In today’s ever-changing property market, uncertainty has become one of the biggest barriers for developers in the UK. To overcome this challenge and stay ahead of market trends, developers are increasingly turning to artificial intelligence (AI) technology. According to research conducted by Shawbrook, a 78% of professional property developers in the UK are embracing AI technology to achieve their business goals and seize future opportunities.
Embracing AI Technology
Out of the 500 property developers surveyed, 35% have already invested in AI technology, while an additional 43% are planning to invest within the next 12 months. Only 9% stated that they had no intention of investing in AI. These findings clearly demonstrate that property developers are recognizing the potential benefits of AI in a market plagued by economic pressures such as rising interest rates and stubbornly high inflation.
Using AI Technology to Stay Ahead
For those developers who have already adopted AI technology, 44% stated that they would use it to assess new development opportunities. Another 43% planned to use AI to keep up to date with buying trends. This shows a keen interest among developers in using AI to obtain market insights and ensure they don’t miss out on lucrative opportunities.
Efficiency and optimization of operations were also highlighted as important objectives for developers utilizing AI. Of those surveyed, 41% are leveraging AI to create more intuitive designs, 30% are using it to manage customer inquiries, and 22% are using AI to create marketing collateral for their developments.
Other Areas of Technology Investment
In addition to AI technology, property developers are also investing in other areas of technology to enhance their operations. The research by Shawbrook highlighted the following key areas:
- Building management systems: 46% of developers are investing in these systems to streamline and improve their operations.
- Smart home services: 45% are incorporating smart home technology into their developments to attract buyers seeking modern features and convenience.
- Modular building: 43% are adopting modular building techniques as a way to accelerate construction projects and improve efficiency.
- Virtual/augmented reality: 36% are embracing virtual and augmented reality technologies to provide immersive property tours and visualizations to potential buyers.
- Drones: 35% of developers are utilizing drones for various purposes, including aerial surveys, inspections, and site monitoring.
The Future Influence of AI
Terry Woodley, Managing Director of Development Finance at Shawbrook, believes that AI has the potential to become a key competitive differentiator in the market. With firms already experimenting with AI and new use cases emerging regularly, it is likely that AI will have an even greater influence on development trends in the years to come. However, Woodley advises developers to carefully consider where AI can add value to their business before investing in the technology. Furthermore, collaborating with a specialist lending partner who can help navigate and realize their plans is crucial before embarking on new developments.
In conclusion, the rising adoption of AI technology among property developers in the UK is paving the way for improved market insights, operational efficiencies, and enhanced decision-making. As the property market continues to evolve and face challenges, embracing AI technology can give developers a competitive edge and enable them to stay ahead in an unpredictable industry.