With the maturation of artificial intelligence development, ChatGPT, which has recently become the focus of the business world, has once again sparked discussions about artificial intelligence in the market. Several years ago, many startup technology companies in Europe and the United States were dedicated to applying AI in real estate, including the development of commercial real estate financial analysis platforms driven by AI.
Artificial intelligence can analyze various variables related to real estate, including market trends, financial models of development projects, building regulations, land lease contract rules, planning regulations, and past approval cases of relevant government departments. By doing so, it can quickly analyze financial analyses of different building design schemes and scenarios, thus arriving at the highest and best use plan for real estate projects. This accelerates the decision-making process for investors and saves the time of estate surveyors in data collection and studying legal regulations.
Another application is the use of an artificial intelligence-driven Automated Valuation Model (AVM) to process property valuations. Taking the Hong Kong real estate valuation market as an example, property valuations are generally handled by industry surveyors but are also facing the impact of emerging AVMs. The author believes that AVMs may provide institutional investors, banks, and regulatory agencies with a possible risk control, aside from human errors and manipulation by professionals, which can ultimately stabilize and secure the capital market in the long run.
