Artificial intelligence and advanced digital tools are rapidly reshaping the global real estate industry, according to the latest Emerging Trends in Real Estate® 2026 report published by PwC and the Urban Land Institute (ULI).

The report identifies AI not as a future add-on, but as a core driver of competitiveness, efficiency, and value creation across property markets worldwide.

Drawing on insights from more than 1,700 real estate professionals—including investors, developers, asset managers, and lenders—the report concludes that firms failing to adopt AI-driven tools risk falling behind in an increasingly data-intensive and volatile market environment.

The 2026 edition marks a turning point in how the sector views artificial intelligence. While earlier years framed AI as experimental, respondents now describe it as essential infrastructure for decision-making. AI tools are increasingly used for market forecasting, site selection, tenant analytics, dynamic pricing, energy optimization, and predictive maintenance.

PwC and ULI note that AI is enabling real estate firms to navigate what the report describes as a “fog of uncertainty” created by fluctuating interest rates, geopolitical tensions, climate risk, and shifting demographic patterns. In this environment, data-driven insight is becoming a decisive advantage.

According to the report, AI-powered analytics are transforming investment strategies by improving risk assessment and underwriting accuracy. Machine-learning models are being deployed to analyze large volumes of market data—ranging from mobility patterns to consumer behavior—allowing investors to identify emerging opportunities earlier and manage downside risk more effectively.

Asset managers are also leveraging AI to enhance operational performance. Smart building systems powered by AI are reducing operating costs, improving tenant experience, and supporting sustainability goals through real-time energy management and emissions tracking.

The report highlights a strong correlation between AI adoption and the performance of high-growth property types. Data centers, ranked among the top investment prospects for 2026, are both beneficiaries and enablers of AI expansion, as demand surges for infrastructure supporting cloud computing and generative AI.

Similarly, AI is playing a growing role in senior housing, logistics, and mixed-use developments, where operators rely on intelligent systems to manage staffing, healthcare integration, supply chains, and tenant services more efficiently.

While the office sector remains challenged by hybrid work patterns, the report suggests that AI-enabled buildings are outperforming traditional assets. Offices equipped with smart access systems, occupancy sensors, and AI-driven space optimization tools are better positioned to attract tenants seeking flexibility, efficiency, and wellness-focused environments.

Respondents emphasized that future office demand will increasingly favor technologically advanced buildings capable of adapting to changing work behaviors.

Despite AI’s growing influence, the report stresses that technology is not replacing human expertise. Instead, AI is enhancing strategic judgment by providing clearer insights and faster analysis. Successful firms are those integrating AI tools into decision-making while maintaining strong governance, ethical oversight, and domain expertise.

PwC and ULI caution that talent gaps, data quality issues, and cybersecurity risks remain key challenges as AI adoption accelerates across the sector.

As the real estate industry enters 2026, the report makes clear that AI is no longer a peripheral trend—it is a defining force shaping investment priorities, operational models, and long-term resilience. Firms that embrace AI strategically are expected to be better equipped to weather uncertainty and capture emerging opportunities in an increasingly complex global market.

The Emerging Trends in Real Estate® 2026 report concludes that the future of real estate will belong to those who successfully combine traditional fundamentals with advanced digital intelligence—placing AI at the heart of how cities are built, managed, and experienced. (ILKHA)