Breaking Property News – 04/07/2023
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Top Companies Revolutionizing Real Estate with AI Solutions according to Wesley Snow CEO of Ascendix
According to Wesley Snow CEO of Ascendix and a poloymath on the topic, $97.9 billion of investment capital will pour into AI (Artificial Intelligence) powered real estate companies in 2023. Considering the unprecedented opportunities AI offers to real estate players, Wesley feels the investments will grow exponentially, as will the benefits. Think, everything from virtual tours, split-second property searches, chatbots that fully substitute human labour – all these are only a part of the AI potential, since there are more solutions to anticipate.
In the following comprehensive industry overview, CEO Wesley Snow looks at the companies that have already come to the forefront of AI in real estate software development. With many more coming through at speed to take advantage as the analogue world of real estate gives way to its digital counterpart.
What is AI in Real Estate?
AI in real estate encompasses advanced algorithms and machine learning models aimed to automate real estate processes and provide users with predictive analytics, chatbots, machine learning, AI-powered underwriting, image generation, and other solutions for data-driven decisions. AI real estate solutions like TRIGIGA, GeoPhy, Enodo, Autohost, and Propic automate buying, selling, and investing along with property management, saving time and adding efficiency to real estate transactions.
How Can Companies Utilize AI? AI Use Cases in Real Estate
Top Use Cases of AI in Real Estate
Lead Qualification & Buyer Intent Prediction
Tools like Zumper help agents identify clients that aren’t simply window shoppers but potential buyers. AI applications in real estate can help agents and brokers single out clients based on property preferences, which is especially useful if a broker specializes in a particular property type and has to narrow down their client search. Such a solution automatically qualifies leads by tracking their activities and predicting the ‘buying’ possibility based on the data gathered.
Advanced Document Pre-Population
Using AI in real estate helps users benefit from document pre-population first and foremost. For instance, when they’re creating a brochure and the tool automatically withdraws the property data from the company’s CRM. An AI-powered tool not only withdraws the data and systematizes it but can also build an accurate property description. Here, a nature language model rewrites and emphasizes the qualities of the property, limiting it to a particular number of characters. So, instead of editing a PDF or any other sort of document, users get high-quality descriptions in a matter of seconds.
Most real estate companies have got administrative personnel who have been taught to read leases and summarize them into abstracts. In case of AI, the contract is fed to the system, and the AI-powered model recognizes the text (even if it’s scanned or handwritten) and further summarizes the entire document into a single page.
Natural Language Processing & Chatbots
Chatbots can execute searches, book tours, and advise users on properties – all a user is supposed to do is feed the property description to the system. We’ll see later in the article how Realtor among other real estate players has developed this feature in its AI Dream Home. Instead of waiting for real-life brokers, clients can communicate with chatbots 24/7 which in this case are also 24/7 property listings information centers.
Natural language processing search is another part of AI in real estate industry. Instead of using rigid keywords and numerous filters, users can submit search requests in full sentences. Some plugins like Redfin are ChatGPT-based. In this case, a user installs the plugin, submits the property description text, and the tool looks for matches in the company’s database.
Accurate Loan Origination
What a fintech specialist does in days an AI-powered solution performs in minutes. An AI tool withdraws data like borrower information from different sources (when integrated with the proper systems) and assesses lender’s risks. It streamlines property evaluation and underwriting and automatically calculates borrower eligibility, reducing the risk of human error and estimating the probability of loan defaults with predictive analytics.
AI Real Estate Software Categories
Types of AI Real Estate Solutions
AI Solutions for Brokerage Activities
Locate AI
Type of Service: Brokerage intelligence software (2014)
LocateAI is a retail brokerage platform assisting retailers, landlords, and brokers in choosing a high performing location for their business based on the data gathered from 200M anonymous mobile devices.
Listing Copy AI
Type of Service: AI listing description generator
By utilizing a natural language processing technique, Listing Copy AI analyzes property data and generates ad copy that helps brokers gain a competitive edge with accurate listings.
Getfloorplan
Type of Service: 2D/3D floor plans and virtual tours generation
With 2D or 3D floor plans and 360-degree virtual tours brokers can create visually appealing property ads and boost the sales. All a user must do is feed a sketch to the system, and the app will convert it into a sophisticated floor plan that sells.
Centropo
Type of Service: AI video generation modeling
With Centropo, brokers get AI-generated videos for their listings. No need for long fill-in forms – all a user needs is to insert a property link and wait for the AI generation model to do its magic.
