{"id":102,"date":"2024-04-17T03:41:17","date_gmt":"2024-04-17T03:41:17","guid":{"rendered":"https:\/\/www.yardi.com.au\/?p=303967"},"modified":"2026-08-06T03:52:59","modified_gmt":"2026-08-06T10:52:59","slug":"ai-awakening-artificial-intelligence-is-advancing-but-are-real-estate-companies-ready","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/apac\/ai-awakening-artificial-intelligence-is-advancing-but-are-real-estate-companies-ready\/","title":{"rendered":"AI awakening: Artificial intelligence is advancing, but are real estate companies ready?"},"content":{"rendered":"\n

Around a third of Aotearoa New Zealand\u2019s real estate professionals believe artificial intelligence will have a \u201crevolutionary impact\u201d on the property industry. But the same number again have not taken any steps to implement AI.<\/p>\n\n\n\n

This is the key finding from the third instalment of the Yardi\/Property Council NZ technology survey<\/a>, an annual series that tracks the attitudes and practices of investors, fund managers, developers and consultancies, and offers deep insights into technology adoption.<\/p>\n\n\n\n

The global AI market size<\/a> was valued at nearly US$200 billion in 2023 and is projected to expand at a compound annual growth rate of 37.3% between now and 2030. However, not every real estate company is moving at an accelerated pace, the Yardi\/Property Council NZ technology survey reveals.<\/p>\n\n\n\n

The survey, completed voluntarily by 53 industry professionals in November 2023, found 29% of respondents hadn\u2019t taken any steps to adopt AI and 66% thought real estate, in general, was lagging other sectors for technology adoption. Just over a quarter (27%) had begun implementing systems. Why is this?<\/p>\n\n\n\n

Methodical moves<\/strong><\/strong><\/p>\n\n\n\n

Julian Kezelman, Innovation Director at Taronga Ventures, Asia\u2019s leading real estate technology investor, says there are various explanations for why New Zealand real estate companies are taking a wait-and-see-approach to AI. These reasons include \u201cissues with data management, gaps in technical capability and a lack of clarity around key use cases\u201d.<\/p>\n\n\n\n

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Julian suggests it is \u201csensible\u201d for the sector to \u201cwade into the possibilities of AI relatively slowly\u201d. With a strategic approach, real estate companies can ensure they have the \u201cbuilding blocks in place\u201d to determine the highest and best use cases for the technology.<\/p>\n\n\n\n

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<\/p>\n<\/div>\n<\/div>\n\n\n\n

Property law specialist and Partner at Wynn Williams, Jenna Adamson, agrees.\u201cI\u2019m inclined to think AI\u2019s impact is more \u2018evolutionary\u2019 rather than \u2018revolutionary\u2019,\u201d she says.<\/p>\n\n\n\n

AI has \u201caccelerated rapidly\u201d \u2013 both the technology itself and the industry\u2019s \u201cawareness and appreciation,\u201d Jenna says. \u201cBut, unless it\u2019s in line with an organisation\u2019s values or purpose, it\u2019s not necessarily about being an early adopter or leader in this space and more about being a fast follower or smart adopter of the proven technologies.\u201d<\/p>\n\n\n\n

Sam Stewart, Manager \u2013 New Ventures at property and construction specialist CalderStewart, isn\u2019t concerned either. \u201cLow adoption rates of tech represent an opportunity for New Zealand operators. If the market doesn\u2019t intend to adopt these solutions, it could be a key point of differentiation for those who want to jump in wholeheartedly,\u201d Sam observes.<\/p>\n\n\n\n

The path to progress<\/strong><\/strong><\/p>\n\n\n\n

The perceived impact that AI will have on the property sector varies depending on the vantage point. For instance, 63% of respondents from financial institutions see AI as revolutionary compared to only 18% of fund managers.<\/p>\n\n\n\n

\u201cThe finance sector has been an early adopter of AI and automation for everything from fraud detection to customer service, and this could explain the optimistic attitude,\u201d says Yardi\u2019s Senior Director, Bernie Devine.<\/p>\n\n\n\n

He suggests similar surveys in other markets show where the trendline is pointing. Yardi\u2019s companion survey of Asian property professionals found 56% of respondents from Mainland China \u2013 where investment in generative AI has exploded \u2013 expect a \u201crevolutionary impact\u201d on real estate. In India, where tech companies are positioning the country as the largest pool of AI talent on the planet, a massive 67% expect radical change.<\/p>\n\n\n\n

\u201cAI will drive digitisation at speed, as it exposes data gaps and exacerbates pain points due to poor processes. Despite this a large proportion of the industry appears to be relying on old systems that are ill-equipped to meet new challenges,\u201d Bernie says.<\/p>\n\n\n\n

Yardi is already incorporating AI into its platforms. Yardi Rentcafe, for instance, features a chatbot that can communicate with prospective build-to-rent customers, do the legwork for leasing agents so they can spend more time forging human connections with qualified customers.<\/p>\n\n\n\n

\u201cWhile there is no question real estate companies must proceed with caution, most respondents to our survey acknowledged AI as a game-changer that can help them deliver better services and create better places for people,\u201d Bernie notes.<\/p>\n\n\n\n

Property Council New Zealand Chief Executive, Leonie Freeman has several \u201cclear calls to action\u201d for New Zealand\u2019s property sector \u2013 chief among them the need for cyber vigilance and a strategy for artificial intelligence.<\/p>\n\n\n\n

\u201cIt is tempting for leaders to be dazzled by exciting new developments like AI. But the findings from our latest survey suggest property companies should start with the basics. Without that right data foundation, the opportunities of AI may be elusive,\u201d Ms Freeman concludes.<\/p>\n\n\n\n

For more insights, download Yardi\u2019s Digital Transformation Report 2024<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Around a third of Aotearoa New Zealand\u2019s real estate professionals believe artificial intelligence will have a \u201crevolutionary impact\u201d on the property industry. But the same number again have not taken any steps to implement AI. This is the key finding from the third instalment of the Yardi\/Property Council NZ technology survey, an annual series that […]<\/p>\n","protected":false},"author":3092,"featured_media":373,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_s2mail":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3719,3728,3729],"tags":[],"class_list":["post-102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-commercial","category-mixed-portfolios"],"acf":[],"yoast_head":"\nYardi Blog<\/title>\n<meta name=\"description\" content=\"Around a third of Aotearoa New Zealand\u2019s real estate professionals believe artificial intelligence will have a \u201crevolutionary impact\u201d on the property\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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