A leading UK property expert has outlined how AI is set to transform the property sector over the next five years.
Mishantha Liyanage, Founder of the Mistoria Group, says the pace of change will dramatically accelerate between now and 2030.
The use of automated property valuation; smart tenant management and leasing automation and AI-driven property marketing and sales will all increase.
But a regulatory framework will need to establish AI governance to ensure ethical AI usage, including transparency in AI-driven pricing, tenant selection and property transactions.
MORE EFFICIENT
Liyanage says: “AI will revolutionise the property sector over the next five years by making transactions more efficient, enhancing decision-making, and optimising property management. It will drive automation across the industry, fundamentally changing how real estate professionals and consumers interact with properties.
Outlining the four areas where he believes AI currently offers the most benefits Liyanage adds: “AI-driven property valuation models are significantly improving accuracy and speed. Traditional methods rely on historical sales data, agent assessments, and market trends, but AI can analyse additional factors such as economic indicators, infrastructure developments, and even social sentiment to provide a more holistic valuation.”
SMART MANAGEMENT
He continues: “Smart tenant management and leasing automation AI is revolutionising tenant selection and property management by automating lease agreements, background checks and credit assessments.
“AI-driven chatbots are also enhancing customer service by handling tenant inquiries, scheduling maintenance and resolving complaints efficiently. In commercial real estate, AI-driven contract analysis helps optimize leasing terms and identify risks in legal documents.
“AI-powered platforms are enabling hyper-personalised property searches, where algorithms match potential buyers with properties based on their preferences, browsing behavior and financial standing.
“Virtual tours, augmented reality (AR) property staging, and AI chatbots are creating immersive customer experiences, reducing the need for physical visits and expediting sales.
FRAUD DETECTION AND RISK
“Four are the areas of fraud detection and risk mitigation. AI systems are helping detect fraudulent activities in real estate transactions by analysing patterns in financial documents and buyer behaviour. AI can flag potential fraud, such as money laundering or identity theft, reducing the risk of financial losses for buyers and investors.”
But Mishantha says all changes “should be approached with caution”. And he warned AI will only work if it was combined with effective management by human-led teams.
BIGGEST DANGERS
He adds: “The biggest dangers we face is not effectively controlling the acceleration of AI will be around bias and fairness in tenant selection. If AI models are trained on biased data, they may inadvertently discriminate against certain demographics, leading to ethical and legal challenges. Data privacy and security concerns are key too. Robust cybersecurity measures must be in place to protect sensitive information from breaches and misuse.
“It’s vital to be mindful of workforce impact and job displacement as well.
“AI will inevitably automate certain roles within the property sector, such as administrative tasks and property management functions. However, new job opportunities will emerge in AI oversight, data analysis, and real estate technology development. We have to get the balance right.
“Regulatory and compliance hurdles must be accounted for too.
“Governments and regulatory bodies will need to establish AI governance frameworks to ensure ethical AI usage in real estate, including transparency in AI-driven pricing, tenant selection, and property transactions. It remains to be seen if this will be delivered. But it is vital that it is.”
