Artificial intelligence (AI) is a game-changing digital precedent that’s transforming real estate for buyers, sellers and agents. The emergence of technologies in the real estate space opened the opportunity to enhance and simplify the entire home search process by automating repetitive tasks done by real estate agents. It’s apparent the most significant future of real estate is upon us and AI is here for the long haul. Wondering what this year will bring for real estate? Here’s a glance at the top real estate AI trends of 2025, and how they’re shaking things up for buyers, sellers, and those involved in the industry.
1. Artificial Intelligence Automated Valuation Models (AVMs) For Pricing
If selling your home is on your mind, knowing how much your home is worth is critical to getting a return on your investment. Think about it, you’ll want to avoid getting less than what you invested in your property. But, setting the price of your home too high could scare off potential buyers. Traditionally, figuring out a property’s value relied on human judgement and limited comparative data. Now they’re being enhanced by AI algorithms. These tools have the power to provide data on:
- Past property sales
- Trends in the local market
- Neighbourhood data
A report by McKinsey found that real estate AI has changed property valuations for the better – cutting property valuation times by 95% while delivering 90%+ accuracy.
But combining AI with real estate property valuations isn’t just about speed. It’s also about providing the average real estate consumer with a comprehensive understanding of part of the real estate process. The average homeowner and home buyer can be empowered with data that was once exclusive to real estate agents to make smarter real estate decisions.
2. Smart Property Matching
Have you ever spent hours scrolling past homes for sale that don’t seem to match your wants and needs? If so, you’ll love this next real estate AI tool. Before AI was combined with real estate technology, property searches relied on toggling with filters for basic criteria like location, price, and number of bedrooms. But AI is taking property searches to the next level with smart property matching. Smart property matching involves analyzing:
- The types of homes you’ve looked at
- Commuting needs
- Types of neighbourhoods you have browsed
This kind of real estate AI is helping home buyers find homes that match their criteria faster and with fewer headaches. In fact, a report by the National Association of Realtors states, AI has cut online home search times in half. Think of it this way, if a few homes with a large front yard and a home office have caught your attention, the AI can prioritize these property features in future recommendations, even if you haven’t actually typed that into the search bar.
3. Make Property Management Smarter, Cheaper, and Better With AI
Next on our list of emerging trends in real estate technology is for landlords and property managers. AI is making maintenance and operations a whole lot easier. Intelligent property management tools integrated with AI can:
- Automate communication with tenants
- Optimize how energy is used
- Learn future maintenance needs
These real estate AI tools for landlords and property managers have helped keep tenants happy, decrease property maintenance costs, and conserve energy. Keeping up with these AI-driven tools could save a ton of money and time for landlords.
4. Make Faster and Smarter Investments Decisions With AI
This next real estate AI tool is for real estate investors. What if I told you that you could improve the efficiency of operational tasks, but also change decision-making processes when making real estate investments? It sounds too good to be true but it’s already happening.
JLL’s 2023 Global Real Estate Technology Survey states, AI is the top 3 technologies that are expected to have the most impact on real estate over the next 3 years by investors and developers
Also, Datacamp reports, AI and predictive analytics are rapidly changing decision-making in real estate investment. With the use of machine learning models, investors can feed real estate AI tools with highly granular data, such as location, condition, market demand, real-time market trends, economic indicators, and even social media sentiment.
Embracing AI technology in real estate investments ensures smarter investment decisions, and also gives investors a competitive advantage. But it’s important to remember that investing always comes with risks and AI is only a tool to help you make smart decisions – you shouldn’t rely on it to tell you what to invest in.
5. Immerse Yourself Into Real Estate With Virtual and Augmented Reality
In 2025, the combination of AI with virtual and augmented reality (VR/AR) is set to explode. Here’s how it works:
- Virtual staging to show off homes
- Plan renovations with augmented reality tools
- Tour homes without leaving the couch
According to a study by the National Association of Realtors, properties featuring 3D virtual tours receive 87% more views than those without. Clearly, real estate agents and consumers can’t afford to ignore this kind of real estate technology.
Conclusion
These technologies show the importance of how we can best understand what AI’s advancements in the housing market will mean, and what to do next to stay in the know and ahead. As these AI-related trends continue to evolve, the human element remains the strongest driving force in the real estate industry, and make no mistake, real estate is as much about relationships as it is about innovation.From smarter pricing models to immersive property tours, these trends promise to make buying, selling, and investing in real estate faster, easier, and more efficient.
