The Digital PropTech Blueprint

How does technology mesh with real estate? The AI revolution is underway, with major players like OpenAI, Google, and xAI leading the charge. Google’s Gemini AI, integrated into Gmail, offers predictive text and email polishing capabilities. This highlights how advanced tools are becoming mainstream.

AI is set to transform real estate, much like it has in other industries. Take Ottawa’s task force, for example, which is exploring technology to streamline permitting and accelerate housing projects. This is just one example of how automation can remove bottlenecks, enabling faster project approvals and ultimately increasing housing supply. In the past, ‘PropTech’ referred to innovations such as online property listings, digital transactions, and blockchain applications like smart contracts. Now, AI and big data are driving the next evolution—one that could commodify real estate by making complex processes more efficient and accessible.

One of the biggest barriers to increased housing supply is Canada’s productivity gap. Small businesses dominate the economy, but they often lag in adopting productivity-enhancing technology. This hesitation stifles efficiency and slows down industries like construction, where AI-powered solutions could streamline workflows, optimize supply chains, and reduce costs. Larger enterprises tend to invest more aggressively in technology, and if smaller firms don’t follow suit, the industry as a whole risks stagnation.

Source: Government of Canada

Without the pressure to improve, businesses are less likely to invest in tools that could increase efficiency, such as AI-driven underwriting and development assistance. Meanwhile, Canada’s underdeveloped trades and apprenticeship programs contribute to a shortage of skilled labor, making it harder to source labor for new construction.

The regulatory burden also plays a major role. According to CFIB research, excessive red tape drags down productivity, creating unnecessary delays for businesses. AI has the potential to cut through these inefficiencies by automating compliance checks, expediting permit approvals, and streamlining processes that currently take months. If the industry embraces these advancements, housing production could scale at a pace that matches demand, making real estate more accessible and development more efficient. The future of real estate isn’t just about innovation—it’s about leveraging technology to solve systemic challenges and unlock new opportunities for growth.