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Showing posts with label proptech. Show all posts
Showing posts with label proptech. Show all posts

Sunday, November 10, 2024

Ai revolution in property industry

 

The AI market is projected to be worth RM1.77 trillion by 2027 AI’S ability to predict market trends will transform property valuations


The real estate industry, traditionally known for its complexity and high-stakes decision-making, is undergoing a radical transformation as artificial intelligence (AI) takes centre stage. With continued investment in AI, the sector is set to become even more efficient and responsive, redefining client relationships and setting new standards of excellence across the industry.

The real estate industry, traditionally known for its complexity and high-stakes decision-making, is undergoing a radical transformation as artificial intelligence (AI) takes centre stage. From property search and recommendations to valuation, management and maintenance, AI is revolutionising how professionals and clients interact with the real estate market.

The projected growth of the AI market, expected to reach Us$407bil by 2027, speaks to the increasing role AI is set to play across real estate functions, marking a pivotal shift in the industry.

In this new age, leading real estate firms like Jones Lang Lasalle Incorporated (JLL) are harnessing AI’S vast capabilities to streamline processes and make real estate more accessible, transparent and data-driven.

With the introduction of JLL’S groundbreaking AI platform, JLL Falcon’s Ai-powered solutions, it is clear that AI is reshaping real estate and elevating industry standards across the board.

One of the traditional challenges in real estate has been helping buyers find the right property to match their specific needs.

Ai-powered algorithms are aiding the search process by analysing vast amounts of data to provide personalised property recommendations. This is just one way AI is making the search process faster, more efficient and highly targeted.

Predictive analysis

AI’S ability to predict market trends is also transforming property valuation. Automated Valuation Models (AVMS) allow real estate professionals to access real-time property values, assess risk factors and identify market opportunities more precisely.

By leveraging predictive analytics, developers can even tailor property designs and amenities to align with customer demands.

These capabilities are invaluable, especially in fluctuating markets where rapid, data-backed decision-making can yield significant returns.

With Virtual Reality (VR) and Augmented Reality (AR), AI is further enriching the real estate experience by offering immersive tours of properties, enabling buyers to visualise spaces in detail without setting foot in them.

On the local front, many Malaysian property developers and real estate agencies have already integrated VR to allow prospective buyers to walk through properties virtually, gaining a comprehensive view of layout and design. This enhanced decision-making tool reduces time on the market and helps potential buyers envision their future homes with confidence, even from afar. however, the next stage of AI deployment is still in its infancy due to the technical expertise and high costs required for implementation.

As a result, it is currently restricted to larger players who have the necessary resources.

Operational efficiency

In property management, AI is proving its value by simplifying maintenance processes, reducing costs and enhancing tenant satisfaction. By integrating Internet of things devices with AI systems, property managers can monitor conditions like temperature, energy use and air quality in realtime. AI also facilitates predictive maintenance, scheduling repairs before issues become costly problems. This approach not only reduces operating expenses but also ensures a more seamless experience for tenants, as maintenance is managed proactively rather than reactively.

hence, it is little wonder that big real estate firms like JLL are pushing the industry further into the future with the launch of its JLL Falcon, a comprehensive AI platform designed to fuel innovation and provide data-driven insights. JLL Falcon combines JLL’S proprietary data with generative AI to help commercial real estate (CRE) professionals maximise returns while keeping costs manageable.

JLL Technologies chief executive officer Mihir Shah highlighted the platform’s far-reaching potential: “JLL Falcon will serve as the foundation for the continued innovation of products and services that help shape the CRE industry.” With capabilities such as natural language processing, semantic understanding and advanced analytics, JLL Falcon is helping CRE professionals make more informed decisions in realtime, powering applications ranging from tenant management to property analytics.

One of the most exciting aspects of JLL Falcon is its integration with JLL GPTTM, the first generative AI assistant crafted specifically for the CRE sector.

Launched in 2023, JLL GPTTM has already seen rapid adoption across JLL’S workforce of 47,000 professionals. By analysing curated datasets, JLL GPTTM helps generate insights that enable real estate professionals to offer customised solutions to clients.

Recent upgrades to JLL GPTTM include advanced image processing and a significant expansion of its working memory, making it a powerful tool for streamlining client consultations and creating data-backed strategies.

Other real estate players are following suit as such integration marks a step forward in enhancing efficiency across individual firms’ functions and setting a new industry standard for data-driven insights.

A global trend

The rise of AI in real estate is part of a broader trend where technology adoption is accelerating across the globe. In JLL’S 2023 Global Real estate Technology Survey, over 80% of occupiers, investors and developers shared plans to increase their real estate tech budget over the next three years.

As technology continues to evolve, Proptech solutions are paving the way for even greater AI integration, allowing functions like investment management, construction and facility operations to benefit from advanced analytics and predictive insights.

With such solutions, real estate professionals are now able to navigate industry challenges with greater confidence, using databacked strategies to deliver tangible value.

As AI tools’ analytics continue to drive value, the property industry is entering a new era of innovation. From creating more streamlined search experiences to supporting data-driven property management, AI is transforming how real estate is bought, sold, managed and experienced.

With continued investment in AI, the sector is set to become even more efficient and responsive, redefining client relationships and setting new standards of excellence across the industry. In this era of digital transformation, AI has integrated itself as a strategic partner, revolutionising how the real estate industry operates and paving the way for a smarter, more connected future.

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Sunday, August 2, 2020

‘It’s the right time to invest’

We found that data availability and transparency in the real estate sector is less than what we were used to when we were working in the financial industry and we are set to change that, ” says Red Angpow co-founder Erhan Azrai.


