How AI Is Changing the Real Estate Industry in 2025?
The AI revolution is underway, impacting every industry and every sphere of our lives. While real estate relied on traditional methods for a long time, AI adoption by the industry has recently accelerated. It is currently finding more and more applications and changing how properties are bought, sold, rented, marketed, and managed. According to the Business Research Company analysis, AI in real estate market size will grow from $222.65 billion in 2024 to $303.06 billion in 2025 at a compound annual growth rate (CAGR) of 36.1%. From more accurate property valuations to smarter property management and even personalized client interactions, AI is reshaping how business is done in ways we couldn’t have imagined just a few years ago. Businesses that manage to harness AI capabilities get a competitive advantage over those businesses that don't.
In our blog post below, we'll explore how AI transforms real estate in 2025. We will discuss popular AI applications in real estate with real-life examples, including SaaS solutions and platform-specific innovations that professionals and entrepreneurs can adopt and inspire from.
What are specific AI applications in Real Estate?
AI-Powered Property Valuation
Traditionally, property valuation was reliant on physical inspections and manual market trend analysis, which made the process time-consuming and dependent on the experience of the appraiser, often prone to bias or errors. However, the introduction of AI-based analytics offers a new level of accuracy and efficiency in property valuation. By leveraging machine learning models, it became possible to analyze extensive datasets and deliver accurate and unbiased valuations to buyers and sellers within seconds. The analyzed data can cover historical pricing trends, current market trends, property conditions and size, neighborhood development, demographic data, and even crime rates. As a result, AI-powered property valuation delivers unbiased, accurate pricing that benefits both buyers and sellers. It ensures that properties are not overvalued so buyers can avoid overpaying for properties and not undervalued so owners can maximize potential profits while minimizing the time on the market. This AI-powered approach enhances decision-making and minimizes all the risks associated with subjective appraisals.
VeroVALUE is a platform that offers AI-driven property valuations. It utilizes advanced predictive technologies and comprehensive data analysis to deliver accurate and reliable property value estimates across the United States. Popular real estate website Zillow has its proprietary AI-driven property evaluation "Zestimate" tailored to its platform to provide instant property valuations based on public and user-submitted data. Redfin also uses machine learning models to provide accurate home value estimates based on thousands of data points.
Smart Property Management
Landlords and property managers can use AI-driven tools to automate numerous routine and time-consuming tasks associated with property management that used to require human intervention. These tasks range from maintenance requests and rental payments to tenant screening. For instance, AI-driven platforms can prioritize, respond to inquiries from tenants, and even screen them. They can analyze potential tenants' rental histories, credit scores, income verification, and even behavioral patterns to determine their reliability and minimize the risk of property damage or non-payment of rent. AI can also manage lease payments and maintenance issues. For instance, AI-powered systems can prioritize maintenance requests based on urgency and automatically schedule them with service providers. By automating these processes, AI allows managers to focus on the higher-level strategic aspects of their role, such as tenant relations and property improvements.
Popular property management software like AppFolio and Buildium use AI to automate rent collection, schedule maintenance, and analyze tenant behavior. They are designed to streamline operations for real estate professionals across various sectors, including residential, commercial, and community associations.
Optimized property search results
Traditionally, people looking for the property had to search for it manually on different platforms using available filtering options like location or price, and the whole process was very time-consuming. AI has revolutionized property search platforms by learning user behavior and preferences and providing personalized recommendations of properties that meet stated criteria and preferences. Using machine learning algorithms, AI can determine what users truly desire, even when they do not explicitly state it or are unsure how to express it. Whatever the users’ priorities are, if it's budget, location, or specific features like a large backyard or open floor plan, AI-driven platforms will fine-tune property search results to show users the most relevant listings, enhancing the overall user experience, saving time, and leading to quicker transactions.
RealScout provides AI-driven property search features that agents can subscribe to and integrate into their existing websites via search widgets, offering clients an interactive map and detailed filters (e.g., price, beds/baths, property type, or custom-drawn boundaries). Clients can save searches, mark favorites, and share feedback directly with the agent. It helps agents keep clients within their ecosystem rather than losing them to national portals. Platforms like Zillow, Redfin, and Realtor.com have developed custom AI-driven search features to enhance user experience on their proprietary platforms. Zillow has recently expanded its AI search capabilities, enabling users to find homes or rentals based on proximity to specific points of interest, such as offices or schools. This update allows for more personalized and precise property search results, improving the overall user experience.
Smart Homes
Today, more and more buyers are looking for homes that offer convenience, energy efficiency, and security. AI can help achieve it. For example, AI-powered systems can manage a property's energy by optimizing heating, cooling, and lighting systems. They can analyze usage patterns, weather forecasts, and even occupancy levels to adjust settings in real-time, reducing energy consumption and costs. It is not only environmentally conscious but also results in significant savings. AI tools also help with predictive maintenance. AI can forecast when equipment might fail or require servicing by analyzing smart home devices, such as HVAC systems, plumbing sensors, or electrical networks. This proactive approach can save huge amounts of money on emergency repairs and downtime.
EcoFlow has recently debuted its smart energy solution, EcoFlow's Oasis. It is an AI-powered Home Energy Management System designed to simplify and automate energy management in homes. It integrates real-time monitoring of solar energy production, energy storage, and third-party appliances, while utilizing predictive analytics to optimize energy usage, including switching to backup power during outages.
