The real estate industry has long grown with a traditional business model based on "people" and "trust. Behind my founding of INA & Associates, Inc. was a strong desire to bring new value to this industry. And now we must focus on the potential for the entire industry to evolve into something more efficient and transparent by incorporating advanced technologies such as AI, while remaining based on people-to-people trust.
In 2025, the Japanese real estate market is at a major turning point with the introduction of AI technology. This report will examine how AI should be utilized to provide true value to each and every client, not simply to ride a trend, and will discover specific directions for the future by surveying past AI applications.
The Japanese real estate industry is currently facing several structural challenges. These include changes in the demand structure due to the declining birthrate and aging population, an increase in the number of vacant houses, the concentration of real estate in urban areas, and above all, a shortage of labor and operational efficiency issues. Of particular note is the subjectivity of pricing and property valuation, which has relied on experience and intuition to date, and which has undermined market transparency.
According to the 2023 survey, the real estate industry lags behind other industries in the status of digitization and DX promotion, with only about 10% of companies actually using ChatGPT and other generative AI, despite a high awareness of the need to promote DX (99%).
In response to these challenges, AI offers the following possibilities
AI should be positioned as an "intelligent partner" that amplifies the expertise and experience of our real estate professionals, rather than just an "automation tool.
Many examples of AI applications have already been created by major Japanese real estate companies. Here are some of the most noteworthy examples:
Mitsui's Rehouse: AI appraisal The company has shortened the appraisal process from three hours to one hour, and is now able to provide real-time price assessments. This enables customers to quickly obtain a fair price for a property without having to visit a store.
Mitsui Fudosan: AEMS (AI Electricity Demand Forecasting System) The system optimizes energy use in office buildings and commercial facilities, reducing both operating costs and environmental impact.
Tokyu Livable: AI Matching System The AI Matching System for condominium unit investment, developed jointly with NEC , instantly suggests properties best suited to the requirements of individual investors. This not only improves the quality of investment decisions, but also dramatically increases the efficiency of brokerage operations3.
Nomura Real Estate: AI ANSWER 24 hours a day, 365 days a year AI chatbot has been introduced to automatically respond to various property-related inquiries. This system has improved customer satisfaction and reduced the workload of staff in charge.
Open House: Automatic Housing Lot Demarcation System: Introduced a system that automates the design of housing lot demarcation using AI . The system has significantly shortened the time required for this task, which previously took one to two days, contributing to faster decision-making.
Not only large companies, but also small and medium-sized real estate companies are using AI:
A mid-size real estate company has successfully cut the time spent on blogging and content checking by more than half by implementing ChatGPT . This shows that even small companies can realize significant efficiency gains by choosing the right AI tools.
The smart buildings market in Japan is projected to grow rapidly from $799 million in 2024 to $3.145 billion by 2033, at an annual growth rate of 17.6%. Driving this growth will be the convergence of AI, Internet of Things (IoT), and big data analytics technologies.
Energy optimization In the Tokyo Tatemono case study, an AI-based air conditioning control system was successfully implemented, resulting in a 50% reduction in electricity consumption. By combining sensor data and AI analysis, energy efficiency is maximized without sacrificing comfort.
Predictive Maintenance and Equipment Management By combining IoT sensors and AI analysis, equipment breakdowns can be predicted in advance, enabling planned maintenance. Prevent losses and tenant satisfaction due to unexpected breakdowns.
Improved Security and Safety Tenant safety and satisfaction are enhanced by installing advanced security systems, such as face recognition systems and AI camera-based suspicious person detection.
The essence of a smart building, as I see it, is not simply "a building packed with the latest technology," but the creation of "an intelligent environment that enhances the quality of people's lives and work. We must not forget that technology is only a means to an end, and that the goal is to increase occupant satisfaction and asset value.
Blockchain and smart contracts are gaining attention as a technology to increase transparency and efficiency in real estate transactions.
A smart contract is a program that automatically executes when predetermined conditions are met. Examples of applications to real estate transactions are:
In Japan, however, there are also issues of legal consistency and social acceptability. In the long run, the fusion of blockchain technology and AI may lead to the creation of a transaction platform that achieves a higher degree of automation and transparency.
Let us consider specific approaches to which parts of real estate operations should utilize AI.
Finding Potential Customers As in SmartZip Analytics' "SmartTargeting," property owners with high potential for sale can be predicted to realize efficient sales activities. Sales efficiency can be greatly improved by identifying customers who intend to sell their properties in advance.
Property Matching Like Tokyu Livable's AI compatibility diagnosis, the system proposes optimal properties based on customer preferences. This contributes to higher customer satisfaction and contract closure rates.
