Real estate market in transition: people and AI are shaping the future!

Real estate market in transition: people and AI are shaping the future!

In the latest episode of the “Peter & Paul” show, which was recorded in the Westfield Shopping City Süd (SCS), Matthias Brandstetter, Head of Product at Immobilien Scout GmbH, and Alexander Bosak, CEO of Exploreal GmbH, discussed future developments in the real estate sector under the title “Immobilien Digital – the future of living and investing”. The conversation was moderated by Paul Leitenmüller, CEO of the Opinion Leaders Network.

Brandstetter noted that consumers' search behavior has changed: it is no longer primarily about the question "I need a property", but rather about the realization "I need a home". This suggests that people today place greater emphasis on personal and emotional elements when looking for a home.

Artificial intelligence as a key technology

Both experts emphasized the importance of market transparency and the role that artificial intelligence (AI) plays in this. AI is seen as a valuable tool to support routine real estate tasks. Alexander Bosak explained that Exploreal GmbH, which was founded in 2017, offers investors quick and well-founded assessments of the profitability of property purchases. Your database enables efficient analysis of new construction projects, prices and market environments.

Market transparency is crucial to making informed decisions. According to a recent study by JLL, around 84 percent of global investments tend to flow to “highly transparent” countries, underscoring the importance of clear data and regulatory frameworks. The Global Real Estate Transparency Index (GRETI) assesses market transparency every two years and shows that Europe remains the most transparent region, with the UK, France and the US at the top.

The biggest challenge: people

Brandstetter and Bosak identified the biggest challenge for property developers: creating tailor-made products that meet the needs of customers. The search for accommodation will increasingly change as machines take users' preferences into account and make targeted suggestions. The aspect of sustainability must also be taken into account, as the pressure to develop environmentally friendly buildings is growing.

The GRETI index shows that Germany ranks 10th, with room for improvement in terms of sustainability and market data availability. Some German cities such as Frankfurt, Munich and Berlin fall into the “Highly Transparent” category. Globally, British, American and Australian cities have the best scores, while Baghdad was identified as the least transparent city.

Overall, the discussion makes it clear that the real estate industry is undergoing change, which is characterized by technological advances and changing consumer expectations. While artificial intelligence and data transparency advance, people remain the central element, whose needs and expectations must be at the forefront.

For more information you can view the full reports Leadersnet and BFW Newsroom read up.