Advent of technologies like Virtual Reality (VR), Artificial Intelligence (AI) and Blockchain have positively shaped the basic working structure of various industries. And one such industry is the Indian real estate sector. Introduction of Property Technology, ‘proptech’ in 2005 has played a key role in shaping the way properties are sought, bought and managed today. PropTech can be defined as the use of IT services that helps connect buyers, sellers, property managers, landowners, channel partners, brokers, etc. together. In simple words, it helps individuals sell, buy, manage property and its related services through an online platform. 99acres.com, PropTiger, Magic Bricks, FourrWalls, etc. are some of such platforms.
These platforms or portals provide ease of access to a number of properties across cities. These portals have listings of properties for every budget and almost every real estate requirements. In other words, we can say that these portals have opened gates for transparent communication and eased home-buying experience for many. These portals now have started using VR and AI to let buyers know get an artistic view about how their house and its surrounding area look once it is ready for delivery or possession.
A report by Goldman Sachs states that the scope of VR will hit USD 80 billion by 2025, out of which real estate will account for nearly USD 2.6 billion. Though very few developers and portals have started using these technologies but this trend is soon catching up in the Indian real estate industry as well. In other words, virtual walkthroughs is one of the trends that will redefine the realty sector, globally. Along with VR, there are certain other technologies as well that will prove to be driving factors for the real estate sector globally. Let us take a look at these factors.
Augmented Reality (AR), Virtual Reality (VR) and Real Estate Industry
With the advent of AR and VR in the realty sector, catalogue and brochures will merely be an informative piece of paper. Physically visiting various sites and then finalizing on one is a time-consuming process. And so, in order to ease that process, VR and AR have been introduced in this sector. The primary purpose of introduction of VR and AR in the realty sector is to enable potential buyers to get a virtual view of the end product of their property. The virtual tour consists of virtual walkthroughs right from the entrance of the venture to the entrance of the house to nooks and corners of every room.
The secondary benefit of using this technology is that you can access these virtual tours without leaving your space. Also, augmented reality enables developers to showcase the final output (of apartments, amenities, landscape and the vicinity) of the venture which is under construction through mobile phones and other similar devices. A mobile application designed to run AR can be used to easily get a virtual view of the deliverables.
Artificial Intelligence (AI) and Real Estate
According to a report by Economic Times states that in India and China, Artificial Intelligence is being adopted by various real estate companies to develop applications that include machine learning for data analysis and carrying out surveys for construction of buildings and related structures. The same report includes a research by Zion Market which states that countries included in Asia Pacific which contribute nearly 40 percent to the construction globally.
This, in turn, can substantially reduce the dependability on real estate brokers or agents to buy, sell or lease property. Thus, reducing overall commission charges of the brokers.
Blockchain and Real Estate
Blockchain can be defined as a system that enables storing of data or linked records in blocks using cryptography. This technology is directly and indirectly dependent on AI and use of Internet of Things (IoT). A report by Housing explains the use of blockchain for real estate industry as, “many processes within the real estate development life cycle such as product specification, pricing, smart contracting, procurement, property registration information, project progress, customer profiling, product design, customer preferences, etc.can be processed through the blockchain technology to reveal realistic data, which can be used as business intelligence to drive sustainable operations.”
Considering all of these factors, we can surely conclude that AR and VR, AI and Blockchain will positively shape the future of the real estate sector globally.