Restb.ai
Type of Service: AI-powered image analysis (2015)
The company offers a ‘visual insights’ solution for AI-powered property appraisals, inspections, and property marketing. With Restb.ai, brokers can manage property photos, auto-populate image alt tags, detect watermarks, and analyze property’s condition based on its images.
Particle Space
Type of Service: Real estate management platform (2015)
Particle Space offers AI-powered team, task, and asset management platform with its very own Tenant ChatGPT that enables flawless team cooperation and data-driven decisions.
AI and Real Estate Property Management
TRIGIGA
Type of Service: Space and asset management (2016)
Focused on the development of AI applications in real estate, particularly modern facility management, TRIGIGA offers an impressive number of tools that make AI-powered sustainable dynamic space planning possible.
AUtility
Type of Service: Property management platform
AUtility is an AI-powered property management platform that unifies building data and is used for creating digital twins and streamlined document management. The tool ‘merges’ building management, lighting and access control systems, providing companies with consolidated data and real-time insights.
Propic
Type of Service: AI-powered property management tool (2016)
The company offers two products: Propic Concierge, a conversational tool that handles customer enquiries, and Propic Insights, a data analytics solution with dashboards in subscription-style for property and sales management.
Autohost
Type of Service: AI-powered ethical guest screening tool for property managers in hospitality (2016)
Developed specially for property managers in hospitality, Autohost ethically screens guests, prevents identity theft and payment frauds as well as “bad” reservations with background checks and ID verification.
AI Real Estate Solutions for Appraisal and Loan Origination
Silverwork Solutions
Type of Service: Software robots and cobots for mortgage-related operations (2017)
The company specializes in the development of software robots and cobots for mortgage-related operations. By providing cognitive technology, Silverwork Solutions helps lenders reduce business-related costs and increase the quality of the loans.
GeoPhy
Type of Service: Automated valuation model (2014)
With two products, Evra and Apprise, the company helps real estate specialists with multifamily commercial real estate processes like deal origination, underwriting, property screening, and appraisals.
Quantarium
Type of Service: Automated valuation model (2014)
Quantarium offers a range of products like TerraIndex HPI (Home Price Index), TerraLook, and TerraPlot.
TerraIndex HPI is an automated valuation model built on the top of AI that helps users get market insights at different geography levels.
With TerraLook, users can identify the most sought-after property features, conduct property evaluations based on the property photos, and detect image violation.
Meanwhile, TerraPlot is a location intelligence tool that makes live market explorations possible.
CREX Capital
Type of Service: Financing and risk assessment platform (2022)
The unprecedented AI-powered risk assessment platform supported by Blockchain algorithms simplifies the entire property financing process with automated risk and property valuation reporting and automated KPI-driven matching.
Doma
Type of Service: Title management (2017)
Doma leverages machine learning algorithms by utilizing both public and private data and helping both real estate professionals close deals faster with a particular focus on title and Escrow management.
Enodo
Type of Service: Underwriting intelligence platform (2016)
Enodo is a place where AI and real estate underwriting meet. As an AI-powered underwriting platform for multifamily commercial real estate platform, it helps underwriting professionals define the property performance in a matter of minutes by leveraging the rent and expense analysis and providing comparables insights.
FoxyAI
Type of Service: Appraisal intelligence software (2018)
FoxyAI offers products focusing on automated property valuations. FoxyAI 360 Property Valuations and Model Library are visual property intelligence tools that allow users to score the property quality based on its visuals (detects property damage, determines architectural design style, etc.).
AI in Real Estate Investment
Entera
Type of Service: Residential real estate investment platform (2018)
Entera is a residential real estate investment platform that helps investors to make data-driven decisions when it comes to looking for an income-generating single-home property, buying, and operating it later.
SkylineAI
Type of Service: Investment platform, partially acquired by JLL( 2017)
SkylineAI is a platform where investors can analyze property potential and optimize portfolio strategies with predictive analytics and AI, all developed by Skyline’s engineering and data science teams.
Canoe
Type of Service: Investment management tool (2013)
Canoe helps users with the alternative investment data management, turning documents into actionable intelligence with automated data collection, extraction, and validation.
Kavout
Type of Service: Investment management and predictive analytics (2015)
Kavout successfully combines AI and machine learning in real estate investment. The company offers products that assist investors and financial professionals in portfolio building and assessment.
