Customer-Centric Finance in Real Estate

Overview:

• Real estate is entering a new cycle of recovery and renewal, favoring newer, amenity-rich assets designed for wellness and tenant experience.
• CFOs are shifting investment frameworks to include customer engagement and ESG performance alongside financial returns.
• Digital transformation is now a core strategy, especially in tenant-centric and ESG-first firms.

Market Size & Growth:

• Global AI in real estate grew from US$222.65 B (2024) to US$303.06 B (2025), projected to reach US$988.6 B by 2029.
• AI/ML VC in CRE-related startups totaled US$7.2 B (2017–2023), with US$3.5 B in generative AI since 2021.
• CRE firms piloting AI have surpassed 75%, showing sustained sector-wide digital adoption.

Key Growth Drivers:

• Supply shortages and demand for wellness-oriented real estate drive investment in superior tenant experiences.
• Convergence of AI and IoT enables predictive maintenance and personalized tenant services.
• ESG and energy efficiency mandates are reshaping valuation methods and investment priorities.

M&A Overview:

• CRE platforms are acquiring AI-enabled startups in analytics, leasing, and tenant experience management to stay competitive.
• The US$7.2 B AI/ML investment boom indicates strong momentum toward consolidation of enabling technologies.
• Regional deals are targeting ESG and proptech innovators, aligning with global decarbonization and data mandates.

AI’s Role:

• AI is now being piloted or deployed in areas like accounting (37%), FP&A (36%), risk (34%), and property operations (35%).
• The technology promises 20–30% gains in productivity and revenue through automation and data analytics.
• AI adoption enables real-time decision-making and customer personalization at scale.

Competitive Landscape:

• Firms with integrated AI and customer-centric models are outperforming in leasing speed and retention.
• Only 14% of CRE firms have robust data infrastructures to fully scale AI initiatives.
• ESG-driven valuation frameworks are helping progressive firms attract capital and differentiate themselves.

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Sources: PwC – Emerging Trends in Real Estate® Global 2025, PwC – AI Business Predictions 2025, Deloitte – Generative AI in Real Estate, Deloitte – 2025 Commercial Real Estate Outlook, FTI Consulting, JLL, Research and Markets, The Business Research Company

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