In recent couple of years Real-estate and construction industry has shown an exponential growth and it has become one of the fastest ever-booming sectors in India. The reason behind such buoyancy is the rising middle class, the affluent upper-middle class, India’s emergence as an economic superpower, rapid urbanization, increased employment opportunities in cities. These all factors are collectively contributing to the unattainable emergence of Real estate and construction sector, and made India as one of the fastest growing property markets in the world. Owing to the outbreak of Covid-19, property markets around the world have witnessed a massive downfall. According to a report by India Ratings, the first half of the year 2021 saw residential demand declining by 40%. It was estimated that, the lockdown situation brought the whole real estate market to a stand-still and caused a loss of over Rs. 1 lakh crore to the property market.
Overcoming the bed of thorny bushes, the real estate and property market in India saw an incredible comeback in 2022, setting new sales records of 68% year-on-year. In the recent times technology has been rapidly evolving and it has penetrated in almost every sector of economy, real estate and construction is not out of that long list.
Technology in Real estate and construction
The inclusion of cutting-edge technologies in real estate promises to change the way business is conducted in this age-old industry. The real estate market is a major component of the world's economy, with a global value of over $7196 billion. The successful implementation of a specific technology in the real estate industry will be determined by its ability to provide value for its users. Technologies help to cover the users' needs and bring them valuable information for decision-making to propel in the market. Prop-tech is quite a common concept now, which contains the various solutions that are involved in the growth of commercial real estate software. It is also known as CRE-tech for commercial real estate technology or RE-tech for real estate technology. It usually refers to the software employed in real estate tools and applications.
Automated Rental and Purchasing Property Platforms: Now-a-days searching for a decent property of your choice is not a tiresome work, but through Automated Rental and Purchasing Property Platforms you can easily search without the help of unnecessary interference of real estate agents and brokers. Report says that, 43% of all buyers look online for properties for sale and purchase.
3D virtual tour of property: Now the upgradation of technology has taken a rocket speed and introducing and including various new technologies in real estate and property management. It is quite obvious that, most buyers will want to tour the property before making a final decision physically. But sometimes it takes long tiring hours. Now, using AR and VR technology prospective buyers are having almost realistic 3D virtual tours to houses where they can easily examine the property state, interior details, and furniture. The real estate photo editing services allow making photos as true to life as possible using the latest technologies.
Artificial Intelligence tools and software: In any business, customer satisfaction should be of utmost priority, and connecting 24*7 is the most nominal feature any real estate company should have, so that miss-communication can be eradicated. Artificial Intelligence with Machine learning and cloud technology helps the agents and buyers to get connected to easily fulfill their requirements. AI Chatbots can help in personalization of the services to the customer’s preference so that the customer should not face any hackle in the buying process. Famous companies like Magic bricks, Square yards have this system of connectivity and offering Real Estate Services, Legal Services, Rent Agreement online.
Blockchain technology and smart contracts: Blockchain works as a decentralized digital ledger and used to securely record transactions. It is also used to verify encrypted transactions and ensure that no tampering impacts financial records. It helps in fractional property investment and allow landlords to sell portions of their stake in a given holding. Through the system important documents of property and titles are being secured and also it has reduced the need for middlemen like banks and attorneys. Few internationally known brands who are using this technology are Brikcoin, Propy, and Ubitquity.
Automated Valuation Models (AVMs): It uses Statistical algorithms to calculate a property’s value. It also checks property type, age, and other variables to estimate a property’s market worth. It is a prompt economical technique which can calculate the value and also find potential problems with a property, like inaccurate property tax assessments or possible zoning violations. Popular platforms like Zameen, REConnect, and PropEquity uses this system.
Internet of Things (IOT): As the days are progressing with the advancement of science, we are also getting smarter day-by-day. This tool is one of the most demanded trends in prop-tech for apartment websites and real estate platforms. It has become one of the main property management technology trends of recent times.
Data Analysis: In this age of Information technology, data plays the pivotal role. It can influence decisions, and since there is still no centralized national system for agents, new startups will have unlimited opportunities to develop and change the existing process. New startups are coming up with new ideas to analyze a huge amount of data and providing valuable information necessary for decision-making by real estate market participants.
"I will forever believe that buying a home is a great investment. Why? Because you can’t live in a stock certificate. You can’t live in a mutual fund "– Oprah Winfrey
Future Outlook of Real Tech and Prop Tech industry
The growing e-commerce sector is rapidly changing the retail landscape. After reviewing the reports, it is extracted that, 10-15% hike in sales collectively in residential, commercial, and retail segments will be witnessed. In 2021, the size of the Indian property market was $200 billion which grew to $1 trillion by 2030. The year 2023 is regarded by prominent experts as a boom year for real estate in the country. Within 2025, the real estate sector is expected to contribute 13% of the country’s total GDP. Opening of the Indian real estate market to foreign market brought a massive change. According to industry experts, in 2023, the property market will see a robust growth with renewed interest among NRIs and millennials to invest in real estate. The introduction of The Real Estate Regulatory Authority (RERA), it protects the interest of all the stakeholders involved and ensures speedy resolution in case of disputes. So, the influx of foreign investment has glorified the economic scenario. Within 2022, the investment in this sector was stagnated with $26.6 billion but now it attained a hike of 81%. As per reports, India’s real estate industry will reach to $1trillion by 2030. Though, the adoption of technology in real estate has lagged behind its use in comparison to other business sectors, but now more companies are embracing real estate technologies to skyrocket their sale without paying extra costs to anyone.
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