1. Retail sector:
In this particular sector, artificial intelligence is expected to improve the in-store experience for shoppers. Thanks to object recognition cameras that identify the items in peoples’ baskets, there should be no need to wait to pay for goods. This will further be consolidated by facial recognition and mobile payments which will come together to take the customers’ money as they exit the store and email a receipt. Alongside, stores will also have screens to provide in-store directions, display goods in augmented reality, furnish detailed product information and create customized products.
2. Office market:
When it comes to office market, the combination of and AI and data from the Internet of Things is expected to pave the way for occupiers for more efficient usage of space and reduction of energy consumption. While this could curtail demand, it is believed that the impact on head office or front office space will largely be offset by the increase in informal working areas, as companies look to attract young, highly skilled staff, promote internal collaboration and improve productivity and well-being. To elaborate in a more general manner, the growth of AI and other technology (such as blockchain, cybersecurity, social media) will enhance the demand for space in the tech districts of certain big cities (e.g. Amsterdam, Berlin, Boston, London, Munich, San Francisco, Seoul, Singapore, and Stockholm) and university cities. However, the drawback of it is that, Artificial Intelligence will cut the demand for back-office space, as chatbots become more proficient and begin taking over a lot of the routine enquiries which are currently handled by customer services teams and call centres. Additionally, in all likelihood, expert systems will replace people in functions such as invoicing, selecting job applicants, insurance claims, loan approvals, compliance, and product design. AI is hence, likely to contribute further to the existing pressure on administrative jobs and back-office space from off-shoring, robotic process automation and blockchain.
3. Industrial real estate:
to To date, the industrial real estate has benefitted the most from technology, thanks to the rapid growth in online retail that has boosted demand for both big distribution warehouses and smaller, urban logistics units for “last mile” delivery. Going ahead, AI will enable robots to progress from just moving goods within warehouses to picking and packing and lead to the development of more sophisticated delivery drones which can decide what to do in case no one is present at home. However, AI could also start to undermine the demand for warehousing, since better information allows manufacturers and retailers to predict sales more accurately and turn stock over quickly.
Square Yards is a technology-enabled, global real estate aggregator and India’s largest player for primary residential real estate. It’s subsidiary Square Capital is one of the largest marketplace for secured mortgages in India. Square Yards platform offers an integrated consumer experience & covers the full real-estate journey from search, discovery to research, transactions, home loans and post-sales service – fully integrating buyers to an extensive network of 500+ partner real estate developers, and 90+ banks & NBFCs. Square Yards is led by accomplished professionals, ex-bankers, and Ivy school alumni and is backed by the competence of more than 2500 employees in 30 cities and ten countries.