Press Release
Real estate firms should move faster on AI adoption, with new technology poised to transform sector
September 5, 2024
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Director, External Communications & PR
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Head of External Communications
The real estate sector should move faster on AI adoption, according to new research from global real estate advisor, CBRE. Its report, ‘What are the implications of AI for real estate?' explores the use of generative AI in business, and the significant value real estate firms can obtain from embracing new technology.
While the launch of generative AI has sparked fierce debate globally, few businesses, including those in the real estate sector, are yet to fully embrace AI use. However, with a $110 billion to $180 billion value for potential for the real estate industry, firms must move faster to embed AI into their business functions.
Real estate is a data-driven industry that can derive enormous value from generative AI. By introducing AI at all stages of the real estate life cycle, stakeholders including investors, developers and operators can build more efficient, sustainable operations. This will enhance asset values, enable smarter investment decisions and improve tenant experience.
CBRE’s research reveals the broad range of potential applications of AI in real estate. From informing property selection to modelling cash flows, there are a number of ways that AI could now, or in the future, help real estate stakeholders to enhance their internal business processes. Additionally, AI could dictate real estate requirements, enhance sustainability and optimise energy usage across many asset types.
While generative AI presents vast opportunities for the real estate sector, these do come with risk. The evolution and adoption of AI faces resource challenges, ethical concerns, and risks to users’ intellectual property. While legislation will go some way to reducing the macro risk around AI, it still needs to be established globally.
As a newer strand of technology that is constantly evolving, there is still uncertainty around the potential of generative AI. Despite this, the opportunity is clear. Generative AI could further revolutionise technology and will likely have transformational impacts on the real estate sector.
Generative AI presents a significant opportunity to the real estate sector, allowing investors, developers and occupiers to streamline internal processes and build more efficient, sustainable operations. Firms should move faster to take advantage of the significant value-add opportunities these new technologies could provide. Once all aspects of generative AI are understood and trusted, we could truly see it embedded across the industry.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2024 revenue). The company has more than 140,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.co.uk.