- Savills drops more than 5 per cent as AI anxiety spreads.
- Wall Street property giants tumble in sharp sell-off.
- Industry figure456s say human agents are not going anywhere just yet.
Property stocks have been dragged into the widening AI sell-off, as traders begin to wonder whether chatbots could start eating into estate agents’ traditional role.
Savills led the slide in London, falling more than 5 per cent. British Land and Landsec each shed over 2 per cent, while office landlord IWG dropped more than 4 per cent. The pullback came after sharp losses in the US, where Cushman & Wakefield and CBRE slumped 14 per cent and 12 per cent respectively.
The mood in the market suggests growing unease. Investors appear to be asking whether the property sector could face the same kind of disruption already haunting wealth managers and stockbrokers.
The automation question
The concern is fairly simple. Tasks that once justified agency fees, from property valuations to drafting marketing details and handling enquiries, can now be done in seconds by AI tools.
Megan Eighteen, president of ARLA Propertymark, reportedly said in a news report that AI is “changing the landscape” for property firms. She noted that many routine processes can now be automated quickly and efficiently. That, she suggested, naturally raises questions about margins and long-term relevance, especially in London where agency and portal stocks are seen as exposed to tech disruption.
Even so, she sought to calm fears that estate agents could be replaced outright. Lettings remains a people business, she reportedly said, adding that compliance, negotiation, tenant quality checks and local knowledge are not easily replicated by an algorithm. The agencies likely to survive, in her view, will be those that use AI to support their services rather than replace staff entirely. The recent share price weakness, she suggested, reflects uncertainty rather than the demise of the traditional agent.
A familiar fear returns
Some analysts are not convinced the sell-off is entirely justified. John Cahill of Stifel reportedly said he was unsure how well-founded the fears are. Attempts to sidestep estate agents have surfaced before, notably with Purplebricks. Yet the housing market has largely remained a business driven by physical, face-to-face salespeople.
Still, the market reaction has been swift and broad. Billions of pounds have been wiped from British wealth managers and brokers this week on similar AI-related concerns. St James’s Place, AJ Bell and Quilter were among those hit hardest.
An AI-powered tax tool launched by Altruist Corp, designed to analyse payslips and meeting notes to generate tailored tax strategies, reportedly intensified worries. At the same time, a new insurance price comparison feature integrated into ChatGPT knocked confidence in established comparison platforms such as MoneySuperMarket.
Other companies caught in the downdraft include data group Relx, accounting software firm Sage and credit score specialist Experian. Relx has fallen around 34 per cent over the past month, while Sage is down nearly 27 per cent.
Mr Cahill reportedly added that at present any hint of AI entering a sector appears to trigger an equity sell-off. It may well have an impact, he suggested, but perhaps not as dramatically in certain industries, estate agency among them.
For now, the market seems to be reacting first and asking questions later.
