Proptech offers an assortment of technologies that are helping to build modern homes in India. 37% of homebuyers are willing to close deals after a first site visit. And, all are looking for convenient homes.
India, compared to global digitization, is running behind, especially in the real estate sector. Although implementing technology to find a better way of living or Proptech was introduced in the early 2000s in India.
The first stage lasted for nine years, and it consisted of the emergence of online marketplaces. Several well-known online real estate sites were coming up with micro-market specific listings for both residential & commercial projects. There was also a private equity investment made in 2009 for the online real estate portal Commonfloor.
After that, in 2011, the entry of tech-based startups in the real estate sector was introduced. Both startups and cutting-edge technology in the sales and marketing segment started to receive funding. Besides, GST and RERA were inducted in 2016. Overall, the investment in Proptech crossed USD 0.5 billion in 2018. It then confirmed its potential for the Indian market.
Finally, in 2021, the post-lockdown scenario has the best services to offer to both developers and buyers of a property. The new technology helps buyers and sellers to contact instantly via an online marketplace. Usage of Virtual Reality, Drones, Internet Of Things (IoT), Big Data, and Artificial Intelligence (Ai) gives a new dimension to Proptech driven projects. This year, a total of USD 551 million investment has been made, and it’s the highest number despite the global pandemic.
Nevertheless, due to the lack of transparency in the online property description or inadequacy of uniformity of civic law, liquidity crisis, impeded projects, and default developers have put off multiple potential customers from closing the deal. However, these issues are going to be solved in upcoming years, and we will address why.
Technologies making Proptech the future of the real estate
Proptech or Property Technology is a term associated with several technologies that make our living choices simpler. Therefore, it is essential to know about the technology that is incorporated in the digital transformation of the land. Starting with:
Perhaps the best implementation of technology in Proptech is Drone. Also known as the Unmanned Aerial Vehicle. It is the best companion for developers to avoid physical visits to the site in times of social distancing. Drones are used in properties for data collection, videography, delivering objects, photography, mapping, surveillance of the construction, and many other things.
It also works as a savior to detect early construction problems and induce efficiency in the process. Interestingly, post-lockdown, the purchasing rate of drones has skyrocketed. The Indian drone industry and the market are expecting a total of USD 800 million in investment by the end of 2021.
- Virtual Reality
Virtual reality that helps create a simulated environment acts as an outstanding device in the real estate sector. It is the best device that developers use to provide an estimated look of the property to its potential buyers. VR gives a near-reality experience by displaying properties and the surrounding rooms. It, along with AR, provide another layer of realistic projection of a property. Thus, it stimulates the user interactive experience to a whole another level.
- Internet of Things (IOT)
For smart homes, IOT helps the buyer to get the home automation and management concept. It includes assisting in household chores, energy-saving, maintenance prediction, and improved residents satisfaction. Thus, the real estate developers, along with startups providing similar services, have bagged USD 76 million in funding till now.
- Big data & artificial intelligence (AI)
The combined effort of big data and artificial intelligence has been implemented in several sectors of various businesses. However, in real estate, AI and big data help gauge property values and provide a customized buying and selling experience. It helps in building a substantial buyer and seller engagement. Many companies in the US are planning the scheme to develop a friendly interactive experience in the industry.
- 3D printing
3D printing paired up with virtual reality can do wonders for both developers and buyers. A great replacement to the traditional way of designing, 3D printing gives a relatively clear image of a finished or undeveloped project. It contains a mobile-sized printer with robotic arms to inoculate cement into a property’s digital framework and make it look more realistic. For both external and internal building assessments, buyers love to see a 3D printed image rather than a 2D one.
Software as a Service or SAAS is a subdivision of cloud computing. Although it allows individuals and organizations to wield software applications via the internet and access matters remotely, it plays a crucial role in the real estate sector. SAAS offers solutions for project management, customer relationship management, sales & marketing, cash transaction, and many other things. Above all, it erases the chance of data inaccuracy or duplication.
To conclude, Proptech is the future of real estate because it’s a concept designed for the future living standard. All the technologies incorporated in this concept will determine the sales of property projects. And it will make it the biggest-selling project ever created.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.