The proportion of global commercial real estate deals transacted with the help of artificial intelligence (AI) is set to jump 35% this year compared with 29% in 2024, according to JLL research seen exclusively by Property Week.

JLL said the rapid adoption of AI in researching and structuring deals was setting the stage for a future in which AI’s influence was pervasive: the agency predicted that by 2030, most commercial real estate deals would be driven or influenced by AI.

The research reveals AI models are increasing the number of new bidders on commercial properties by 10% to 15%. These are investors bidding on new real estate sectors, property profiles or markets or investors new to real estate investment that have formed a better understanding of the liquidity risk using AI.

The technology can gather a level of information on real estate investing previously available only for financial assets such as stocks or bonds, JLL said, allowing investors to more accurately quantify risk and make more informed decisions on where to allocate capital.

JLL identified two distinct types of new investors drawn into commercial real estate by AI: AI-powered investment managers that are building entirely new investment portfolios driven by AI; and data-driven financial players, including hedge funds, sovereign funds and other financial entities, that are recognising the opportunity to apply data-driven AI approaches to real estate.

The former are raising funds specifically for new AI-driven investment strategies and are targeting previously difficult-to-understand niche submarkets, such as single-family residential, last-mile logistics and property conversions.

AI’s ability to structure and analyse commercial real estate data is enabling them to confidently allocate more capital into the sector, according to JLL.

Emilio Portes, JLL’s global head of capital markets innovation, said: “By providing structured, transparent data previously only available for highly liquid financial assets like stocks and bonds, AI is reducing perceived liquidity risk and drawing in investors who might have traditionally shied away from commercial real estate.

“This is creating a more dynamic, diverse and efficient market, and it’s fundamentally changing how we approach every aspect of a deal.”

Meanwhile, AI’s predictive capabilities are also leading to a notable increase in off-market transactions, according to JLL.

By analysing vast datasets, AI can identify properties that are highly likely to be subject to a ‘capital event’ or refinancing opportunity before they officially come to market, which is “proving highly lucrative”, JLL said.