AI in real estate: A game-changer, but not a replacement

COMMENT Artificial intelligence is making waves in every industry right now, and real estate is no exception. Whether it’s investment, acquisitions, planning, development or construction, AI holds massive potential to unlock new opportunities, streamline processes and help us work more efficiently. But here’s the thing: AI is a great tool but it’s not a replacement for the human expertise, intuition and creativity that drive success in this sector. I’ve been in the real estate industry for long enough to know that no amount of data or machine learning can replace the gut feeling that comes with experience. We need to remember that while AI can augment our decision-making, it can’t make decisions for us. I’ve had conversations about this before, and it’s something I keep coming back to: We shouldn’t use AI “just for the sake of it”. It’s about using it where it makes sense, to improve efficiency, make better-informed decisions and support what we do best. Finer details Take investment and acquisitions, for example. AI is already helping to streamline the process. It can analyse market trends, assess risk and process huge amounts of data in seconds. It’s powerful when it comes to standardising tenancy schedules, reviewing historical transactions and even creating preliminary business plans. But let’s be clear: AI still struggles with the finer details. It can’t grasp the unique characteristics of individual assets, nor can it interpret the nuances of local markets. And that gut feel I mentioned? You can’t programme that into an algorithm. Sure, AI can give us insights but final investment decisions still require human judgment. When it comes to planning, the UK’s notoriously slow and complex planning system has always been a challenge. But now AI is starting to change that. AI-powered tools can generate hyper-realistic 3D and 4D masterplans, making it easier for developers to present schemes to planning committees, investors and stakeholders. AI-generated visualisations and walkthroughs really bring developments to life. They make it easier for international investors, too, who can now better understand the vision of a project without being bogged down in technical blueprints. Additionally, AI is helping to predict planning obstacles, analyse local policy constraints and suggest design modifications that streamline the process. This is where AI truly shines as a supportive tool. In construction, AI is making a significant impact. Tools such as Autodesk’s Revit use AI to generate and test multiple design variations based on cost, materials and sustainability factors, helping architects and engineers optimise their designs. Tri7’s work on our latest Manchester office project – 55 Spring Gardens – is a great example. We used a Revit model that allowed us to efficiently test different development scenarios and spot potential constraints early on, saving time and improving decision-making. Enhance, don’t replace Building information modelling is another area where AI is playing a huge role. It helps predict design clashes, optimise layouts and improve project workflows. I’ve seen this in action and can tell you it’s a game changer for project management. By analysing historical data, AI can create more accurate schedules, identify potential delays before they happen and adjust timelines dynamically. It’s helping us stay ahead of the curve and create more predictable, cost-effective developments. A great example of AI enhancing, rather than replacing, human expertise is Valos – an AI-powered platform automating the writing of valuation reports. It automates the time-consuming aspects of report writing while incorporating human oversight to ensure accuracy and specificity. There’s no doubt about it – AI is reshaping our industry. It’s improving processes across the board, from acquisitions to construction and property management. But here’s the key takeaway: AI should never replace human expertise; it should enhance it. The most successful professionals in this sector will be those who embrace AI as a tool to work smarter, not harder. Now for the big question: How much of this article did I use AI to write? (Not much, I promise!) The point is, AI can be a powerful ally, but it still needs the human touch to truly make a difference. That’s the real secret to success in this ever-evolving market. Dan Green is a senior partner, Tri7