How Technology Is Revolutionizing Real Estate in India
According to a report published by EY, Real estate firms are now realizing they need to shift to the changing technology landscape to stay relevant and gain an edge on their competitiveness.
: If there was one industry that immensely needed the help of technology it was real estate, and it came at the right time.
Technology is revolutionizing the real estate industry in more ways than one these days. From ‘Smart Cities’ to smart homes, technology is making living easier and convenient. According to a report published by EY, Real estate firms are now realizing they need to shift to the changing technology landscape to stay relevant and gain an edge on their competitiveness.
From Artificial Intelligence to Virtual Reality (VR), tech is the landscape with the latest innovations Recently, a new term called PropTech was coined and to signify a modern industry that has garnered investment worth billions of dollars in a short span of time. This is attributed to the rapid urbanization leading to a surge in demand, especially from India's middle class whose lifestyles choices have dramatically changed in the last few years. From smartphones to smart homes, the Indian middle class wants to have it all, and there is a big opportunity for the real estate sector to tap this customer base.
The real estate industry has undergone a tectonic shift in the last decade with the unique and fast-growing concept. PropTech of ‘Fractional Ownership’ opening a new, safe, and profitable avenue of investment for retail investors in premium A-grade office real estate, which was earlier beyond the approach of the middle class as an investment capacity.
The real estate industry has undergone a tectonic shift in the last decade with the unique and fast-growing real estate marketing concept of ‘Fractional Ownership’ opening new, safe, and profitable avenues of investment for retail investors in expensive A-grade office real estate, which was earlier beyond their investment capacity.
The rise of portals and algorithm-based valuation models has focused attention on the property sector. A lot of new avenues have been introduced in the PropTech sector and a lot of start-ups have emerged in India and gaining a lot of traction. It is clear there is tremendous scope for the adoption and evolution of technology-driven solutions in the residential real estate industry.
With many startups bringing modern solutions, things have only turned for the better for the real estate industry.Here's how technology is revolutionizing real estate in India:
1) Tech startups leading from the front:
Tech startups are not only bringing the latest technology, they are also helping businesses with sales & marketing which is one of the major ways investment can be pulled in this sector. Post Covid-19, Property Technology (PropTech) has seen a wider growth and demand. With the increasing demand for tech-enabled real estate platforms, some trends like the use of AI, machine learning, and Robotic process automation (RPA) can witness significant momentum in 2021. The cloud service has been a boon to real estate stakeholders because they can now access documents of any property from anywhere.
2) Impact of Covid-19 pandemic
From Nestaway to Magicbricks, companies are investing heavily in Proptech as more buyers are foraying into virtual mediums, especially after Covid-19 induced lockdown. In a way, Proptech is helping the real estate sector to bounce back after a challenging period of the last few years.
The platforms for property search were already gaining popularity as millennials and young professionals found it easy to look for a property online, using just a mobile phone. With everything being available online and a dramatic surge in smartphone users, there is a potential business opportunity for these tech-based companies to attract prospective buyers.
3) Cost and other calculations
The use of PropTech and Big Data is helping in cost savings and increased margins. AI can help in property valuation; it can determine the rates of the property with the use of a 'predictive analysis' algorithm. This way, investors can gauge growth in the value of properties and evaluate possible future risks, besides comparing property rates.
4) Chatbots, Virtual reality, and more
There are many apps for property listing which attract people who want to buy or rent a flat but don't have much time to physically visit the property locations. With virtual reality and augmented reality, things are spicing up more as it gives the customers an immersive experience about the product which the leading e-commerce platforms have already started using, and soon, it will be the turn of the real estate sector to tap this option.
Earlier, real estate agents would moderate all documentations, and both the buyer and seller or landlord and tenant had to go through extensive paperwork. Now, the process has become smooth with most of the documents being digitally signed and vetted by all stakeholders. Blockchain can also be a game-changer as records can be kept in a decentralized manner which leads to transparency and efficiency.
5) Smart Homes
Internet of Things (IoT) has developed extensively over the last few years and there are plenty of appliances and gadgets that can work in tandem with each other inside a property. People can manage their appliances, set reminders, save electricity bills by managing devices just by using an app. All this requires modern infrastructure that can accommodate and support this ecosystem.
