The Indian real estate market is in a really confused state right now around the early end of 2018. There is a peculiar situation that of the demand being there and the supply being also very much there but a gigantic mismatch between the two. There is a crying need to address the issue in a scientific manner especially since the numbers are overwhelmingly high and big data analytics, Artificial Intelligence (AI) and Machine Learning (ML) must all come to the fore to quickly assess the situation, provide a solution and also create a more robust mechanism to predict numbers in the future so that such a huge deadlock doesn’t happen again.
Well, simply put – the real estate experts, the housing developers, the real estate brokers and the consumers of course all need one fountain of research based perennial analytical data source from where they could all derive the guidance to taking the right real estate action.
For example, a real estate developer who is planning to develop some kind of real estate project in Pune needs to have access to a data map that clearly tells him the kind of real estate development that the specific micro location requires based on its existing and future development. The developer should also be able figure out the demography of the potential buyers and to gauge the absorption capacity of the potential buyers. Along with this the builder should also know beforehand the average budget and preference of the actual buyers and the approximate number of clients that could buy into his project.
So essentially before starting any real estate project, the developer needs to have complete clarity, as though received through clairvoyance, about what to build, how much to build, what size to build, what type to build, when to start and when to finish and realize the maximum potential of a piece of land without having anxiety attacks about marketing the project. In essence the developer should create a super smooth transition from the raw stage to the finished stage without having to worry about the sales or without having the fear of not being able to sell. This would be because he would clearly know beforehand the exact details of his buyers beforehand.
Well, going further let us apply the same situation to each and every stake holder in the real estate conundrum. Every buyer, every seller, every real estate agent and every real estate investor would have complete clarity and a picture of the future growth or slow down or windfall with the help of artificial intelligence in real estate.
I believe that artificial intelligence in real estate is already started to happen and one day, if we really put our natural intelligence to good use, it will evolve to a level where the above scenario could come true to a very large extent. Our team at PropertyCrow.com is trying to build a real estate platform where we can really harness the huge potential that AI and MI can bring to Indian real estate industry and solve many problems that besets this mammoth giant.
Artificial Intelligence
Artificial intelligence and machine learning can revolutionize the Indian property market. Machine Learning is an evolving branch of Artificial Intelligence that understands algorithms which are capable of automatically gathering knowledge from data and then providing almost accurate forecasts based on the available data.
Applications of AI in Indian Real Estate
Along with AI & MI there are real estate ecosystems that are already using Natural Language Processing (NLP) – example Amazon Polly, a Text-to-Speech service that takes the help of advanced deep learning technologies to synthesize speech making the voice sound real and human.
Also Natural Language Generation (NLG) – an example of AI wherein NLG produces text from computer data and then translates and converts the computerized data into natural language representation is another tool being used in the real estate industry now.
Let us look at some potential and existing applications of AI in Indian Real Estate:
1. Determine a fair market value of a given property
Forecast the demand of a property based on various parameters like location, characteristics, age, type, etc.
Work out the a fair valuation of any given property using its location, age of construction, living area, type of structure, size of rooms, design, number of rooms, number of bedrooms and bathrooms, energy friendliness and the overall life quality in the given location. Other factors including type of property, travel time, mode of transports available, cost of living, demand & supply, distances from key facilities like station, hospitals, schools, etc. could also be considered.
2. Automatic property Document Scanning
One major problem with Indian real estate is the lack of proper documentation especially for the old ones. If your property AI could help scan documents and pin point gaps, irregularities and offer solutions in quick time for any given property, it would be a boon to sellers and buyers alike.
With the help of natural language processing (NLP) this is possible and the need for manual intervention could be minimized.
3. Forecasting Short Term and Long Term Value of any property
This could help investors take decisions based on actual logical parameters when it comes to investing in a property.
4. Property Image Identification
This feature could help a buyer or searcher search and find similar properties to compare and take decisions.
5. Identifying customer Needs
With the help of NLP and analysis of a user’s behavior, this feature can help understand the need of a specific customer. This could help the company deliver a more suitable and customized option for the client.
6. Property Profile Blending
This feature with the help of Machine Learning can perform a detailed analyisis of previous real estate deals and transactions and then determine similar offers and options. This would assist real estate owners, property consultants, property developers to better understand any given property parameters to offer suitable options.
7. Analyzing Property Security Portfolio
Mortgages and home loans always carry a risk. This feature can minimize the risk by analyzing past behavior, spending pattern, income generation, income growth and then forecasting repayments in the case of a property loan.
8. Understanding Real Estate Markets
This feature would be crucial for any real estate investor who is keen to invest in alien markets. With the help of MI & relevant tools, the system can classify and rank real estate locations in terms of their past performances, future growth possibilities, infrastructure developments (both current & future), political scenario, education infrastructure and other social life signals. Essentially ER Trees (a branch of MI) will make use of all these data and come up with rankings instantly for anyone to take an informed decision with regards to real estate investment in any given location.
9. Marketing Focus Assistance
As a realtor, one of the biggest challenges is to narrow down on a marketing formula both in terms of type (online, offline, social media, etc) and also choosing the right location, right audience, etc. AI in real estate can assist to identify the right media, right demographics, etc. to reach and convert customers and to reduce the cost of customer acquisition. Every real estate professional worth his salt would love to have this facility to enable him or her to save time, money on real estate marketing.
10. Customer Language Preference
Wouldn’t it be great if you could understand the best language and tone suitable to communicate with the customer who has visited your website? Well with Machine Learning, a real estate professional can do so and thereby increase chances of conversion of a deal.
11. Property Lead Management Techniques
AI can help determine the selling potential of a particular listing so that a real estate agent can delegate resources in terms of priority towards the same. In a similar way it can predict the closure of a particular property demand for the real estate consultant to work on those most likely to close on an urgent basis.
12. Buying and Selling Potential
If you are a real estate agent, you can with the help of Machine Learning, recognize potential buying or selling clients based on the analysis of the clicks on your online ads and on the purchase pattern of those individuals.
13. Chatbots for real time assistance
Real estate developer websites as well as property consultants’ websites have the Chatbot features with varying degree of sophistication. The aim is simply to help and guide a real time visitor with real time information and solution. This ensures that the website visitor is engaged qualitatively and at the right time to increase the chance of converting the same interaction into a deal.
14. Property Deal Identification for real estate investors
AI can help Real estate and property Investors to find real estate deals and opportunities that are best aligned with their budgets and investment goals. This would help investors save time wasted in scouting scores of irrelevant property investment proposals and also grab right real estate investment opportunities at the correct time.
Of course there are many more applications for artificial intelligence and machine learning to positively affect Indian real estate market and PropertyCrow.com is trying to implement them effectively on our property platform.
