AI’s implications for real estate

The growth of AI is poised to reshape labour markets and drive data centre investment. But how could it change property in the future?

AI adoption has grown rapidly since OpenAI launched ChatGPT, the first mass-market large-language model, in late 2022. While the technology is still in its infancy, its effects on productivity and labour markets are starting to be felt. Regulators around the world are also considering how to respond.

Real estate is already experiencing AI’s impact: data centres are enjoying an investment boom. This is driven in part by record hyperscaler spending, for which the US has been the major recipient. There are also knock-on effects for logistics, with Europe alone expected to see an additional 8.5 million sq ft of demand for supporting warehousing space over the next three years.

Longer term, the implications for the industry are less certain. But if the current pace of uptake and technological development continues, AI could have a transformative effect.

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