As we catapult into 2024, the real estate industry is gearing up for some significant changes thanks to the rise in popularity of generative AI. With these advanced technical tools becoming increasingly integrated into our daily lives, the landscape of real estate is set to transform in ways we’re only just beginning to grasp. With that said, here are my five key projections for the upcoming year:
1. Better market forecasting with GenAI
One of the major benefits of the adoption of GenAI in real estate is its ability to enable investors and developers to make more informed investments, pricing strategies, and development decisions. Sophisticated algorithms can analyze large datasets, including historical trends, economic indicators, and consumer behavior, to forecast market trends with unprecedented accuracy. As this technology rapidly evolves over the course of the year, we can anticipate a surge in tools that can accurately forecast market trends, property valuations, and investment risks, leading to better, more strategic decision-making.
2. Smart building tech will become the norm
As people become more comfortable with integrating technology into their commercial buildings, we can expect to see a significant increase in buildings equipped with AI-driven systems in 2024. These technologies won’t just optimize energy efficiency, they will also focus on enhancing building management processes. For example, more AI-driven systems will be used to seamlessly manage a building's energy use or gather relevant building information to inform processes and procedures. Additionally, we could see AI assistants performing tasks like sourcing the real-time status of in-building tenant activities and information; facilitating onboarding and wifi access; helping to train management staff; and providing parking status, availability, and validation.
3. More AI-driven sustainability initiatives
In 2024, the spotlight will shine on more sustainable building practices driven by AI, like tracking a building’s emissions and reducing its carbon footprints. This shift is underscored by last years’ UN Climate Change Conference's focus on decarbonization and retrofitting, aligning with the Buildings Breakthrough's ambitious goal for near-zero emissions and resilient structures by 2030. We're also witnessing a crucial pivot in major cities like London and Paris, where office refurbishments are rising, driven by tighter environmental regulations and a commitment to decarbonize real estate portfolios. Looking ahead, we can expect a surge in renewable energy integration, an uptick in green certifications like LEED and BREEAM, and an increase in AI adoption to help meet environmental goals and regulations quickly and effectively. AI and data analytics will play a pivotal role in this, from tracking emissions to reducing carbon footprints.
4. Augmented facilities management
For facilities managers, GenAI will provide tools that will make it easier to keep buildings running smoothly, providing insights into equipment performance, predicting maintenance needs, and optimizing building operations. This will make for a smoother, more efficient management process, transitioning from reactive maintenance to more proactive building care.
5. Customized commercial spaces
This year, we can expect to see a big shift towards personalized commercial spaces. GenAI and IoT will enable buildings to adapt to the unique needs of each occupant or business, from customizable lighting and temperature settings to space utilization based on real-time data. Already buildings such as the Edge, Deloitte’s office in Amsterdam, is using AI and IoT to customize the lighting levels and temperature of their workspaces. They even have an app that tracks their progress in the company fitness center and alert the coffee machine to how they like their coffee. This level of personalization will not only improve user comfort but also drive productivity and efficiency.
As these changes begin to roll out over the course of the year, it's important to recognize the power of technology as a catalyst for improvement and innovation, particularly in real estate. Embracing these advancements will be crucial for those looking to stay competitive, sustainable, and relevant in a rapidly evolving landscape.