The real estate industry has changed significantly since the onset of the global coronavirus pandemic. The sector which was initially reluctant to adopt technology is now rushing toward its adoption. Such a move towards digitalisation has opened gateways for property technology or PropTech to create new waves of transformation in this industry.
The adoption of technology in real estate has progressed so much that today's businesses cannot afford to function without it.
VTP Realty CEO Sachin Bhandari, in this regard, says,
"Embracing PropTech for your real estate after 2020 is a must. It is not a novelty anymore; instead, it has become a necessity, and businesses can't run from it."
PropTech, has become an integral part of Indian Real Estate and will play a vital role in the coming years. This article will look at this role and explore the dynamics involved in PropTech and how it is transforming the real estate industry.
Understanding The Dynamics of PropTech
Here’s how Arvind Subramanian, MD & CEO, Mahindra Lifespace Developers Ltd explains and dissects the dynamic factors of PropTech.
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Consumer Tech -
Technology involved with reaching potential customers through real estate marketing & sales cycles -
Construction Tech -
Technology being used in the construction process, including AI, drone surveillance, and BIM, amongst others -
Home Tech -
Technology available at the customer's far end, including smart homes, security features, amongst others.
Fundamentals of PropTech Ecosystem
At its core, Data, Communication, and Computing Power are the driving force behind the propelling growth of PropTech.
Vikram Kotnis, Executive Chairman & MD at BeyondWalls, asserts,
"Fundamentally, data is getting cheaper, communication speeds are increasing, and computing power is increasing day by day. This allows us to leverage consumer data to collaborate efficiently, stay updated with trends and accelerate the real estate process to quite an extent."
These entities empower real estate developers and brokers to connect with the entire customer journey and become a part of the PropTech Ecosystem. For real estate developers, this ecosystem further entails a multitude of technologies, including Customer Acquisition technology, CRM technology, ERPs, SPA, Project management technology, design software, 3D printing, and much more.
The real estate industry is getting competitive day by day, and thus, these developers are keen to adopt the latest technologies to stay ahead of the competition.
PropTech at the Developers & Brokers' End
A robust PropTech ecosystem can help real estate developers, brokers, and agents make the most of their efforts without spending much on their resources. In fact, pre-sales processes, lead management, product showcase, and unit bookings can all be made through online channels now. One of the prominent examples of a product showcase is VR technology. Developers can use VR technology to show the flat virtually and save costs on building a sample unit.
On the construction side of things, PropTech also grants developers the ability to supervise projects easily using drones, take control over their architecture using BIM, forecast budgets using predictive analysis, and much more.
Rohit Gera, Managing Director at Gera Development, describes the use of drone technology to supervise the construction site concerning the quality and safety of the workers.
"We have drone shoots; our monthly reviews are done using drone footage. We use it for construction quality, the safety of workers, and supervise the whole construction process."
Furthermore, the PropTech solution allows developers to bridge the gap between the multiple departments by sending the correct information and broadcasting it to all the stakeholders.
Overall, PropTech offers developers and brokers to collaborate easily, troubleshoot online, supervise, and scale operations quickly.
PropTech at the Consumers' End
Today, the millennial generation cares more about experiences and the ways things look & feel. That is why they are ready to spend more and get a better experience and do not shy away from researching for themselves.
People today look for properties online, research developers, read reviews, do a comprehensive site visit, and then book a property. Paving the way for simpler, easy things, these consumers also look forward to completing transactions online over to the traditional offline process.
Technology like Blockchain also favours these consumers on a significant level. According to Mr Kotnis, Blockchain will bring transparency for customers concerning the whole financing options and payment involved in the real estate industry. He says, "If you take a 50 Lakhs loan for a property, then by the time the property is yours, you have paid around 30 Lakhs in interest only. Blockchain in such a matter will bring transparency with the cost involved."
Mr Gera also gives a brilliant example of how PropTech improves real estate transactions. "If you order something online from Zomato for Rs. 250, you get instant notification that the same amount has been debited from your account. Whereas you give the developer a Rs 7-10 Lakhs cheque, the same gets reflected after seven days. Now, we are partnering with Banks to use their digital technology to speed up the transactions."
He also gives insights on how consumers can keep everything at their fingertips with their mobile app. The Gera World Mobile app lets the users store documents, download agreements, get real-time notifications, view events & meetings, and much more. They can do practically everything they need with the use of a smartphone.
VR is yet another key technology that will play a significant role in letting customers understand the product, walk through it, talk to a consultant online, and book property without being physically present in that state or country. Home automation with IoT, smart devices, and mobile apps have also become a major part of home technology that is empowering consumers to do more than just own a home.
Such examples of PropTech in Indian Real estate help keep the process simple, quick, and transparent while empowering developers to stay consistent with their customers' journey.
In Conclusion
It is safe to say that property technology is transforming Indian Real Estate for the greater good. It has already become a part of consumers and is on the right curve to be adopted by real estate developers, brokers, and agents alike. For the forthcoming years, embracing this PropTech in Indian Real Estate will pave the path for collective customer and business growth.