AI in Real Estate Global Market Report 2024

The ai in real estate market has grown exponentially in recent years. It will grow from $164.96 billion in 2023 to $226.71 billion in 2024 at a compound annual growth rate (CAGR) of 37.4%. The expansion observed in the historical period can be attributed to several factors, including advancements in market analytics and forecasting, the integration of chatbots and virtual assistants, innovations in property valuation and prediction, improvements in property search capabilities, and the automation of processes in property management.

The ai in real estate market is expected to see exponential growth in the next few years. It will grow to $731.59 billion in 2028 at a compound annual growth rate (CAGR) of 34.0%. The anticipated growth in the forecast period can be attributed to a focus on data security, the provision of personalized real estate services, an increased emphasis on market forecasting and trends analysis, improvements in customer interaction, and a growing demand for smart building solutions. Noteworthy trends expected in the forecast period encompass personalized customer experiences, the application of predictive analytics for property valuation, enhanced property search capabilities, the integration of virtual tours and visualization, and the automation of property management processes.

The anticipated growth of the AI in real estate market is closely tied to the increasing adoption of Internet of Things (IoT) devices. IoT devices are physical objects embedded with sensors, software, and connectivity capabilities that enable them to collect and exchange data over the internet. In the real estate sector, AI utilizes both AI and IoT devices for various applications such as market and leasing analytics, predictive maintenance, utility management, and enhancing the overall tenant experience. According to the State of IoT - Spring 2022 report by IoT Analytics in May 2022, there were 12.2 billion active endpoints in 2021, reflecting an 8% increase in the total number of IoT connections. The IoT industry is expected to see a further 18% growth, reaching 14.4 billion active connections in 2022. Hence, the increasing adoption of IoT devices is a key driver propelling the growth of the AI in real estate market.

The growth of AI in real estate is also influenced by the expanding internet penetration worldwide. Internet penetration, defined as the percentage of the total population in a given country or region that uses the Internet, plays a crucial role in shaping the adoption and impact of AI in the real estate industry. It empowers real estate agents with the ability to predict market trends, understand buyer preferences, and make informed decisions. According to a report published by the International Telecommunication Union (ITU) in July 2023, an estimated 5.4 billion people, constituting 67% of the world's population, were using the Internet in 2021. This marked an increase of 1.88% from 2022, with approximately 0.1 billion people coming online during that period. The growing internet penetration is thus contributing significantly to the growth of AI in the real estate market.

Technological innovations represent a prominent trend gaining traction in the AI in real estate market, with companies actively adopting new technologies to maintain their competitive positions. In September 2022, Restb.ai, a Spain-based computer vision provider for real estate, introduced the MLS Suite for Multiple Listing Services in AI in real estate. This suite comprises software tools designed to streamline MLS updates, offering AI-powered technologies to automate the listing entry process, enhance security for IDX and VOW website users, and enrich MLS data to increase its overall value. The AI Tagging function within the suite enables users to automatically extract information about property attributes, including property descriptions. Moreover, the suite includes features such as MLS Agent and compliance, automating the identification of any violations of MLS or association regulations, optimizing compliance operations.

Major companies operating in the AI in real estate market are strategically focusing on developing technological innovations, such as AI-driven price engines, to gain a competitive edge. An AI-driven price engine is a software system leveraging artificial intelligence (AI) and machine learning (ML) techniques to optimize pricing strategies. In December 2023, Housing.com, an Indian-based real estate search portal, launched an AI-driven Price Trend Engine. This innovative feature utilizes machine learning and artificial intelligence to provide users with critical pricing data and insights, empowering them to make informed decisions in property transactions. The Price Trend Engine is anticipated to have a significant impact on the real estate industry by increasing transparency and simplifying the processes of buying, selling, and renting properties.

In May 2021, CoStar Group, a US-based analytics and marketing services company, acquired Homes.com for $156 million. This strategic acquisition extends the CoStar Group's portfolio by seamlessly bringing together agents, buyers, and sellers for house sales, enhancing the online home-purchasing experience in real estate. Homes.com, a US-based online real estate portal, utilized AI and data analytics to provide property listings, home valuations, and market insights, reflecting the increasing integration of AI in real estate operations.

Major companies operating in the ai in real estate market report are Compass Inc., Redfin Corporation, REX Real Estate, Lexalytics Inc., Microsoft Corporation, Avaamo Technologies Pvt. Ltd., CAPE Analytics LLC, CognitiveScale UK Ltd., ComplyAdvantage, Hyro Technologies Inc., Entera SAS, Oracle Corporation, SAP SE, International Business Machines Corporation, Addepto, Keyway Technologies Inc., HouseCanary Inc., TRIGIGA Inc., GeoPhy Inc., Enodo Inc., Autohost Inc., Propic AI Inc., DEXMA Inc., Skyline AI Inc., Jones Lang LaSalle Inc., Engel & Völkers AG, Zillow Group Inc., Opendoor Technologies Inc., Knock Inc., Offerpad Solutions Inc., Homelight Inc., Reali Inc., Ribbon Home Inc., Orchard Home Loans Inc.

North America was the largest region in the AI in real estate market in 2023. The regions covered in the ai in real estate market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the ai in real estate market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Key AI technologies in real estate include machine learning, natural language processing (NLP), and computer vision. Machine learning is a branch of artificial intelligence that focuses on developing algorithms and models enabling computers to learn, make predictions, or decisions without explicit programming. Various AI solutions in real estate encompass chatbots, customer behavior analytics, advanced property analysis, customer relationship management (CRM), data analytics and visualization, lead generation and marketing, as well as property management, catering to diverse enterprise sizes ranging from large enterprises to small and mid-sized enterprises (SMEs). Applications of AI in real estate span design and planning, construction, and promotion and sales.

The AI in real estate market research report provides AI in real estate market statistics, including AI in real estate industry global market size, regional shares, competitors with a AI in real estate market share, detailed AI in real estate market segments, market trends and opportunities, and any further data you may need to thrive in the AI in real estate industry. This AI in real estate market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The AI in the real estate market includes revenues earned by entities by providing services such as property search and recommendation, price estimation and valuation, customer service. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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