In Colombia, it is estimated that 45% of companies are using artificial intelligence (AI) in their operations, according to a study by MinTIC, and the real estate sector has not been the exception. In this industry, AI has contributed primarily to property management, impacting profitability, and reducing vacancies, as well as comprehensive administration of spaces, services, and processes that optimize building and resource usage. Additionally, it allows for the provision of comprehensive and more efficient real estate services to companies so they can focus on their core business without worrying about real estate issues.

According to Ana María Mejía, the LATAM Consulting and Market Intelligence Manager at MTS Consulting + Management, “artificial intelligence has had a greater impact and benefit on our processes such as property valuation, rental management automation, predictive maintenance, and risk analysis, allowing us significant savings, greater efficiencies, and significant reductions in risks.”

Real Estate Property Management

Real estate property management aims to generate higher profitability and occupancy rates. Among the activities carried out is property valuation, where market data, public information, and specific property characteristics are combined. According to a study by Deloitte, AI provides better accuracy of up to 10% compared to traditional methods in this valuation process. Another activity is risk analysis, assessing and predicting investment-related risks by analyzing historical data, market trends, and external factors.

Next is predictive maintenance, where artificial intelligence predicts and prevents maintenance issues in offices, warehouses, or other properties, reducing costs and minimizing downtime. According to IBM, it allows for planning maintenance activities, reducing long-term costs by up to 10%. Regarding automation in rental management, it handles and monitors lease contracts, reducing errors and ensuring that deadlines and agreed-upon conditions are met. This results in improved efficiency and a reduction in legal risks.

According to Gustavo de la Torre, LATAM Real Estate Director at MTS Consulting + Management, “AI in real estate property management has helped reduce risks and ensure compliance with contractual deadlines for real estate portfolios, guaranteeing precise and automated rent management.”

Facility Management – Optimization of space and resources

“Facility Management is the efficient and effective administration of buildings and associated services, allowing companies to focus on their core business. In this aspect, artificial intelligence optimizes the use of resources, analyzes real-time data on energy and water consumption, among others, thus identifying patterns and trends that allow measures to be taken, which in turn would lower operating costs. According to the consulting firm McKinsey, AI could reduce operating costs by 30% by 2030 by streamlining processes and improving accuracy.

For both property management and facility management, predictive maintenance is key, for which the consulting firm Capgemini assures that the effective implementation of this process through AI can reduce costs by 10% and increase operational efficiency by 25% and not end up performing reactive maintenance.

Real Estate Services

Real estate services can range from property management to market research and artificial intelligence came to support these activities. Likewise, it helps to reduce the environmental impact from different analysis and implementation of automatic adjustments to maximize efficiency. In this case, MarketsandMarkets says that there will be a growth in the market for energy management based on Artificial Intelligence, at an annual growth rate of 21.7% between 2021 and 2026.

When talking about market research, artificial intelligence performs data analysis considering characteristics such as property prices, demand and supply trends, demographic characteristics, among others. Likewise, it helps with price prediction, being important data for owners, buyers, and investors, and helps to make decisions based on projections. A Stanford University study found that AI algorithms reduce research bias by 40%.

For Ana María Mejía, the LATAM Consulting and Market Intelligence Manager at MTS Consulting + Management, “Artificial Intelligence has become a great ally for the real estate sector in market research, identifying opportunities, and data analysis. Algorithms enable the analysis of historical data and current conditions, projecting figures and deducing trends based on the needs and characteristics of each market.”