Property sector to utilise AI in the next few years

Industry leaders in both real estate and PropTech view AI/Automation and Big Data as the two major gamechangers in the next three to five years.

The real estate sector will adopt AI in the next few years, according to the new survey carried out by the BPF and UKPA alongside REdirect Consulting | BTR News
The real estate sector will adopt AI in the next few years, according to the new survey carried out by the BPF and UKPA alongside REdirect Consulting.

The UK PropTech Association (UKPA) and the British Property Federation (BPF), supported by real estate property technology consultancy REdirect Consulting, have conducted a new survey highlighting that over 78% of industry leaders in real estate are looking to adopt Artificial Intelligence (AI) in the next few years.

The survey follows the recent merger of the UKPA and BPF (BPF-UKPA) and highlights the views of industry leaders across the sector. The survey respondents, comprising of real estate and proptech professionals, anticipate that cutting edge tools such as AI are expected to revolutionise how property is developed, managed and experienced.

“As the survey results reveal, it’s clear that technology and innovation is moving up the agenda, with the majority of the responsibility now with C-suite professionals and senior managers to take the lead, making sure that technology is part of the wider business strategy and engagement is maintained at all levels. The UKPA’s Tech & Innovation programme will play a pivotal role in supporting individuals in these positions to navigate digital transformation and will aim to break down barriers identified by creating an environment for closer engagement between proptech and property professionals at all levels throughout the programme. This will be critical to driving digital transformation and creating a culture of innovation within the wider industry.”

Sammy Pahal, Managing Director, The UKPA

82% of survey respondents saw technology as the key to reaching ESG goals, while a similar proportion also have a digital or technology strategy in place covering at least part of their business. The survey also found that ownership for driving technological innovation and change was at a senior level within organisations, showing the property sector is considering the opportunities for technology to enhance performance.

The survey revealed the many challenges and concerns faced by the market. For the proptech sector in the UK, the data shows that technology providers are struggling with the fragmented nature of the property industry (53%). They have also reported to struggle with achieving enough sales to grow their businesses (38%) and dealing with legacy systems and processes (36%).

“The challenge around legacy systems and processes can certainly be met through tech innovation and an increase in investment into the UK proptech sector. Investment in the sector has certainly seen an uptick over the past 12 months and as these survey results show, we can expect more property companies to adopt new technologies, such as AI to beat industry inefficiencies. As an industry, we stand ready to meet the challenges head on.”

Callum Board, Client Success Director, REdirect Consulting