There has been a growing buzzword in the Indian real estate industry related to Proptech. The term has been derived from two words Property and Technology . It implies technological-driven product and services in every aspect of the real estate industry. Today, every step of the real estate life cycle is being relooked and tried for redesigning with the help of technology. The industry has typically been very capital and labor intensive, with almost present formulas and formats of working. As the industry has been one of the highest employment generators, many professionals are looking at the sector with technology lenses.
The inclusion of technology has started from the very basic of land procurement. For example, various government authorities are in the process to digitize land records. Additionally, land chrematistic is now available online (Google maps, geotagging, etc.) and can be analyzed and compared. On the other hand, the development process in the commercial, as well as residential space, has witnessed innovations. Even in the industrial and warehousing sector, technology is playing a very important role in terms of developing an ultra-modern and state-of-the-art project. The projects are not only catering to customer specific needs, but these are very cost-efficient and highly durable.
On the services side, technology has played a huge role. With the help of technology, the property management section of the real estate industry has grown by leaps and bounds. The landlord/ developer can now track more efficiently and monitor the development process in real time. On the other hand, the home buying experience has now evolved exponentially. Beginning from the search of the property till the deal conclusion, there are various service requirements like location search, project options, layouts, amenities, infrastructure, current development state, cost structure, and payment plans, etc.
Earlier, this was a painful and inefficient process where the customer seldom used to get a very transparent and effective deal. However, with technology inclusion, the total process has been revamped. All the aspects of renting/purchasing have now been made more transparent, comparative at one place, with real-time experience through virtual reality. This has benefitted both the seller and buyer exponentially. Through technology inclusion, the developer has reached a larger audience and achieved cost-effectiveness. On the other side, the buyer has access to more variety of project in many geographies, with more information and exposure to feedback, thus leading to higher confidence in undertaking any transactions, which has resulted in an increase in overall business.
To conclude, there is absolute evidence of greater penetration in each aspect of the real estate life cycle, which has benefitted all the stakeholders in the industry. The technology has not only challenged the erstwhile methods but has enticed a lot of young and talented professionals to work in the sector. With the increasing efficiencies, many international players have increasingly shown interest and participation in investment, development, and marketing of the project. Though the real estate sector has witnessed technological developments, there is much more to be explored. Therefore, the future of the real estate industry will not only be interesting to watch for but looks promising and efficient in times to come.
(By Amit Chawla, Senior Associate Director, Valuation & Advisory Services at Colliers International India)