Automated Content Marketing Efficiently create content such as property introductions, blog posts, and SNS posts using ChatGPT and other generative AI. By using it as a "partner" to enhance the creativity of marketers, more attractive content can be created.
Automated Document Processing Automate the digitization and extraction of information from contracts and applications, like Intelligent OCR introduced by Leopalace21 . This reduces the time and effort required for data entry and prevents human error.
Automated customer service We have introduced a 24-hour AI chatbot that automatically responds to frequently asked questions. This enables responses to inquiries even late at night or on holidays, improving customer satisfaction and reducing the workload of the staff in charge.
Streamlined reporting AI supports the creation of market analysis and property evaluation reports. By automating data collection and analysis, you can focus on providing more valuable insights.
Realization of Predictive Maintenance Combining IoT sensors and AI analysis, equipment failures are predicted in advance. Planned maintenance reduces costs and improves resident satisfaction.
Optimization of energy use Like Mitsui Fudosan's AEMS, we have introduced a system to optimize energy use in buildings. This will both reduce environmental impact and costs.
Improvement of resident services Automate information provision services for residents, such as AI INFO of the DAIKYO Group. This will contribute to smoother communication and improved satisfaction. 6.
The following issues can be considered when introducing AI to the real estate industry:
We propose steps to overcome these challenges:
A phased approach Rather than a full-scale implementation, we will proceed with a phased implementation starting from specific business areas to verify the effectiveness while mitigating risks. For example, it is effective to start with the introduction of chatbots and simple analysis tasks, and gradually expand the scope.
Establishment of Data Strategy The accuracy of AI depends greatly on the quality of data. Organize and standardize internal data, and formulate a data strategy that also takes into account linkage with external data. It is also important to establish an appropriate consent acquisition process for data collection and utilization, taking privacy into consideration.
Human Resource Development and Fostering Organizational Culture In order to effectively utilize AI , it is essential to improve the digital literacy of employees. Through periodic study sessions and training programs, improve employees' understanding of AI and their skills to utilize it. It is also important for the entire organization to share the understanding that AI is not something that takes away human jobs, but rather a tool to expand human capabilities and focus on higher-value tasks.
Selecting the Right Partner Selecting a partner that can provide an AI solution that meets your company's needs is the key to success. Consider collaborating with a partner that combines industry knowledge and technical capabilities, such as a real estate-specific AI startup as well as a major IT vendor.
Finally, we discuss the future vision that AI will bring to the real estate industry.
Ultra-personalized services AI's deeper understanding of customers will make it possible to propose properties and provide services tailored to each individual's lifestyle and needs. For example, comprehensive matching will be possible, including commuting patterns, hobbies and preferences, and predictions of future life plans.
Real-time market analysis and price optimization Dynamic pricing to optimize property prices and rents through real-time analysis of market conditions and economic indicators will become commonplace. This will reduce market inefficiencies and create a fairer trading environment.
Autonomous Property Management The convergence of AI and IoT will lead to the proliferation of smart buildings in which the building itself becomes intelligent and performs optimal operations autonomously in response to environmental conditions. Many tasks will be automated, such as optimizing energy use, self-diagnosing equipment and requesting repairs, and managing security.
Convergence of Virtual and Real Evolution of virtual space technologies , such as the Metaverse, may lead to hybrid real estate transactions that combine physical previews and virtual experiences. Even overseas investors and distant clients will be able to experience the property as if they were there.
As these technological innovations advance, what I want to emphasize most is the "ideal relationship between humans and AI." AI is only a "tool," and only humans can make final decisions and provide emotional value. Especially in the field of real estate, which involves "major life decisions," a relationship of trust and careful attention to detail is essential.
With AI taking over routine tasks and analysis, we real estate professionals can focus on a deeper level of customer understanding, consulting, and emotional support. By optimally combining technology and human strengths, we are confident that we can realize our philosophy of "creating a society where hard work is rewarded" at a higher level.
AI and related technologies have the potential to revolutionize the real estate industry. However, their essence lies not in "replacing humans" but in "extending human potential.
At INA&Associates Inc., while utilizing technology, we always place "human resources" and "trust" at the core of our management, and aim to provide true value to each and every client. the introduction of AI is not an objective, but a means to provide better service.
In order for the real estate industry to continue to provide value to society in the future, the fusion of traditional wisdom and technology is essential. The road to change will not be easy, but we believe that if the entire industry takes on the challenge in a positive manner, we can create a new form of real estate business that is more transparent, efficient, and contributes to people's happiness.
We at INA & Associates, Inc. will continue to pursue a fusion of technological innovation and human skills in order to remain a good partner that brings value to our clients and society.