PropTech is boosting India’s real estate sector, bridging traditional gaps
In recent years, the Indian real estate industry has been particularly proactive in the adoption of technology. As we move from traditional systems to an “all-digital” future, new technologies, innovations and alternative solutions are impacting virtually all aspects of life, including built environments. In fact, the PropTech market is fundamentally changing the way business is done, in the real estate sector.
The PropTech potential
Until a decade or so ago, the Indian real-estate industry could be justifiably labeled conservative and slow to innovate. However, in recent years the shift towards the adoption of technology accelerated considerably. In fact, by the end of 2017, India was already generating more Proptech deals than any country in the Asia Pacific region(1).
Technologies like Artificial Intelligence (AI), Machine Learning and Augmented Reality hold huge potential to transform customer experience, in real estate. One of the biggest advantages of these technologies is enabling property owners and managers to make data-driven decisions in real time. Proptech optimizes utilization of space, facility management, customer support, business operations, and much more. IoT enabled integration of assets allows real estate businesses to derive actionable insights, and even operate predictively, with the help of AI based analytic tools. With real-time data on building performance, there is larger scope for maximization of revenue by eliminating operational inefficiencies in the system.
According to reports, the real estate sector in India is expected to reach a market size of $ 1 trillion by 2030 and contribute 13% to the country’s GDP by the year 2025(2). A fast growing industry of such magnitude will benefit dramatically with the right adoption of technology. Currently, the PropTech environment in India predominantly features online brokerage platforms. There are also several ventures that focus on smart solutions for homes to enable energy monitoring, waste management and real-time maintenance systems. Innovations like Blockchain technology revolutionized the financial industry, and the same could be said for the real estate sector as well. With property transactions in the country becoming increasingly digitized, the Blockchain technology offers added security against fraud and possible disputes.
An opportune time for digitization
The PropTech market is redefining the relationship between the digital and built environments. The unforeseen barriers of the Covid-19 pandemic have led to restricted interpersonal interactions. With the use of innovations like virtual reality and 3D video tours, customers can experience life-like site visits, without leaving the comfort of their homes. Progressive real estate brokerages in India are already providing a digital platform for buyers and sellers, ensuring a seamless experience that eliminates the intermediary steps involved in buying a property. However, the scope for expansion remains considerable, especially in the arms of the industry beyond brokerage. Technology is no longer a novelty factor in real estate. In fact, several emerging digital solutions are likely to be major enablers in the property sector of the future. These innovations will redefine possibilities within the industry, by helping to break down barriers and bridging traditional gaps.