In the last two years, the world has been struggling to recover from the effects of the covid pandemic. It had brought all economic activities to a standstill, and real estate was among the other commercial industries that were struggling to recover. The sector faced a lot of ups and downs, mainly driven by the lack of stability in the economy. However, the industry has proven itself to be resilient and is slowly getting back to its former pace.
How is the Indian Real Estate Sector Presently?
Presently, one faction of real estate is proving to be thriving in comparison with others, and that faction is luxury real estate. As per reports, luxury property accounted for only 7% of the overall sales in Q1 of 2019, and have now increased to comprise 12% of the overall sales in Q1 2022. This change in consumer sentiment can be primarily linked to the feeling of security that people associate with their homes, and hence they are preferring bigger spaces.
There is growing understanding in the minds of developers regarding consumer demands. Properties are hence being tailor-made to satisfy all these demands. This understanding comes from the analysis and interpretation of scores of data pertaining to market trends and consumer behavior which is being enabled by PropTech.
PropTech- The Merging of Technology with Property
PropTech has greatly influenced the real estate sector, and is one of the biggest contributors to the revival of the luxury market. In simple terms, PropTech means the aspects of digitization and automation that have been merged with the real estate industry. This is helping in the streamlining of the industry, and also increasing its efficiency and transparency.
One of the biggest advantages of adopting PropTech solutions for the industry has been the big data that is easily generated, segregated and stored. The data covers a vast spectrum, ranging from market trends to consumer sentiment. This data is an extremely valuable resource for any real estate business, since it can offer direct insights on what homebuyers are demanding. The insights can be appropriately analyzed by developers, and used to align their projects with the ongoing trends and enhance their sales.
With respect to the luxury real estate sector, PropTech has achieved success due to the data-driven insights and market information that it generates.
Here are some of the key aspects that Proptech has revolutionized, leading to an improvement in the sales of the luxury market:
1. Location Analysis:
Luxury properties cannot thrive in any and all areas. They have to be adequately matched by the surrounding neighborhood and amenities, and it is essential to identify a location where such properties will sell. The location has to be studied in association with the other consumer demands, because they operate hand-in-hand for the success or failure of projects. The Indian real estate industry is comprised of several potential micro-markets where there is demand for luxury projects, and the data gathered by PropTech solutions can help in such locational analysis.
2. Understanding Consumer Sentiment:
Digitization allows for large volumes of data pertaining to consumers to be easily collated. This data can give developers input regarding what type of properties consumers are preferring, the desired configuration, carpet area and amenities in the projects, and much more. This information is the foundation of building a good project, and it must be analyzed well. Due to the influence of PropTech, developers have been able to identify the niched audiences who demand luxury properties, and their project strategies have allowed them to satisfy all the requirements that consumers have.
3. Pricing Decisions:
The emergence of PropTech has led to precious data regarding pricing preferences of consumers to be stored and used for analysis. Pricing a project well is extremely crucial to attain real estate sales growth , and it becomes even more important for luxury projects. There are various aspects involved in pricing decisions, and they have to be made with a balance between offering a good price for consumers and gaining profits on the property. Developers can use the data gathered by Proptech solutions to smartly understand the pricing trends, and can then make informed pricing decisions.
4. Simplifying Purchases:
One of the biggest positive changes in the real estate sector that has emerged with PropTech has been the automation and simplification of the purchasing process. This has not only helped the luxury segment to enhance its sales, but has led to overall real estate sales growth. With the influence of PropTech, the standard sales and marketing have seen a shift towards real estate digital marketing and sales automation.
BeyondWalls- an Integrated PropTech ecosystem
BeyondWalls is an end-to-end partner for all real estate stakeholders. It is a tech-driven platform, and offers services that range from project and pricing strategies, go-to market strategies, as well as full funnel sales analytics. It makes the best use of PropTech solutions to make data-driven strategies that can allow developers to cater to the demands of consumers. Such informed decisions are crucial for the sales success of all real estate segments, and especially the luxury market.