The Impact of Artificial Intelligence on the Commercial Real Estate Market in Serbia

Recently, many real estate professionals in Serbia have recognized the value of AI technologies in improving daily operations. For instance, reviewing contracts and other legal documents is often demanding and time-consuming. However, AI tools allow for faster processing of large volumes of legal text, freeing up time for brokers and consultants—especially those who, like me, are not fond of sitting at a computer—to engage in strategic planning and client interactions. This efficiency not only accelerates processes but also reduces the likelihood of human error, which is crucial in a sector where precision and accuracy are of utmost importance.

Financial analyses are another area where AI demonstrates its potential. In Serbia, investors and consultancy firms can use AI to accurately assess current property values and predict future market trends. These analyses help in making informed and timely decisions, enabling investors to quickly adapt to market changes. For example, data analysis on market movements can reveal optimal, if not ideal, times to buy or sell, thereby minimizing the risk of losses.

Property management is also undergoing significant changes thanks to AI. By utilizing sensors and IoT technologies, owners of commercial properties can monitor the condition of their assets in real time. For instance, analyzing visitor movement patterns in shopping malls can provide valuable insights into purchasing habits and user behavior. This data allows property owners to better tailor services and space design, enhancing overall user experience and boosting profitability.

Sustainability is another critical aspect where AI can make a substantial difference. As environmental issues gain increasing attention globally, the use of AI in creating energy-efficient buildings is becoming more important. AI-powered energy management systems can analyze data from various sources, such as weather reports and sensors, to optimize energy consumption. This not only reduces operational costs but also helps decrease the environmental footprint of buildings—an increasingly significant factor for investors aiming to promote sustainable practices.

The security of commercial properties is also improving with the use of AI technologies. Computerized surveillance systems and closed-circuit cameras can monitor activities in real time, enabling swift responses to suspicious situations. This proactive approach to security is essential for large shopping centers and office buildings, where the safety of customers and employees is of paramount importance.

Visualization of spaces is another area where AI is driving revolutionary changes. Architects and designers can use AI tools to create virtual representations of spaces, simplifying project planning and enabling more effective collaboration among all stakeholders involved in construction. These virtual models help investors better understand the final product and facilitate decision-making during the design phase.

Despite the evident advantages, implementing these technologies in Serbia’s real estate sector comes with challenges. As a society and state, we are often lagging behind trends and innovations. However, this might be an ideal moment for Serbia to align with global advancements. With no shortage of IT professionals and companies that have recently been buzzing about artificial intelligence, now is the time to adopt AI-driven solutions—not just in real estate but also in many other sectors where AI could have a significant impact.

Data preparation and compliance with regulatory requirements pose major obstacles. Moreover, there is a risk of algorithmic bias, which can influence assessments and decisions. It is therefore crucial for professionals to regularly review the outcomes produced by AI systems.

Artificial intelligence has the potential to transform Serbia’s commercial real estate market by enhancing efficiency, improving user experiences, and supporting sustainability. As technology continues to evolve, its impact is expected to grow, opening new opportunities for investment and innovation in this dynamic sector. Professionals who successfully implement AI technologies are likely to gain a competitive edge, enabling them to respond more effectively to the challenges and opportunities of the future.

Author: Nikola Ivković, Business Development Director, Avalon Real Estate