Kavout is currently working on the development of machine learning solutions for institutions, asset firms, and partnerships.
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Home Automation Solutions in Real Estate and AI
AI Home Solutions
Type of Service: Full home control (2018)
The company develops home automation solutions for home security, crime prevention, smart lighting, and climate control. AI Home Solutions makes sure your home control devices function as one whole, helping users ensure efficient resource management and save costs.
Josh AI
Type of Service: Full home control (2015)
As a home automation ‘Siri,’ Josh is a virtual assistant that powered by natural language processing technology (NLP) helps you control the house and assure comfortable surroundings with technologies like circadian lighting control and air quality sensors.
Frigate
Type of Service: Smart security system (2021)
Frigate allows users to control their security cameras with real-time AI object detection. Unlike traditional network video recorders, Frigate identifies what or who the motion is caused by. Another perk is the ability to integrate with home automation systems for smooth surroundings management.
IoBroker
Type of Service: Home management platform
IoBroker is a smart IoT open-source home management platform that integrates and manages all IoT devices. It runs on different operating systems on premises and is constantly updated as an open-source product.
Homebase AI
Type of Service: Smart building system (2019)
Homebase AI offers a diverse array of real estate artificial intelligence solutions for smart home management, including smart security systems, energy management solutions, and tenant management tools, all seamlessly integrated and managed on one platform.
Energy Resource Management Solutions in Real Estate and AI
Gridium
Type of Service: Energy saving software (2011)
Gridium specializes in smart building analytics and provides ‘efficiency-as-as-service’ for property and facility managers and owners that collects and analyzes the data from sources like utility meters. If your business can’t afford to install a smart building system, Gridium can install it for you with no upfront cost required as a part of the deferred payment model.
DEXMA
Type of Service: Energy intelligence software (2007)
In the intersection of artificial intelligence and real estate, Dexma offers products that help real estate professionals benchmark their sites, detect anomalies with AI algorithms, and generate sustainability reports. In the nutshell, the tool compares the results of the site performance with the ones in its database and suggests energy optimization measures.
Clir Renewables
Type of Service: AI-powered renewable source management (2016)
Clir is a renewable wind and solar energy management platform for operators and investors who want to track KPI, analyze the source performance and optimize it to the fullest.
ONYX Insight
Type of Service: Wind energy management (2016)
One of the wind industry pioneers, ONYX Insight monitors more than 14 thousand wind turbines globally in real time, combining unprecedented engineering while using AI in real estate, analyzing the tourbine performance and identifying potential tech hazards.
ClimateAI
Type of Service: Climate management system (2017)
ClimateAI is an enterprise climate resilience platform that underpinned by AI, machine learning, and multiple data points helps businesses manage weather-dependent supply chains and operations based on the historical data for each location.
AI in Real Estate Development and Construction
Doxel
Type of Service: Construction tracking (2016)
Doxel provides construction specialists with automated construction progress tracking. All a user has to do is walk through the site with a camera and later upload the images to the system – the tool will compare the images with the BIM and analyze them.
Dream Staging AI
Type of Service: Design intelligence software (2023)
One of the latest AI startups in real estate, the company offers a virtual staging product for construction design teams. With the help of Dream Staging AI, users can generate fully furnished interiors in minutes, a feature that definitely helps teams avoid project delays.
Interior AI
Type of Service: Interior design generation software
Like DreamStagingAI, InteriorAI is an image generation software used by designers or landlords considering DIY refurbishments. The only thing required is interior photos taken by users and later fed to the tool that offers a variety of interior styles.
Caidio
Type of Service: ‘Concrete’ construction company (2018)
One of the most distinctive AI real estate companies, Caidio offers solutions for the cement construction companies that have a goal to reduce gas emissions caused by concrete use. For instance, Caidio Water Content Optimizer ensures that the water-cement ratio is proper. Currently, the company is working on the development of eco cement and binder alternatives.
Versatile
Type of Service: Construction site data management (2015)
Versatile provides construction site data management hardware and software that once attached to the crane measures data points during the pick cycle and helps users understand the jobsite performance.
Deepblocks
Type of Service: Property development and construction site management platform (2015)
Deepblocks helps construction professionals with identifying development sites and conducting feasibility analysis. The tool has the largest zoning database in the US. Users can source both by parcel geometry and zoning data as well as explore the development with the use of 3D models.
