Artificial intelligence (AI) is becoming a critical tool in many industries, including real estate. By analysing large datasets in seconds, AI is revolutionising the way housing market trends are predicted.
In Spain, real estate platforms are using this technology to forecast house price movements with increasing accuracy.
AI and housing market predictions
AI’s ability to process historical data and real-time supply and demand figures has made it an invaluable resource for predicting property trends. One tool leading the way in Spain is DataVenues, an AI system used by real estate portal Fotocasa. By combining historical pricing data with current market dynamics, DataVenues provides short-term predictions for property price changes across cities.
According to DataVenues, three Spanish cities are expected to see the highest increases in house prices in the near future:
- Santander: 6.6%
- Lugo: 5.4%
- Alicante: 4.9%
These cities are forecast to outperform traditional hotspots like Madrid (2.6%) and Barcelona (3.5%) in terms of price growth over the coming months.
Why are these cities seeing price growth?
The predicted rise in Santander, Lugo, and Alicante highlights emerging trends in the housing market. Factors influencing these increases may include:
- Santander: Demand for coastal properties and improved infrastructure in the Cantabria region are driving up prices.
- Lugo: Affordable property prices and rural appeal in Galicia make Lugo an attractive option for homebuyers.
- Alicante: Continued demand from international buyers and a thriving tourism market boost property value in this Mediterranean city.
Falling house prices in key areas
While some cities are expected to see price hikes, others face a predicted decline. According to Fotocasa’s AI tool, the following cities are likely to experience falling house prices:
- Vigo: -7.5%
- Las Palmas: -3.8%
- Málaga: -3.7%
The decline in these cities could be influenced by a combination of factors, including oversupply, reduced demand, or economic adjustments in these markets.
The role of AI in the real estate sector
AI technology is transforming the real estate industry by enabling professionals to make data-driven decisions. Tools like DataVenues not only identify short-term trends but also help anticipate market shifts, providing valuable insights in a highly dynamic market.
María Matos, director of research at Fotocasa, emphasises that the algorithm is updated daily to ensure predictions remain as accurate as possible. However, she cautions that predictions are inherently subject to change, reflecting the evolving nature of housing markets.
The future of AI in real estate
AI’s growing role in real estate offers exciting opportunities for investors, buyers, and industry professionals. By improving the accuracy of market predictions, tools like DataVenues are empowering stakeholders to make informed decisions.
As the housing market continues to evolve, AI will remain an essential tool in navigating the complexities of supply, demand, and price fluctuations in Spain’s real estate sector.