Artificial intelligence – implications for real estate

July 25, 2025

181 2 minutes read

The real estate industry as AI adopter

The PropTech sector has laid a solid foundation for AI integration into real estate applications

The real estate industry has begun to proactively embrace and adopt new technologies.. In JLL‘s 2024 Future of Work Survey, most companies (90.1%) expect to carry out corporate real estate activities, such as workplace strategy, occupancy management and lease administration, with AI supporting human experts over the next five years. Over 60% have already started piloting different AI use cases in their real estate functions.

This is powered by a maturing PropTech ecosystem. There are now technological solutions for almost every aspect of real estate functions, including investment management, design and construction, building and facility operations and portfolio management. A solid foundation has been laid for AI integration.

Globally, there are over 500 companies providing AI-powered services to real estate and already delivering value in terms of improved efficiency and cost-savings. Top use cases of AI include:

Document sorting and data standardization for portfolio data analytics and benchmarking
IoT data mining for automated facility management
Price modeling and prediction for investment management
Satellite image processing for asset valuation and risk management
Reality capture for construction site monitoring
Scheduling for construction and capital project
Recommendation and matchmaking for leasing and investment transactions

Generative AI applications in real estate are still in the early stages

Emerging use cases cover client communication assistance in leasing and property management (such as chatbots to handle tenant queries), floorplan and design generation and summarizing unstructured documents to create reports. More products are expected to come onto the market soon. Large Language Models, in particular, provide the ability to extract insights from vast amounts of text-based documents in real estate, significantly reducing the complexity of multi-lingual, multi-national operations.

However, most companies still lack a systematic approach to their AI implementation. The ability to develop actionable strategy is going to be the key determining factor for successful integration.

Early adopters of AI-enabled solutions are already seeing returns

Royal London Asset Management, a leading UK investment firm, experienced significant improvements in HVAC operations and energy efficiency in an 11,600 square meters commercial office building. By implementing JLL’s AI-powered Hank technologies, the firm has reached a record ROI of 708% and energy savings of 59%, reducing carbon emissions by up to 500 metric tons per year.