The Indian real estate sector has seen a major transformation over the past few years, with the advent of new business models, innovative technologies and co-living as a new way to live in cities. Moreover, friendly government policies like RERA, Modern Tenancy Act have brought about the necessary structure to the unregulated real estate sector and is helping rebuild the trust in the market.
In spite of the positive headwinds for the industry, the Indian real estate industry is combating many challenges. Low rental yields, weak rental contract implementation, trust-deficit between owners and tenants and ease of finding properties are some of the main issues prevalent in the real estate industry.
However, with the exponential rise in adoption of data, technology and transformative business models, the old offline market is giving way to friendlier mobile-centric system that is redefining the perceptions of property management and investment. From friendlier user experiences to paperless transactions, the real estate industry is at the brink of a major transformation.
Emerging technologies like ML are helping identify property trends and pricing algorithms to further customize the customer experience. In addition, access to information, client servicing and enhancing customer expectations are some other solutions curated with the help of AI and Big data.
Rise Of App-Based Real Estate Companies
The increase in internet penetration has provided a great platform for property firms to reach their customer base. Technology platforms in the form of mobile apps or websites are not only providing ease of finding a house but are also going beyond just selling or renting properties to newer avenues in servicing like maintenance and cleaning.
Especially in today’s fast-paced life, app-based services are making it easier for customers to find a solution for all their needs at their fingertips. Co-living companies are also providing a sense of belonging to urban migrants through various engagement and community building activities.
Bringing Transparency In The Real Estate Sector
India is considered to be a blockchain technology hub in the real estate segment, assuring to bring the necessary confidence and transparency within the system. Blockchain enables faster and safer transactions with the least manual intervention while reducing costs for buyers.
Blockchain technology has made it possible for people to process big financial transactions, such as real estate sales, without going through intermediaries like banks. Moreover, solutions like automated dispute resolution technologies are further bringing transparency and efficacy in the real estate market.
Improving Customer/ Tenant Experience:
With the help of IoT, technology now can be found in simple things like doors, light switches, locks, and more. This helps companies collect data that can be instrumental in identifying behavioral patterns, likes and dislikes of customers, localities where customers are likely to find homes, and further curate customized consumer experiences. Digital agreements is another key trend seen in the real estate sector that is solving the hassle of getting a stamped agreement made every year.
Furthermore, the concept of AR and VR could act as the next breakthrough in the real estate space with buyers experiencing the property without visiting the property in person. In fact, a number of real estate companies are offering retina headgear to potential buyers to check properties virtually and provide enhanced customer experience.
Are Smart Homes The Future?
The Internet of Things is another technological innovation that has shaken up the realty sector at a great level. Currently, people use appliances, security cameras which can be controlled through the internet or Wi-Fi. Through technology, simple things like remote energy management, high-security systems have become very easy. With inbuilt technology, these homes would render quality lifestyle, safety and security, ease in maintenance and many more.
The conventional way of thriving in the real estate business is paving the way forward to new business models and newer concepts. With a whole new generation of PropTech companies designing innovative platforms and solutions to address the growing demand for community living, affordability and flexibility.
The need of the hour is to speed up the process of application of these disruptive technologies in the sector in order to build dynamic business models, thereby, contributing to the overall real estate market. From shortening the sales cycle to providing satisfying customer experience, technology is set to truly transform the real estate sector.