Technologies in Real estate: Real estate is one of the few sectors that has consistently provided investors with reasonable returns over a long period of time. There aren’t many pockets in the sector that have given negative long-term returns. However, real estate developers and builders have always faced cash flow issues and challenges. Despite the government’s best efforts, the sector remains unorganized, which contributes to the uncertainty. Second, there is no proper mechanism in place to ensure that construction takes place on time, that raw material prices are reasonable, and that labor issues receive attention. Customers have benefited greatly from GST and RERA, but developers have been subjected to more stringent laws and processes over time.
The biggest flaw in the industry has been that it has never looked to technology as a solution to any of the problems it has encountered. Covid was a wake-up call for the industry, causing developers to recognise the urgent need for tech-based interventions. During Covid, technological interventions aided developers in ensuring better profitability, on-time project completion, and the resolution of financial issues related to capital requirements.
More and more real estate companies should adopt technology in the future. It will not only make the real estate work model more structured, but it will also attract companies that will profit in the long run. There are five reasons why businesses should invest in technological advancements.
Technology helps maintain right inventory
One of the most difficult challenges facing the industry is keeping up with rising raw material costs. Cement and steel prices have nearly doubled in the last year, rising by 30 to 80 percent. It is the most common cause of project cost overruns. Technologies can help you keep the right inventory for a longer period of time while avoiding price increases. It can aid not only in inventory management, but also in delivering the correct final product pricing, taking into account raw material price inflation.
Technology can mitigate the work-force demand supply gap
This has long been a source of contention among developers. For the developers, the recent pandemic has been even worse. The exodus of workers from cities to their hometowns was a nightmare come true. This was a one-of-a-kind event, but labour has been a persistent issue for the industry. Why can’t the industry adopt technology that allows workforce requirements to anticipate in such a way that day-to-day needs can be defined using concrete tools? Smart tools based on needs are available to assist developers in understanding the day-to-day needs of a project’s workforce.
Lowering operating costs
Developers can save money by using automation and smart building technologies. These smaller technological advancements can reduce manpower costs, which will undoubtedly boost revenues in the long run. The ability to save man hours as a result of technology adoption would be a bonus.
Tracking daily activity
Every day, with real-time results, it is possible to monitor the construction area. It can also assist in setting appropriate targets for the workforce, resulting in increased productivity on the construction site. It can assist in identifying and rewarding the most productive employees. Here, technologies plays a critical role in boosting employee morale, which can lead to increased company growth.
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Optimization of work force
In the real estate industry, a data-driven workforce and workplace planning can open up a lot of doors. Companies have always sought out new ways to control the majority of their operating costs. This is directly related to the real estate industry’s workforce management. The pandemic has taught us how to use technologies to optimize the work force, even when working remotely.
We, as societies and industries, are always looking for ways to improve. Real estate is one of the most important sectors in the country, contributing directly to GDP growth and job opportunities in cities across the country. While government assistance is necessary to keep the sector moving, such as funding, companies must continue to look for opportunities that will improve the sector’s overall performance. One such important pillar is technological adoption.