PETALING JAYA: Even as many consumers are cautious in purchasing high-ticket items in light of the Covid-19 pandemic, industry experts say sale of properties and cars have been rising since June.
Real Estate and Housing Developers Association (Rehda) Malaysia national council member Tony Khoo Boon Chuan said property sales had picked up since June, thanks to lower interest rates and the extension of the government’s Home Ownership Campaign (HOC) until 2021.

“No doubt buyers are guarded when buying high-priced products.

“But others who are not affected financially also realise the time is here to buy or invest in a new property, ” he said in an interview.

Apart from the HOC’s 10% discount on the selling price, Khoo said buyers also enjoy incentives such as stamp duty exemption, free legal fees and freebies such as home security and alarm systems, additional cabling, fittings and fixtures.

“There are so many choices with perks and benefits in the market now for buyers.

“This is indeed the right time to invest, ” he said.

HOC is a government initiative in 2019 aimed at supporting homebuyers, and it has been reintroduced in June under the Penjana economic revival plan.

Khoo noted that the government’s exemption of real property gains tax for Malaysians for disposal of up to three properties had made it easy for property sales in the secondary market.

“This will certainly encourage a lot of investors and buyers who are looking to upgrade, ” he said.

In the automotive industry, both new and used cars have seen brisk sales in recent months, with foot traffic at showrooms having increased tremendously.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said new car sales improved to 42,000 in June, compared with 22,000 in May, following the government’s announcement to remove the sales tax for certain categories of vehicles.

“Many car companies are offering lots of discounts and attractive hire purchase rates to entice customers, ” she said.

Although many car buyers are still cautious, she said premium cars purchases did not see much problem.

In fact, Aishah said MAA had readjusted the forecast of Malaysia’s total industry volume to 470,000 for this year, versus the earlier forecast of 400,000.

Federation of Motor and Credit Companies Association of Malaysia president Datuk Tony Khor Chong Boon agreed, adding that the used car market had also experienced tremendous growth in July.

“June sales were on par with full recovery following the recovery movement control order.

“July was very encouraging with 37,880 units sold, which is 25% higher than the same month last year, ” he said, adding that it was the highest monthly sales achieved in the last five years.

In contrast, he said used car sales only chalked up 303 units in April, when the usual monthly figure was between 30,000 and 35,000 units.

Khor said several factors contributed to the recent good vibes in the automotive industry, with measures introduced in the government’s economic revival plan shown to work.

“The moratorium has allowed some to have more money to spend, while the sales tax exemption has stimulated sales.

“Some buyers choose to get a car due to concerns about physical distancing and hygiene in public transport, ” he said, adding that used cars costing around RM30,000 were popular.

He noted that brisk sales of used cars resulted in a long waiting time for inspection at Puspakom, with a minimum wait time of at least five to seven days, and even 10 days or more at some locations.

When asked, Khor said it was hard to predict how long the good vibes would last because the real challenge would come when many borrowers are required to pay when the moratorium is lifted beginning October.

“To keep the market and economy stimulated, the government has to periodically come out with relevant measures and policies, ” he said.

Human resource executive CW Lim, who has been househunting for a few months, said he would make use of the discount and offers to buy a house in the Klang Valley.

“With the HOC, I’ll be able to save tens of thousand in downpayment, stamp duty fees and legal fees that could take me years to save up.

“Since my job and industry is not affected much, I hope I will soon own a house through these offers, ” said the 30-year-old from Klang.

Clinic nurse Farisha Azman, 29, who has been commuting to work from Subang Jaya to Shah Alam daily using the train, said she was in the process of buying a new car.

“Not having to worry about distancing on the train gives me peace of mind, ” she said.


Serving property investors’ needs

WITH the property market expected to remain soft over the next few months, tech startupRED ANGPOW Analytics is hopeful that property owners will be knocking on its doors for help to better manage their asset portfolios.

The company does online map-based real estate due diligence, feasibility study and price analytics.

“We foresee asset holders requiring good information to manage their portfolios. Data on past transactions that have been useful will no longer be enough.

“We found that data availability and transparency in the real estate sector is less than what we were used to when we were working in the financial industry and we are set to change that, ” says Red Angpow co-founder Erhan Azrai.

The startup generally has two groups of target clients, which are development-based organisations and individuals who use research to make decisions such as property investors, analysts, researchers, valuers and banks. Red Angpow’s services are not only useful for developers, but also related industries that are supporting real estate.

Erhan notes that clients are becoming savvier and are looking for more opportunities in the soft property market and they will need more relevant data to make their investment decisions.

“After the 1997-1998 financial crisis, the National Property Information Centre (NAPIC) was created to provide accurate and timely information on the property market.

“In the current environment, we believe the timing is right for an enhanced service.

“In the longer term, there is a need to increase the efficiency of the real estate market with a lot more data transparency.

“From the work that we have done so far, we saw that a lot of data is actually available, but it is unstructured and comes from multiple sources.

“Before we can compile all this data via an artificial intelligence means, we are doing the very basic first, which is getting the data cleaned, tagged and harmonised in a form that can be used easily by researchers, ” he says.

He adds that ensuring property investors have timely and accurate data has become even more important now as real estate loans make up a sizeable portion of total loans.

As of February 2020, Erhan notes that real estate loans in the banking system stood at RM836bil or 47% of total loans.

“This staggering amount needs better data to manage the portfolio, especially when industries are cutting jobs. A 10% downward correction will affect up to 5% of the total loan portfolio, depending on the age of the loan asset. That’s a huge amount.”

While the movement control order (MCO) has hindered some of its plans, Red Angpow has been fortunate to have raised enough capital to weather the course for the next two years.

“So, we are going to stay the course. The MCO allows us to hunker down and complete our work. We planned to launch a subscription for property analytics dashboard by July. But we are confident that we will hit the ground running once again after the MCO is lifted, ” he says.



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