CityBldr
Type of Service: Construction site development solution (2016)
Like Deepblocks, CityBldr assists construction specialists with site development management with the search engine, rent insights, and built-in CRM.
Conversational AI in Real Estate
Hyro
Type of Service: AI chat and voice interfaces (2018)
Hyro is an AI conversational assistant underpinned by NLA and computational linguistics. The tool automates 85% of repetitive tasks, reduces wait times, and fully substitutes support teams.
Localize
Type of Service: Concierge texting service (2015)
LocalizeAI (‘Hunter’) handles chats with potential buyers, books home tours for them, qualifies the leads, and connects buyers with agents.
RoofAI
Type of Service: Website virtual assistant (2016)
RoofAI is another virtual assistant that takes full control of customer website communication. The tool automatically qualifies leads, provides self-service support to customers, and personalizes the content for them.
STAN AI
Type of Service: Textbot and chatbot for property managers (2019)
Developed specifically for property managers, STAN answers resident questions 24/7 (maintenance requests, room booking, etc.). The tool is known for smooth third-party integration with other property management platforms and its compatibility with any community type.
Diffe.rent
Type of Service: AI leasing assistant, acquired by Apartment List in 2022
Diffe.rent has introduced Lea – an omni-channel AI leasing assisstant (email, text, voice, AI chatbots) that integrates with most CRMs, qualifies leads, processes requests, and books tours.
Real Estate Titans That Have Added AI to the Tech Stack
Realtor
The company has recently launched Dream Home Builder – the state-of-the-art feature developed in cooperation with Addition Technologies Inc. The real estate artificial intelligence helps users find their perfect house according to the property description they feed into the system.
Due to image recognition technology, the system generates a perfect property prototype and later matches the original property description with houses that resemble it the most.
Zillow
Zillow has simplified the house-hunting process by introducing ‘natural language search feature’ (currently for iOS users). Due to the model, users can enter their queries right into the search bar with no need for additional filtering.
Another feature is Neural Zestimate. Launched 2 years ago and powered by machine learning, the valuation model accurately predicts home value based on multiple data points.
Currently, the company is heavily investing in AI in real estate industry and plans to develop a single digital ecosystem that simplifies real estate experiences.
Redfin
Built in partnership with OpenAI, Redfin ChatGPT plugin is available to all ChatGPT users who are looking for a property. After installing and enabling Redfin ChatGPT, users can feed quick text inquiries to the plugin, get accurate property suggestions in a matter of seconds, and later book on-demand tours if needed.
Opendoor
Through deep learning algorithms, the company has been revolutionizing the selling-and-buying process for years. Opendoor uses real estate artificial intelligence to analyze the property quality, its location, identify property comparables and in the end, determine the current house price based on the hard data and how it might change in the future.
Compass
Two years ago, Compass announced the launch of Video Studio, an AI-powered tool that allows real estate agents to create virtual property tours. All a user has to do is go to the Compass platform, choose a video template and add their listing. Due to the image recognition mechanism, the tool identifies the key property attributes, matches them with the pictures and generates a video.
Rex
Rex is known as home to a variety of real estate technology brands. Recently, it has launched JobCall – a conversational AI in real estate for property management. JobCall assistant streamlines the communication between tenants and maintenance teams by transcribing calls, escalates tasks to the teams and integrates with other property management systems.
CoreLogic
One of the top names in the industry, CoreLogic has developed an image analytics feature as a part of its restoration job management platform – DASH. The AI-powered feature analyzes property photos and generates descriptions of the structures in them in the form of photo tags, alleviating the pain of dealing with loss documentation for restoration teams.
Trulia
Back in 2018, Trulia launched a new feature called ‘Trulia Neighborhoods.’ Thanks to the novelty, powered by AI-informed scoring system and 16 million data points, users can review potential locations (drone footage, photos, etc.) and make informed decisions.
Another feature is the company’s use of Apache Kafka. Trulia has built a real-time messaging layer on top of Kafka – a development that allows Trulia to provide its customers with real-time personalized experience.
Zumper
In 2021, Zumper introduced PowerLeads AI, a feature that analyzes renter’s behavior and predicts one’s readiness to sign a lease. The AI real estate solution provides better lead qualification by identifying renters who are more likely to rent immediately, hence helping agents close more deals and faster.
The company has also embraced the ‘GPT’ buzzword and introduced their very own Zumper ChatGPT plugin that connects users with Zumper listings based on the property research criteria.
