In the 21 st century, no business or industry can remain untouched by technology for long. This disruption by innovation is taking shape in the Indian real estate sector as well, if the latest numbers are anything to go by. Since 2013, proptech in India has seen 77 deals being made, amounting to US$928 million.
This reported figure of deals is the highest in the Asia-Pacific Region, thereby lending weight to the notion that the real estate space in the country is really forging a path through technology. In mid 2000s, property technology arrived in India with the emergence of online property marketplaces. This growth story has now expanded with the introduction of real estate software solutions and other mobile technologies.
The advent of technology
The rapid adoption of multi-fold property technology provided by leading edge tech companies in the space is turning out to be a key differentiation for developers, construction companies, and real estate and construction consultants across various segments.
For too long, real estate buyers and builders have grappled with unorganized and inefficient project management. Now, real estate consultancies, armed with real estate ERP solutions (Enterprise Resource Planning), cloud based SaaS (Software as a Service) offerings, project management and customer service, have entered the picture.
Implementation of large-scale and end-to-end ERP solutions has helped real estate businesses to optimize time management, project costs, resource allocation, inventory management, procurement strategies, and overall operational efficiencies like never before.
The innovative capabilities of drones, Augmented Reality (AR) and Virtual Reality (VR) are also bringing finer property purchase experiences to the citizens who can now keep a tab on project completions or review potential residential prospects. Drones are also paving the way for RT mapping and better surveying. Then, there is also the prospect of big data and machine learning that is enabling better efficiencies in prospecting, customer service, procurement, and logistics.
As real estate players in India begin to allocate the globally-accepted 3% project costs to software implementation, massive reduction in cost, planning, and operational inefficiencies has taken place. Online property platforms are enabling the growing smartphone and internet-equipped population to interact with real estate sellers and brokers in a seamless, hassle-free way. Consequently, much needed transparency and customer satisfaction has been brought to the industry.
Finally, technology has resulted in faster completion of better and smarter real estate projects, especially on a national scale. This dovetails splendidly with the government’s infrastructural development programmes of smart cities, affordable housing and industrial corridors, and is also attracting more investment in the sector.
Come 2030, and India will be the 3 rd largest real estate market in the world according to industry estimates by KPMG and NAREDCO. By that time, real estate will also contribute to over 15% of India’s GDP. Given the way technology has proliferated the sector of late, it is safe to conclude that property technology or PropTech is playing a major role in bringing India closer to these excellent numbers.