The use of proptech technology is making real estate more momentous, while also ushering in a new professionalism.
Technology has infiltrated almost every business and industry, and real estate is no exception. While, on the one hand, the real estate industry has been quick to identify opportunities in technology adoption, simultaneously, on the other hand, the government has been presenting various initiatives to push the same among industry players.
Some of the government branding campaigns are 'Digital India', 'Global Housing Technology Challenge', 'Smart Cities', 'IndiaChain', etc. which are making access to technology easier and holistic.
The real estate industry has assimilated technology in a way that has made it more resilient, invincible, and given it a new and vibrant dynamism.
The real estate industry has been infusing technology into its daily operations to improve efficiency and quality aspects. To name a few areas where technology adoption has taken place rapidly are building automation, artificial intelligence to ensure timeless delivery, improved market access, marketing, use of augmented reality (AR), and virtual reality (VR) for marketing and site visits. Companies are now embracing Big Data and Blockchain in various stages of project execution and also in customer service.
According to the latest report PropTech: The Future of Real Estate in India, from the online real estate advisory portal owned by Elara Group, investments in the PropTech segment in India have also seen a rebound in recent years. So far, $ 2.4 billion has been invested in India's PropTech industry in 225 deals to date. The report attributes the segment's growth to a rapidly growing middle class, rapid urbanization, technology adoption, a growing Internet user base of more than 500 million users, a young demographic base, and a consolidating real estate canvas. gradually.
Startups hitting the stage
There are a number of startups in the industry that are not only altering the status quo with the use of technology, but are also ushering in global best practices in construction and sales and marketing functions. There are many activities like property listing that is also being taken up by the industry in a new way that benefits both developers and property buyers. There is a lot of innovation and value that these startups are bringing with the use of technology.
Real estate investment inflow is growing at a CAGR of 10%, of which PropTech has been a top-of-the-line segment since 2010, growing at a solid CAGR of 57%.
This can be seen as a demonstration of the usefulness of technology in today's real estate business. The role of technology will improve as there is faster growth among the country's middle class, rapid urbanization, and an increase in the Internet user base of approximately 500 million.
It is technology that has helped the real estate industry to recover quickly from the tumultuous period of lockdown and today sales are almost on par with pre-covid levels. The industry invested heavily in technology, especially in the initial period of the blockade, which helped it reap the benefits immediately when the government eased the blockade. The lockdown further accelerated the entire technology adoption process. The data shows that the majority of buyers concluded their real estate deals using virtual means in the closing period and the opening afterwards. The fact that companies have already been investing heavily in Proptech helped solve the problems. About: blank
Pandemic impact and PropTech
Newly developed platforms for the search and discovery of potential properties have evolved since the pandemic broke out. The platforms are helping buyers track all processes in a property purchase agreement from the comfort of their homes. The coronavirus epidemic would have affected the real estate market much more if it had not been for the constant growth and maturation of the PropTech industry in the country in recent years.
The segment is likely to see tremendous momentum in the near future amid the growing use of technology such as virtual reality, drones, big data, and artificial intelligence in home purchases. This is expressed in the fact that real estate in the country will become a $ 1 trillion market by 2030.
The Housing.com report also notes that most business is still conducted through offline mode in the property brokerage business in India, estimated in an industry of $ 1,400 billion ($ 1,4 billion). millions). However, PropTech's growth in India is also indicated by the fact that even with the actual transaction culminating offline, more than 50% of real estate purchase decisions are made through online searches. . With the growing Internet user base expected to grow to 2025 billion by XNUMX, the opportunity for gamers in this segment is colossal.
Technology is revolutionizing the entire industry in more ways than one, providing more opportunities for all stakeholders.
Profitability through technology
Another important way that technology is helping the industry is profitability. Industry players can control costs much more easily with the use of modern tools adopted by them. They are now able to control costs more effectively. This is helping them transfer the benefits of cost optimization to their clients who obtain properties at lower rates.
The use of technology is making real estate more momentous, while also ushering in a new professionalism. Technology is helping in accomplishing new tasks that the industry could not dream of accomplishing, say, 10 years ago. Developers can bring new paradigms in customer service, as well as meet project deadlines easily and take construction quality to the next level. Such efficiencies will continue to accrue for the industry as the technology itself evolves and also with the adoption of more technology by businesses.
