Real estate marketers are facing sharply rising digital marketing costs as Google’s AI-powered search tools reduce traditional organic traffic. According to industry experts, the introduction of AI Overviews and generative results on Google’s search pages is significantly lowering click-through rates on standard search listings—directly impacting lead generation for real estate developers, brokers, and property portals.
With Google now answering user queries directly on the page, fewer users are clicking through to websites, forcing marketers to spend more on paid campaigns to maintain visibility and lead flow. This shift is proving particularly expensive for the real estate sector, where customer acquisition costs are already high and competition for qualified leads remains intense.
Marketing agencies report that cost-per-click (CPC) on property-related keywords has increased, while organic website visits have dropped across many real estate firms. As a result, developers are being pushed to diversify their digital strategies, turning to social media performance marketing, influencer collaborations, email automation, and AI-driven lead nurturing tools.
Experts warn that as Google continues to prioritise AI-based experiences, real estate brands will need to rethink SEO, invest in richer content, and adopt multi-channel funnels to reduce dependence on search engines. The industry is now preparing for a new era where AI-driven search dynamics reshape digital marketing economics.
