AI in Real Estate: The Era of 37% Cost Savings
"Woven Global Real Estate CEO Burak Ustaoğlu appeared live on CNBC-e to share how artificial intelligence is reshaping the real estate sector. Drawing on Morgan Stanley data projecting 37% savings in construction labor costs by 2030, Ustaoğlu emphasized that AI has ushered in a new era of data-driven, risk-analyzed, and highly efficient operations for both developers and investors."
AI Is Replacing Intuition with Data in Real Estate
Computer engineer and entrepreneur Burak Ustaoğlu, appearing as a guest on CNBC-e, stated that the convergence of artificial intelligence and the real estate sector has created enormous potential for the industry. Noting that AI's impact spans everything from the formation of new markets to innovations in investment income models in the short and medium term, Ustaoğlu said the technology both reduces production costs and gives investors the opportunity to identify the right locations.
Morgan Stanley Data: $34 Billion in Savings on the Way
Sharing striking figures on cost reduction for developers, Ustaoğlu highlighted a Morgan Stanley Research study covering 162 Real Estate Investment Trusts. He noted that in a sector with a combined $92 billion in labor costs, AI adoption is expected to deliver 37% in net savings by 2030 — equivalent to approximately $34 billion in cost reductions on a global scale. In this process, AI plays an active role across every stage: development, location selection, property valuation, management, and sales.
Social Media and Risk Analysis for Investors
Ustaoğlu stated that the greatest advantage AI offers investors is 'data-driven foresight,' noting that today's software can analyze not only price trends and rental yields, but also regional tourism data and even user behavior on social media. For example, if a neighborhood is associated with negative events on social media, AI can alert investors to the associated risks. The system can also factor in population growth and supply-demand dynamics to present investors with both optimistic and pessimistic future scenarios.
2026 Outlook: "Those Who Don't Adopt the System Will Bleed Out"
Projecting that the 10% net income increase and operational efficiency enabled by AI will become far more critical by 2026, Ustaoğlu stated that the technology is transitioning from an 'added benefit' to an outright necessity. He added that companies integrating these technologies into their business models by 2026 will grow far more rapidly, while those insisting on traditional methods will gradually lose their competitive edge.