The AI revolution sparks an evolution

Artificial Intelligence (AI) is quietly but rapidly transforming how Australian real estate is developed, managed and traded. AI is helping industry professionals work faster, smarter, and better. From optimising land use planning, streamlining approvals through to automating building operations and site acquisition due diligence. Here we explore some examples of how AI is being used across the real estate landscape.

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Property Creation: Site analysis & land use planning

Identifying a viable development site has historically been a laborious process. Determining the best land use mix to maximise its economic and social value can be a lengthy and expensive undertaking. Today, AI is making these tasks faster and easier. It is being used to harness huge amounts of traditional and non-traditional data. Everything from rent and capital value metrics through to mobile device data, local climatic information and micro-mobility indicators. AI can analyse hundreds of sites and provide recommendations at the touch of a button.

In one example in Sydney, AI is being used to assess thousands of variables. These include zoning laws, planning overlays, topography, and proximate infrastructure. Using AI, it instantly suggests viable development options that meet local council regulations. It even generates 3D models of buildings optimised for sun, airflow, and constructability. This process dramatically shortens the early feasibility phase and reduces planning risk. Early AI adopters in the real estate sector include the NSW and SA governments, Mirvac, Brookfield, JLL and Ernst & Young.  

Governments are also introducing AI into the statutory planning process. The NSW Government’s AI in Planning initiative is backed by $5.6 million in State funding. This supports 16 local councils to trial AI tools that pre-screen development applications. These tools can flag missing documents and highlight non-compliance before a planner even opens the file. This saves time, increases efficiency, and allows faster response times to applications.  

In Victoria, Yarra Ranges Council uses AI to deliver personalised planning advice. A resident can ask a question like “Can I build a second dwelling?” and receive an instant answer based on their local planning scheme and overlay. This service is already available in Mornington Peninsula, Bayside, and amongst other councils in Victoria. The use of AI helps councils reduce enquiry loads, increase response times, and give the public clearer guidance 24/7.

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Property Operation: Automating management & improving service  

Once a building is in use, AI is used to streamline day-to-day operations. Providing real-time operational insights, pre-empt maintenance requirements and deliver instant property management services. Not only does this provide a more tailored experience to building users, but it also lowers operational costs and improves ESG performance too.

In the office sector, AI-powered platforms are being used to monitor, optimise, and automate core building functions. In some Australian portfolios, machine learning interprets sensor data throughout a building to monitor and maintain temperature, air quality, foot traffic, and equipment load. It will then automatically adjust building systems to reduce energy consumption and carbon output without requiring human input. Data on building performance at any given time is available to occupiers and their staff.  

In logistics warehouses, AI-driven building management software can detect airflow inefficiencies, recommend equipment servicing before failures occur, and reduce power draw during off-peak periods. This lowers costs and helps assets meet NABERS and Green Star certification requirements.

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Asset Acquisition & Disposal: Quicker, better decisions

Due diligence has long been one of the most time-intensive, and some might say a tedious part of a real estate transaction. Thanks to AI, this can be reimagined. Investors, valuers, and legal teams are using AI-powered platforms to process thousands of data in hours rather than weeks.

AI tools can scrape and structure information from title registries, flood maps, zoning instruments, council planning portals, building permits, infrastructure plans, contamination registries, and recent sales to present a holistic risk profile of a given site or asset. This streamlines acquisition timelines and helps buyers act confidently in competitive deal environments.

Many Australian legal firms like Herbert Smith Freehills, Clayton Utz, and Ashurst are now using generative AI to draft contract summaries, identify unusual clauses, and flag high-risk terms. While all outputs are reviewed by humans, AI is significantly reducing admin load and turnaround time, which is particularly valuable in time-sensitive transactions. In effect, AI is augmenting human workers rather than replacing them.  

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Surf’s Up: The AI wave is beginning to build

Here we have considered a small sample of the vast array of ways in which AI is proving its worth in Australia’s property sector. As the technology evolves, more and more investors, operators and occupiers will see the power and benefits of using AI in their processes. The adoption of AI will only increase as the digital native Gen-Zers  join the Australian property industry workforce. As in other industries, the AI trend is only going one way. The AI revolution in real estate has only just begun.