, property and facility management will benefit from predictive maintenance systems, where AI can identify issues before they become costly repairs.
Another area poised for growth is AI-enabled client interaction. AI reception systems, voicemail tools, and virtual assistants are already being trialled in some agencies. These tools can answer routine queries, book appointments, or manage after-hours enquiries. While convenient, they also raise questions about whether they can—or should—replace the human warmth and trust that is central to real estate relationships.
Over time, as AI systems become more advanced and integrated, we can expect them to play a larger role in streamlining business operations. However, the extent to which they replace or complement human professionals will depend on how businesses choose to adopt them.
The Benefits of Adopting AI in Real Estate
The potential benefits of AI in real estate are significant. Perhaps the most immediate is efficiency. Many back-office functions—from document processing to compliance checks—can be automated with AI, reducing time-consuming manual tasks. This not only frees up staff to focus on higher-value work but can also speed up processes and reduce errors.
Marketing is another key area where AI adds value. Generative AI tools can craft listing descriptions, create virtual staging, and even generate tailored ad campaigns that target the right audience at the right time. By analysing large amounts of data, AI can also provide insights into what buyers or tenants are likely to respond to, helping agencies fine-tune their strategies.
In property management, AI can improve both tenant satisfaction and cost control. Systems that predict when equipment is likely to fail, or optimise energy usage across a building, can lower expenses and improve sustainability outcomes. For investors, AI can sharpen decision-making by forecasting rental yields, capital growth, and market trends with more accuracy than traditional methods.
At its best, AI doesn’t replace human expertise but enhances it, allowing professionals to deliver better, faster, and more personalised service.
The Downsides of Adopting AI in Real Estate
While the opportunities are enticing, there are also significant downsides to consider. Data privacy and security are among the most pressing concerns, noting that any data input to AI becomes owned by that AI and is not subject to our local privacy laws. Real estate transactions often involve sensitive financial and personal information, and improper use of AI could expose this data to misuse or breaches.
Another risk is overreliance on AI tools. While algorithms can analyse vast datasets, they are not infallible. There have already been high-profile cases where AI has produced errors. For example, an Australian agency’s AI-generated property listing incorrectly cited local amenities, highlighting the dangers of unchecked automation. Inaccurate or misleading content can harm a firm’s credibility and erode client trust.
There is also the risk of losing the human touch. Real estate is fundamentally a relationship business, built on trust, empathy, and personal connection. An overuse of AI receptionists, voicemail, or chatbots could alienate clients who expect genuine human interaction when making significant financial and emotional decisions.
Finally, regulatory and ethical challenges loom. Questions remain about who is accountable for AI-generated errors, how transparent algorithms should be, and whether smaller firms risk falling behind larger competitors with greater resources to invest in technology.
Our Position on AI in Commercial Real Estate
At our commercial real estate agency, we recognise both the promise and the pitfalls of AI. We see value in adopting AI in targeted, limited ways—particularly where it can streamline back-office functions, improve efficiency, and allow us to focus more on delivering exceptional service to our clients.
However, we are equally clear on what AI will not be used for. It will not replace the personal, human-to-human interactions that lie at the heart of real estate. We believe that empathy, understanding, and relationship-building cannot be replicated by a machine. For us, AI is a tool to support people, not a substitute for them.
We are also committed to protecting client privacy. Any AI adoption will be carefully managed to ensure that sensitive information is safeguarded. Transparency, accountability, and integrity will guide our use of these tools.
By striking this balance, we aim to leverage the best of what AI offers while staying true to the values that define our business.
Conclusion
AI is set to play a growing role in shaping the real estate industry. From improving efficiency and marketing to enhancing property management and investment analysis, its potential is vast. Yet, it also brings real risks—privacy concerns, errors, and the danger of losing the human connection that clients value most.
The future will likely see AI become a standard part of the industry, but the firms that succeed will be those that adopt it thoughtfully. For us, that means using AI as a support tool, not a replacement for people. In real estate, trust and relationships are irreplaceable, and no algorithm can match the reassurance of a genuine human connection.
AI’s role in real estate is not about replacing people—it’s about empowering them to do their jobs better. And that, ultimately, is where its true value lies.
