Future of Real Estate Business – Adoption of Technology

The COVID-19 pandemic has had a severe impact on economies across the planet. Many countries, including India, have gone into an entire lockdown mode. Every sector is moving to remote working possibilities in order to make their businesses run. They’re trying to integrate technological processes to mitigate the impact of COVID-19. The real estate sector is no exception to the present conditions of the business across the country, which either is paused or is working with limited resources.
Realty may be a segment of the physical world, a brick and cement setup which is till recently engaged with technological interventions only in matters associated with planning and style.Welcome to our comprehensive guide to RERA compliance for promoters and real estate developers. Whether you are an established player or a budding entrepreneur in the real estate industry, understanding and adhering to the regulations set forth by the Real Estate Regulatory Authority (RERA) is crucial for your success. In this article, we will provide you with valuable insights, in-depth information, and practical tips to help you navigate the intricacies of RERA compliance successfully.
Lately technology seeped into other processes of the world like marketing and sales; which earlier relied on physical brochures, inspection of property or visits to the finished projects. Real estate industry has been a sector which has integrated its processes with technology over the years to deliver a better buying and selling experience in India.
But with the eruption of a worldwide pandemic of COVID-19, every sector in the country is facing a bad time and has impacted the buying behavior of the customers. Plunged to an all-time low during March to June an adverse impact of the Covid-19 pandemic has been seen on demand-supply in the real estate sector. This is where the technology previously integrated, has come as a savior.
Deployment of robotics and AI in place of labour will fasten the construction process and at less cost and will be error free. This has also helped the developers to carry on work without interruption and compromising on the quality and already set benchmarks by the company. Not only that, it has also augmented productivity and efficiency.
Developers have started using drones extensively to evaluate and do a detailed survey onsite. They are also being utilised to take images of properties that buyers can view visual information at economical costs.
E-brochures were adopted by the developers past few years now. However, this situation has made it a necessity since all the information including virtual images of the projects which makes buying decision of the consumer a little easy.
In this era of extensive use of social media, it has become easier to connect with consumers and giving customers a virtual tour to their dream homes, solving their query online has helped maintain buyer-seller relationship.
Property technology or Prop-Tech is still a much-undermined field in India, but it has come to aid when needed the most. Technology has always been a significant aspect in redefining the parameters of developing and processes in real estate sector. While the current COVID19 havoc has kept buyers and sellers at bay, it is technology that is bringing them close using various tools. All this has made the real estate sector on-going even at the point when economy is going through turmoil.
The shift towards real estate technology cannot be ignored anymore. As the industry evolves, individual companies will fight to become undisputed leaders by offering solutions such as renewable energy and smart homes that are beyond real estate products and services, in order to have a tight grip on customer loyalty. As technology and innovation continue to shape the real estate industry, emerging real estate tech companies are creating an opportunity to become leaders in the new digital real estate ecosystem. Some of the key areas to focus on for real estate tech companies are highlighted below:

Big Data: From driving business decisions to creating better consumer experiences, big data can have a lot of influence on your business. Many real estate businesses collect a lot of data that sit in silo repositories without any analytics being done to pick out industry trends or behaviors of their consumers. Real estate companies wanting to target the right clients need to know who they are, when they want to buy, where they are, and how they can reach them in the most effective manner. Harnessing big data is an invaluable tool in targeting the right buyers and an important element in refining the real estate process.

Machine Learning and Artificial Intelligence: Artificial Intelligence (AI) and Machine Learning is the art of computers teaching themselves on how to improve the way they perform their tasks based on previous experience or through pattern recognition. Such systems are in use by real estate investors to effectively control expenses, manage risks and gain higher returns using algorithms that are designed to predict and factor in individual investor concerns. Real estate search analytics is improving the way prospective buyers are matched with desirable properties.

Some of the AI tools in use include chatbots to automate answering of frequently asked questions, investor analytics that sets income and growth goals and monitors through an intelligent robot as well as loan default predictors that are able to access risk and focus on profitable investments only.

The Internet of Things: The Internet of Things (IoT) is a key component of home automation and smart homes. This involves automating the ability to control items around the house from curtains to electricity with a hand-held device or voice command. Smart home technology has started changing the way home-owners view property. It is becoming a game changer for real estate developers. Instead of selling a shell for a house, developers are enticing buyers with internet ready homes. It is also anticipated that there will come a point when real estate agents use IoT for home searches. The practice of consumers going online and pecking their way to their perfect home will be replaced with voice-driven applications embedded on phones, that are able to automatically answer any questions they have.

The Internet of Things: The Internet of Things (IoT) is a key component of home automation and smart homes. This involves automating the ability to control items around the house from curtains to electricity with a hand-held device or voice command. Smart home technology has started changing the way home-owners view property. It is becoming a game changer for real estate developers. Instead of selling a shell for a house, developers are enticing buyers with internet ready homes. It is also anticipated that there will come a point when real estate agents use IoT for home searches. The practice of consumers going online and pecking their way to their perfect home will be replaced with voice-driven applications embedded on phones, that are able to automatically answer any questions they have.

Building Technology: With the increased demand for low-cost housing with less impact on the environment, real estate developers are left with no choice but to consider innovative ways of building houses. The areas of focus include using prefab building material and modular construction where a building is constructed offsite and then assembled onsite. In 2014 Winsun, a company based in China pioneered a 3D printed house. Compared with the traditional construction methods, they were able to save up on 80% of the construction costs and 60% on labour. This are just a few of the innovative ideas that real estate companies are exploring globally in order to reduce cost.

Augmented and Virtual Reality: Virtual Reality (VR) enables customers to tour predevelopment or ready house units from anywhere in the world. Real estate developers, hoteliers and other businesses are using the technology to give their prospective clients a feel of the product virtually. Through the power of virtual reality, they allow prospective buyers to walk through and experience the space even before construction has started.

Real Estate Operations Automation: To remain competitive, real estate companies have to look out for better ways to increase efficiency, differentiate and position their products and services as they build customer loyalty. With a robust back-office operation, the company can have visibility of a customer life-cycle from the time they were prospects till when they become landlords or tenants. Automating your customer relationship management, portfolio management and facilities management, the companies are able to address challenges such as cost efficiency and communication between different stakeholders.

As real estate tech evolves, it’s certain that the industry is headed for a revolution. Real estate tech companies won’t necessarily disrupt the industry but will disrupt those companies that refuse to embrace the change. Investing in technology as a real estate company is a key differentiator moving forward.

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