The real estate sector is undergoing a groundbreaking transformation, driven by artificial intelligence (AI) technologies that are revolutionising how properties are bought, sold, managed, and experienced. As we approach the midpoint of the decade, AI is no longer a futuristic concept; it has become a competitive necessity. From hyper-personalised property searches to blockchain-powered transactions, here are five key ways AI is reshaping real estate in 2025, with insights into the companies leading this charge.

1. Hyper-Personalised Property Discovery

Property searches have evolved beyond generic listings. AI-powered platforms now analyse user behaviour, preferences, and even implicit signals-such as time spent on listings or scrolling patterns to deliver bespoke recommendations. For instance, if a buyer frequently engages with homes featuring solar panels or open floor plans, AI curates similar listings, even if these preferences aren’t explicitly stated.

Key Players:

  • Zoopla uses AI algorithms to analyse property data, offering insights on pricing trends and personalised search results.
  • HousingAnywhere, a global rental platform, employs machine learning to match international tenants with verified properties, reducing search times by up to 50%
  • REalyse’s Pulse AI chatbot provides tailored property reports, factoring in local school performance, crime rates, and planning permissions to refine buyer choices.

Impact:

  • Faster matching: Buyers find ideal properties 3–5x faster, reducing decision fatigue.
  • Enhanced experience: Platforms like Rightmove are integrating AI to predict buyer preferences, boosting engagement and conversion rates.

2. AI-Driven Property Valuations & Market Predictions

Traditional appraisals, once prone to human error and delays, are being replaced by AI tools that analyse millions of data points-from location trends to social media sentiment-to generate real-time valuations.

Key Players:

  • Zillow’s Zestimate remains a market leader, but UK-specific tools like Cotality’s IntelliVal are gaining traction. IntelliVal uses AI to process complex property data, offering lenders instant valuations and risk assessments.
  • REalyse aggregates data from 20+ sources, including Land Registry and EPC records, to deliver live valuations and capital growth predictions.
  • JLL’s Hank AI optimises building efficiency, indirectly influencing valuations through energy-saving insights 

Impact:

  • Accuracy: Automated valuations reduce human bias, with tools like IntelliVal cutting manual effort by 40%.
  • Speed: Transactions close 30% faster, as seen with REalyse’s instant reports for mortgage brokers.

3. Smart Property Management & Predictive Maintenance

AI is streamlining property management by automating tenant screening, lease renewals, and maintenance. Predictive systems analyse IoT data to flag issues before they escalate, slashing operational costs.

Key Players:

  • Snappt detects fraudulent rental applications using document verification AI, reducing risk for landlords.
  • Spaceflow enhances tenant experiences via AI-powered apps that streamline service requests and community engagement.
  • MRI Software offers AI tools for compliance with Material Information Regulations, automating data entry and client communications for UK estate agents.

Impact:

  • Cost savings: Predictive maintenance cuts repair costs by 15–20%, as seen in JLL’s HVAC optimisation projects.
  • Tenant retention: AI chatbots like LettsLive handle inquiries 24/7, improving response times and satisfaction.

4. AI-Enhanced Virtual & Augmented Reality Tours

Virtual tours now adapt to buyer preferences. For example, if a user prioritises natural light, AI highlights sunlit spaces, while AR overlays renovation ideas onto real-world views.

Key Players:

  • Zillow 3D Home tours let buyers explore properties remotely, with AI suggesting furniture layouts based on room dimensions.
  • Oree Reality uses generative AI to create hyper-realistic virtual staging, reducing the need for physical showings.
  • REalyse’s Pulse integrates AR to visualise planning permissions and future developments, aiding investment decisions.

Impact:

  • Efficiency: Virtual tours reduce physical visits by 40%, saving time for buyers and agents.
  • Engagement: Customised tours increase conversion rates by 20–30%, particularly for international buyers.

5. Automated Transactions & Blockchain Integration

AI streamlines document preparation and compliance checks, while blockchain ensures secure, transparent transactions via smart contracts.

Key Players:

  • Propy automates closings with blockchain, reducing paperwork and fraud risks in cross-border sales.
  • REalyse is piloting smart contracts for instant lease agreements, leveraging AI to verify tenant credentials.
  • JLL’s PropTech ecosystem includes AI tools for contract analysis, identifying risks in legal documents and optimising lease terms.

Impact:

  • Speed: Transactions complete in days, not weeks, as seen with Propy’s automated workflows.
  • Trust: Immutable blockchain records enhance transparency, critical for high-value commercial deals.

AI is no longer optional, it’s the backbone of modern real estate. Companies that embrace these tools will dominate in 2025, offering faster, smarter, and more personalised services. For professionals, the message is clear: Adapt or risk obsolescence.