Chatbots and Virtual Assistants
AI-powered chatbots and virtual assistants are transforming client interactions across many industries, and real estate is no exception. Unlike human agents, AI-powered chatbots provide 24/7 support, managing inquiries, filtering leads, and scheduling viewings whenever the client wants, not limiting client service to working hours. AI-powered chatbots and virtual assistants use ML algorithms to track customer behavior and preferences, making more accurate property recommendations. Such automation, especially in routine tasks, helps real estate agents free more time for customer contact and the actual selling work. Besides, more and more AI-driven assistants have started to appear for agents themselves. Such assistants can integrate into an agent's calendar and CRM system to automate disks, such as scheduling appointments or taking notes throughout the day.
Chatbots like Roof AI help answer customer inquiries, schedule property viewings, and provide personalized recommendations. HouseWhisper is another example of an AI assistant dedicated to agents, not customers, who can handle updates, tasks, and reminders via text or call, just like a real-life assistant would.
Personalized Marketing Campaigns
With AI's ability to analyze large amounts of data, it's possible to segment customers based on their browsing habits, engagement metrics, and past purchases and create highly targeted marketing campaigns. Real estate agents can now send listings that closely match a customer's specific preferences, such as location, price range, and property features, without spending hours sifting through listings or browsing the MLS. Highly targeted marketing campaigns increase the likelihood of engagement and response, which benefits both the customer and the agent. AI-powered marketing tools can also ensure marketing messages are tailored to different groups based on their unique characteristics and interests. This level of personalization improves the customer experience and increases the effectiveness of marketing efforts.
Zillow Premier Agent is a platform that connects real estate professionals with potential clients. It offers tools for personalized marketing, including targeted advertising and client management features.
Virtual Property Tours
Previously, property viewings required physical visits by both the client and the agent. It often meant long travel times for both parties, which added expense and took up much time. As a result, it created significant limitations for global buyers or those looking to invest in properties far from their current location. Then came virtual tours, often simple panoramic images or video walkthroughs. AI has made virtual tours more engaging, interactive, and personalized, with virtual reality (VR) and augmented reality (AR) helping to create realistic experiences. AI-driven virtual tours can provide potential buyers with immersive 360-degree experiences of properties. Moreover, AI can customize the tour to focus on features that match the client's preferences; for example, if the client prioritizes outdoor features, the virtual tour can revolve around the outside of the home. They can also provide real-time information, such as material finishes and appliance details, or even visualize changes to the property in real-time, such as new furniture arrangements. This level of interaction and information has never been possible before. For real estate agents, it significantly reduces workload as they no longer need to organize multiple in-person visits, saving time and resources.
Companies like Matterport have been using AI to develop virtual tour platforms that offer both agents and buyers an unparalleled experience with AI-driven 3D virtual tours and property visualization. AI-powered tools like Virtual Staging AI enhance empty property photos with realistic furniture and decor, making them more appealing to buyers.
Accurate Forecasting with Predictive Analytics
AI can analyze vast amounts of past and present real estate market trends, economic indicators, and even social media sentiments to predict future market conditions. What's more, it can continuously update predictions based on new data. Investors, agents, and developers use this data to identify emerging hotspots and market opportunities and assess risks like inflation, economic conditions, or even global events to maximize their returns. For instance, real estate professionals can predict demand for housing in specific regions and adjust pricing strategies proactively. Predictive models also allow developers to forecast construction costs and timelines, improving project planning. Just as AI models can predict property prices, they can also predict rental income. Such models can analyze rental demand, neighborhood development, economic conditions, and even seasonal trends to provide property owners with accurate forecasts of potential rental income.
HouseCanary is an AI-driven real estate platform that provides comprehensive property data and analytics to professionals in the industry. By leveraging artificial intelligence, HouseCanary offers accurate valuations, market forecasts, and insights on over 136 million properties across the United States. Skyline AI is another AI-driven investment tool that analyzes thousands of property data points to identify high-potential real estate investments.
Automated lease and document management
Traditionally, real estate professionals had to manually draft, store, and track documents, which was time-consuming and prone to errors. AI comes to the rescue to help professionals automate and save time on these time-consuming and complex tasks. AI-powered tools simplify lease management by drafting lease agreements, reviewing terms, and ensuring regulatory compliance with local standards. Automated document management systems also detect document anomalies, flagging them for review. AI-driven platforms can track lease expirations, send renewal notifications, and automate payment collection, improving tenant retention and cash flow. This automated workflow reduces the risk of errors and speeds up the entire leasing process, benefiting all parties involved - landlords, tenants, and realtors.
Platforms like DocuPilot use AI to offer document automation services tailored for the real estate industry, streamlining the creation of various essential documents. By utilizing customizable templates, real estate professionals can efficiently generate accurate and consistent paperwork, reducing manual effort and minimizing errors.
Bottom Line:
AI is not just a buzzword in the real estate industry, it is a transformative force that is changing the way business is done. While its impact on the industry is not as bright as in other spheres, its influence is bound to grow. As machine learning, predictive analytics, and automation evolve, we can expect even more sophisticated solutions, whether hyper-personalized property searches, AI-powered smart contracts, or fully immersive virtual property experiences. The question is no longer if AI will reshape real estate but how quickly the involved parties will adapt to it.
