While real estate is one of the most significant sectors, the advancement of cutting edge technologies like artificial intelligence has not been that impactful as expected. One of the primary reasons is the lack of data which is collected on real estate that can be used to create useful models. However, the scenario seems to be changing fast as AI is now increasingly invading the real estate sector. Case in point, the recent investment round of Cherre, a company that is utilising artificial intelligence on various public and private data sources on properties across the globe. The $16 million funding round has been led by Intel Capital, bringing the total capital raised to-date to $25 million.
It is interesting to see that Intel Capital has led the funding of Cherre, which speaks volume on what it’s going to mean for the real estate space. Intel Capital has been investing in innovation-led startups in the field of artificial intelligence, autonomous vehicles, datacenter and cloud, 5G, next-generation compute and a big range of other disruptive digital technologies. And, since 1991, Intel Capital has invested $12.6 billion in about 1,560 startups across the globe.
According to experts, we may be staring at highly integrated data systems for real estate very soon, which is going to meet the innovation needs. The size of the real estate market is similar to the stock market, which has been impacted by AI and automation for years now, yet the former has been lagging on innovation. To close this gap, startups like Cherre are leading the charge. No wonder Cherre’s tech stack is designed after high-frequency trading platforms, with interconnected data repositories for real-time analytics and high throughput. It also includes the assistance of machine learning models which automatically identify and index real estate data, and give relevant information on demand in an easy and readable format.
What’s New About Cherre?
Cherre’s software-as-a-service (SaaS) suite includes many fundamental components like CoreExplore, CoreConnect, CoreAugment, and CorePredict, with different functionalities on data management and integration. According to Cherre, its data network provides the most precise and updated real estate data to enable mission-critical operations. With the platform, users are able to connect all of the internal and external data from any source to create a customised data architecture for real estate.
Multiple notable companies including banks, investment firms, and insurance companies are using Cherre for the collection and real-time analysis of real estate data sets across tends of sources for AI-powered investment assistance, lending and automated underwriting processes using high-performance, low-latency APIs. This is powered by Cherre’s knowledge graph which it claims to have granular, actionable insights on over 177 million properties, 84 million enterprises globally, and over 315K datasets, spanning across economic, geospatial, and demographic-based datasets.
Cherre’s predictive models take in real estate metrics such as amenities, materials, and zoning; community and geographic demographics including population, languages, and schools; lien and mortgages; geospatial data; boundaries; tax assessment; and valuations from more than 450 million transactions for 100 million properties.
Trina Van Pelt, VP & Senior MD of Intel Capital, said in a statement, “The global real estate industry is going through a transformation, driven by massive data flows and AI application. Despite its big impact on the global economy, the real estate sector is still in infancy when it comes to data-based investing and underwriting decisions. Intel sees Cherre as critical infrastructure to accelerate the future of this industry. Our customer diligence repeatedly signalled Cherre’s AI-powered platform to be a foundational pillar, a data system of record for big enterprises in the real estate segment. We’re excited to help accelerate Cherre’s worldwide growth trajectory.”
2019 became the tipping point for innovation in the real estate sector, something they call as PropTech. According to a report, the funding of 2019 in PropTech companies has been totalled $24.9 billion, a 157% increase from 2018, with 39 deals over $100 million. Here, technologies like AI, data management, analytics, and blockchain have made a significant impact in the last few years. According to analysts, given the scale of siloed data in this industry, the opportunity is ripe for tech companies to extract value, given global real estate stands at more than $200 trillion.
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Vishal Chawla is a senior tech journalist at Analytics India Magazine and writes about AI, data analytics, cybersecurity, cloud computing, and blockchain. Vishal also hosts AIM's video podcast called Simulated Reality- featuring tech leaders, AI experts, and innovative startups of India.