Proptech Software Development Portfolio by Ascendix
Check out the overview of the proptech consulting and software development projects we delivered to our clients.
Impediments to Embracing AI in Real Estate
Impediments to Embracing AI in Real Estate
Limited Financial and Tech Resources
Adopting AI comes with indispensable endeavors like heavy investment in digital infrastructure, third-party integration, and staff training, especially for smaller businesses. There is no direct information on the average costs associated with AI adoption in real estate, since each case depends on the company’s specifics and the scale of the processes to be AI-powered. However, the Delloitte research suggests that 68% of companies (around 3000 companies paricipated in the research) that have invested in AI adoption have spent $20 million during the last year in total.
The good news is that companies that have baked AI into the already existing products only ask for add-on fees – which means that businesses with limited budgets can opt for off-the-shelf AI-powered products rather than custom development. Meanwhile, other AI enterprises (for instance, we’ve mentioned Gridium) have developed deferred payment models. And because artificial intelligence and real estate will keep merging, we can expect such a model to become more common in the AI real estate market.
Third-Party Integration
Most digital products were created before AI in real estate industry became a sensation. Having been developed with no AI convergence in mind, such products might not integrate well with AI technologies. And while automation providers are ensuring the new software is powered by AI or compatible with other AI tools, companies can solve their current integration problems by reaching out to real estate software developers that’ve already accumulated a wealth of experience.
And we are proud to be one of those companies. At Ascendix, we can audit and customize your web and mobile applications, integrate AI into the company’s legacy systems, train your staff on how to use it and ensure post-development tech support.
Data Quality and Privacy
AI heavily relies on data, and the higher the quality of the data points is, the faster the AI model learns to make accurate and reliable predictions. But the biggest chunk of data utilized by AI is personal data (everyone remembers the latest ChatGPT scandal when the bug occurred in the system and caused the data breach of 100 million users).
Hence, the ethical question is which data protection regulations should be introduced so the sensitive information doesn’t easily fall into the hands of hackers and is only accessed with the owner’s permission.
Meanwhile, there are already security precautions like data anonymization, encryption, and secure data storage, and we believe that the number and potential of digital security tools in real estate and AI will only grow in the future.
How Can Ascendix Help with Realizing Your AI Potential
During the last two decades in real estate, we have encountered and learnt from our own mistakes, so we can guide you through the software development process and help you avoid the same pitfalls.
So, why Ascendix?
- We’ve got 10+ years expertise in custom proptech application development services and are authors of 17 proptech CRE products;
- We’ve been in commercial real estate since 2004 and have been developing in-house solutions for top players in real estate like Colliers and JLL;
- We’ve got a global delivery hand with 5 international offices – a feature that can optimize your budget.
Real estate giant Landsec, partners with Nexer Enterprise Applications UK to transform its operations
Landsec, one of Europe’s largest real estate companies, is working with Nexer Enterprise Applications UK to streamline its digital operations and unlock further growth. As a digital transformation specialist, Nexer will replace Landsec’s technology systems with Microsoft Dynamics 365 to improve operational efficiency and provide a better experience for employees and customers.
By leveraging Dynamics 365 Finance, Project Operations and Supply Chain Management software, Landsec will be able to gain real-time insights into its financial performance, have full visibility of its supply chains, and optimise project management, with enhanced progress tracking and resource management.
To ensure the technology is tailored specifically to real estate business operations, Nexer will also work alongside Yavica, an independent software vendor that specialises in the real estate sector, to create a fully functional platform.
Mairs, finance transformation director at Landsec, said: “At Landsec, we’ve been wanting to really drive towards creating a digital platform for the future. After a rigorous selection process, we’re confident that Nexer and Yavica will lead us on the next important step to modernise our financial operations.
“Nexer’s depth of expertise and experience and Yavica’s IP and industry knowledge are key assets in enabling us to make this a success, and we are looking forward to working together to deliver this world-class, highly integrated digital platform.”
Martin Burden, UK commercial director at Nexer Enterprise Applications UK, said: “At Nexer, we understand that every business is unique, and our partnership with Landsec is a testament to this. By collaborating with Yavica, we’ll be delivering a highly tailored and truly transformative solution that will not only improve operational efficiency but will also enable Landsec to stay ahead of the curve in an increasingly competitive and fast-evolving industry. We’re proud to partner with Landsec on this journey, and we look forward to further cementing their success across Europe.”
Andrew Stanton Executive Editor – moving property and proptech forward. PropTech-X
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