By the end of 2020, it appeared that the Indian Realty Market growth strategy had returned, and that we had successfully navigated one of the pandemic’s most significant recessions. However, the recent increases in covid infections, as well as the imminent threat of several variants, have cast a cloud of doubt, severely affecting lives and businesses. A 300 million vaccination goal will help the economy in the final two quarters of the year. This will be aided by India’s most globally recognised real estate sector, which is expected to grow to Rs. 65,000 crores by 2040.
With the recently implemented real estate laws and the evolving economy, the Indian Realty Market is also very dynamic. Buyers and developers are both adapting to the changing landscape. Rapid urbanization and an increasing millennial population are driving increased technology adoption. Developers are creating new property formats to capitalise on the changing environment. The Realty Market has been completely transformed by technological advancement. Significant technological advancements in India’s real estate industry have occurred in recent years, which can improve planning and governance, development efficiency, operations efficiency, and overall customer experience. As a result of the pandemic, real estate technology adoption has accelerated.
Adoption of Technology
The adoption of technology is growing rapidly among developers in order to improve resilience, stability, and business continuity. PropTech (property technology) has been one of the most prevalent real estate trends in recent years. With the rise of innovation and data democratization, it has become a common tool to improve business performance and end-user experience. Because of the Covid-19 situation, there has been a greater emphasis on implementing collaborative technology and PropTech for business. Blockchain, augmented reality (AR), and artificial intelligence are the top three most important and widely used technologies in PropTech (AI). According to the most recent Magicbricks Owner Services consumer survey, with digital adoption increasing in India’s real estate sector, tier-2 cities have seen a twofold increase in homeowners, and landlords are using online services to sell their properties during these unprecedented times.
The market for innovations in commercial and residential real estate is becoming more standardized and focused on innovation.
Virtual and Augmented reality revolutionizing real estate
Emerging technology and a variety of virtual reality (VR), augmented reality (AR), and 3D programmes are reshaping the way real estate is designed, built, marketed, outfitted, and used. VR technology is being used in the residential sector to support consumer purchasing by allowing potential buyers to take a virtual tour of the properties digitally via 3D apps from anywhere in the world. The pandemic, as well as the subsequent lockdown, has accelerated technology-driven virtual purchasing. To reach out to homebuyers, developers use a variety of technologies, including 360-degree drone views using Matterport 3D technology, the use of special 4K cameras, dollhouse views, measurement mode, floor plan view, downloadable floor plans, image capturing, voiceover, autoplay, and so on.
VR/AR technology is also improving a variety of processes in corporate real estate. In addition to headsets, avoiding physical travel and traditional desk stations and computer setups are examples of virtual conference rooms.
The rise in Smart Buildings
PropTech solutions enable the rise of smart buildings, in which design elements come together with the best operational and energy efficiencies in mind. PropTech and Big Data in portfolio management aid in cost savings, increased margins, and improved tenant relationships. It is also closely related to space efficiency and employee productivity. Monitoring space usage (via apps, smart sensors, etc.) is becoming more popular. The covid outbreak appears to be acting as a catalyst for change, with companies rushing to implement these technologies.
Some real estate firms are utilizing technology in the following areas: – Hydrological survey and watershed management via satellite mapping They are also applying physics principles to the built environment, such as hygrothermal analysis of buildings, dynamic building simulations for resource efficiency, sustainability, and improved indoor environment performance, among other things.
Real estate transactions have traditionally been time-consuming and labor-intensive, with voluminous paperwork. Real estate agents used to have to meet with clients every time a document needed to be signed, which was inconvenient at times. However, technological advancements have made the path much more accessible, with several early innovators bringing the transaction process online via e-sign documents. Due to social distancing and fear of covid, now the developers have begun to fully utilise the technology. Developers are now putting all transaction documents inside one transaction hub where lenders, agents, and clients can interact and view all stages of the transaction.
The digital era meets construction
The corona pandemic has made people realize that investing in Realty Market is the safest option. The physical world, on the other hand, is equally important. People still want to see and meet other owners, as well as read reviews online and in person. In the future, these two things will go hand in hand. Digital records provide information about the reputation, financial status, delivery history, pricing, and business practices of a developer. This, combined with the experience of a developer’s existing homeowners, forms the crux of the decision-making process for home buyers.
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The blockchain network will soon allow real estate players to digitize the ledgers of purchase transactions. This makes it impossible to manipulate the data, further protecting the deemed customer. Additionally, machine learning will enable prospect interactions to be much more personalized and privileged.
Due to the availability of so many options, developers are under pressure to offer higher-quality products, services, and amenities. In the wake of the pandemic, several less serious players have dropped out of the real estate industry. Along with combating the virus, it is important to develop tools that facilitate the purchase of a home. With further developments, the Indian real estate sector appears to emerge as the dominant sector of the future economy. The ability of the economy to respond to rapid change will demonstrate its potential as a growth engine.