Apple co-founder Steve Jobs once said, “Let’s invent tomorrow instead of worrying about what happened yesterday.” Likewise, in traditional real estate over time, companies new and old are now realizing the need to adapt to the changing technological landscape in order to remain relevant and gain an edge over the competition. The entire real estate industry has undergone a structural shift over the past decade with its unique and rapidly growing concept.
In today’s digital age, the role of technology has transformed businesses from back-end enablers to core sectors of business strategy across industries. As the pandemic has accelerated the digital revolution strategies of several organizations, the Indian real estate industry is no exception. The situation is exemplary in terms of the agility and timeliness of the adoption of evolving technologies to support the market. It helps drive real estate resilience and safeguard its future growth by stabilizing existing businesses.
Technology is gradually powering every aspect of human behavior, and as technology continues to advance, it plays an ever-increasing role in the real estate industry. As many industries and technologies go hand in hand, technology has helped to develop various industries and sectors. New technologies have always shaped the way different industries develop, and no industry can resist this change. The adoption of technology helps to have an impact on revenue in the long run.
In the early 2000s, the Indian real estate market saw the first wave of widespread adoption of technology (real estate + tech) in the space, and the beginning of online classified ads for home buying, selling, and renting. Since then, the prop technology field in India has developed rather slowly. Despite incremental improvements, aside from a handful of new business models like co-living and co-working, there hasn’t been much innovation in the prop tech space. This is usually surprising as real estate is the largest asset class in India.
The real estate industry has been behaving in a traditional model for years, with real estate company employees and consumers dealing face-to-face. Although in the past three years, the real estate industry’s transformation from “real life” to “real time” has been remarkable. Covid-19 has given a huge boost to real estate technology. Therefore, the latest trends in the market are rapidly reorganizing a large number of real estate traditions. A lot of changes in consumer behavior due to Covid-19, the availability of real estate data in digital format, and augmented AR/VR (Augmented Reality, Virtual Reality) technology should accelerate the growth of this segment. Demand for digital transactions and virtual home tours is at an all-time high. 3D renderings and virtual walkthroughs have become standard products for most of India’s top real estate developers.
Today, nearly all real estate activity is influenced by digital marketing, technology and sales objectives, including drafting, financing, construction and traditional marketing. Real estate sellers and buyers alike can profit from the variety of technology solutions available today. These solutions are cost-effective and offer both parties the prospect of connecting on a level that was not possible before.
All in all, developers and real estate advisors must also encourage the digital push in smaller cities, which can help increase housing demand and supply in smaller towns. In addition, the government has been pushing for reforms in the real estate sector over the past three years to speed up the construction and completion of projects. Nonetheless, there is an urgent need for an infusion of funds from the government to drive the digitization of the industry for its long-term impact and recovery.
It would be ironic to say that technological innovation has simplified the way we do things.
The views expressed above are the author’s own.
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