How innovation and technology is boosting smart investments in Indian real estate sector

16 Feb 2022 , 10:35 AM

The past two years have been tough for all sectors, while it’s safe to say this, at the same time has led to enormous technological developments and advancements. Especially in the real estate sector, there have been many technological disruptors in the way the real estate market operates is an understatement. Lately technology is revolutionizing the real estate industry in more ways than one these days. From ‘Smart Cities’ to smart homes, technology is making lives easier and more convenient for new-age buyers.

As the pandemic got worsened there was an immense need to keep the industry going and hence the PropTech solutions played a crucial role. However slow but real estate and technology are finally allies of each other. Presently while all sectors and industries are basking in the sunshine of advanced technology, then why the Real Estate industry should remain in the shadows of outdated methods?

Property technology or simply PropTech has revamped the way we interact with our property, whether it is for construction purposes, property management, home services, buying, selling, or renting it. PropTech is growing and it is here to disrupt the real estate industry space by changing the way investors and customers look at property investments. This transformation for a sector like real estate which by tradition by nature had been slowed to adapt to tech, while the PropTech companies emerged as real game-changers during this period.

New-age tech platforms are helping investors and buyers to scan through multiple properties without stepping out of their homes. This has helped the sector to attract new-age customers by adding value by taking on the real estate industry to make it better spurred by an ever-changing digital landscape and new consumption pattern.

When it comes to assets selection and identification, artificial intelligence has predominantly optimized the entire decision-making process. Well-designed AI algorithms can constantly test the feasibility and impact of different parameters depending on the search and need of the customers. This can often result in significant insight for the customers and by identifying such variables and evaluating their impact on multi-scenario probabilistic models, the asset selection process over time has evolved from subjective evaluation to deterministic and measurable.
From smartphones to smart homes, the new-age middle-class Indians wants to have it all, and especially there, it is a big opportunity for the real estate sector and developers to tap this customer base. This industry has undergone several changes and has seen a tectonic shift in the last decade, while new and unique concepts like fractional ownership, PropTech solutions opening a new safe and profitable avenue of investment for retail investors in premium A-grade office real estate, which was earlier beyond the approach of the middle class as an investment capacity.

With many news startups bringing modern technology-based solutions to the table, things have only turned for the better for the real estate industry. PropTech has helped the real estate sector to bounce back after a challenging period of the last few years. These tech startups are not only bringing the latest technologies onboard, but they are also helping businesses with marketing and sales initiatives which is one of the major ways investments can be pulled in this sector.

From going through the extensive paperwork for buying the property today the process has become smooth with most of the documents being digitally signed and vetted by all stakeholders making it easier for the homebuyers and the real estate agents. Many developers are now adopting technology at a much faster pace to enhance bring in modern solutions, maintain stability build resilience, and ensure business and real estate continuity.

While the rise of innovation and data democratization, is being used extensively to improve business performance and enhance the end-user experience. The platforms for property search were already gaining popularity as millennials and young professionals as they find it easy to look for a property online in the comfort of their homes, just by using a mobile phone. With everything being available online and a dramatic surge in smartphone users, there is a potential business opportunity for these tech-based companies to further attract prospective buyers.

The author of this article is Mr. Vineet Goyal, Jt. Managing Director Kohinoor Group

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com