The Generative Artificial Intelligence (AI) Market in Real Estate is Projected to Reach 2.21 Billion by 2029

The Business Research Company

The Business Research Company's Generative Artificial Intelligence (AI) In Real Estate Global Market Report 2025 – Market Size, Trends & Forecast 2025-2034

It will grow from $0.59 billion in 2024 to $0.77 billion in 2025 at a compound annual growth rate (CAGR) of 30.2%”

— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, January 9, 2026 /EINPresswire.com/ -- The integration of generative artificial intelligence (AI) in the real estate market sector is rapidly transforming how properties are developed, managed, and marketed. As this technology gains traction, the market is experiencing remarkable growth driven by multiple factors, including urban expansion and technological advancements. Below is an overview of the market’s size, growth drivers, key players, and regional insights shaping this evolving industry.

Projected Expansion and Size of the Generative Artificial Intelligence (AI) in Real Estate Market
The generative artificial intelligence (AI) in real estate market growth has seen significant growth recently and is projected to continue expanding swiftly. It is expected to grow from $0.59 billion in 2024 to $0.77 billion in 2025, representing a compound annual growth rate (CAGR) of 30.2%. Looking further ahead, the market is anticipated to reach $2.21 billion by 2029, maintaining a strong CAGR of 30.1%. This rapid increase is fueled by factors such as urbanization, rising preferences for personalized properties, greater adoption of smart building technology, enhanced availability of data, and increased investments in AI research and development.

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Factors Behind the Surge in Generative AI Use in Real Estate
One of the primary contributors to the market’s growth is the expanding need for new construction projects. Population growth, urban migration, and evolving lifestyle demands require updated infrastructure and housing solutions. Generative AI supports these demands by streamlining building design, automating planning stages, and accurately forecasting material requirements, which helps reduce costs and improve efficiency in construction management.

For example, data from the UK’s Office for National Statistics shows that construction output increased by 5.6% in 2022 compared to the previous year, building on an even more significant 12.8% rise in 2021. This upward trend in construction activity clearly signals increased opportunities for generative AI applications in real estate development.

View the full generative artificial intelligence (ai) in real estate market report:
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How Generative AI Is Applied in the Real Estate Industry
Generative AI in real estate harnesses sophisticated algorithms to analyze and generate valuable insights from property data. It assists in producing precise property valuations, creating innovative architectural designs, forecasting market trends, and offering tailored property suggestions. These capabilities enhance decision-making processes and operational efficiencies across the real estate sector, benefiting developers, investors, and buyers alike.

Key Market Drivers Supporting Growth in Generative AI Adoption
Growing disposable incomes and the emergence of numerous proptech startups are further boosting the demand for generative AI solutions in real estate. Increasing consumer expectations for personalized platforms and services are encouraging the development of AI tools that can cater to specific property needs and preferences.

Additionally, advancements in technologies such as augmented reality, virtual tours, smart home integration, and enhanced property security are becoming major trends. These innovations are helping real estate firms distinguish themselves in a competitive market, making generative AI an indispensable part of future growth.

Regional Market Leadership and Opportunities in Generative AI for Real Estate
In 2024, North America held the largest share of the generative artificial intelligence (AI) in real estate market. The report also considers key regions including Asia-Pacific, Western Europe, Eastern Europe, South America, Middle East, and Africa. While North America currently leads, emerging markets in Asia-Pacific and other regions are expected to experience rapid adoption due to growing urban populations and increasing investments in technology-driven real estate solutions.

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