Approximately a third of professionals in Australia’s real estate sector foresee a “revolutionary impact” stemming from the integration of artificial intelligence (AI), yet a similar proportion have yet to initiate any AI adoption measures.
These findings emerge from the latest Yardi/Property Council of Australia technology survey, the fourth in an annual series that tracks technology attitudes and practices across investors, fund managers, developers, and consultancies, providing deep insights into technology adoption trends.
Michael Zorbas, Chief Executive Officer of the Property Council, asserts that the AI wave is inevitable and predicts it will substantially reshape the property sector for the better.
“The AI genie is out of the bottle. With automation, AI, smart building systems, and intelligent devices disrupting every facet of the real estate value chain, the status quo is shifting.”
Michael Zorbas, Chief Executive Officer of the Property Council
The global AI market, valued at US$196.63 billion in 2023, is projected to grow at a compound annual rate of 37.3% until 2030. Despite these growth prospects, the Yardi/Property Council of Australia technology survey reveals that not all real estate companies are progressing at a swift pace.
Of the 341 industry professionals surveyed in November 2023, 31% admitted to not having taken any steps toward AI adoption, with 62% believing that real estate lags behind other sectors in technology adoption. Only slightly over 40% were gearing up to harness AI, and 26% had already implemented AI systems.
The perception of AI’s impact varies across sectors, with 63% of respondents from financial institutions viewing AI as revolutionary compared to just 18% of fund managers. This discrepancy could be attributed to the finance sector’s early adoption of AI and automation for various functions, from fraud detection to customer service.
In parallel surveys conducted among Asian property professionals, a significant 56% of respondents from Mainland China and a staggering 67% from India anticipate a revolutionary impact on real estate, fueled by substantial investments and a burgeoning pool of AI talent.
Julian Kezelman, Innovation Director at Taronga Ventures, points to data management challenges, technical capability gaps, and ambiguity around key use cases as factors contributing to Australian real estate companies’ cautious approach to AI adoption.
Bernie Devine, Senior Regional Director of Asia-Pacific at Yardi, suggests that Australia’s real estate industry may be apprehensive about falling behind in the technology race.
“Only nine per cent of respondents believe Australia is at the forefront, in stark contrast to our Asian counterparts. However, the rapid advancement and implementation of AI and tech solutions are compelling companies to reevaluate their technology strategies to stay competitive.”
Bernie Devine, Senior Regional Director of Asia-Pacific at Yardi
Popular AI use cases in 2024, according to Forbes research, include responding to messages, financial inquiries, travel planning, and crafting social media posts. Yardi is already integrating AI into its platforms, with features like AI chatbots on Yardi Rentcafe simplifying lease negotiations, rent collection, and maintenance scheduling.
Alice Drew, Lendlease’s Head of Place Futures, emphasizes that while technology, including generative AI, won’t replace human roles, it will enhance productivity and creativity, extending beyond limitations.
In concluding, Devine underscores Yardi’s steadfast commitment to transparency, scrutiny, and regulatory oversight in the development of AI. It is imperative to tread cautiously in the integration of AI into real estate practices. Nonetheless, the survey reveals a prevailing sentiment among respondents recognizing AI as a pivotal force capable of enhancing service delivery and fostering the creation of superior living environments.
