Technology has significantly affected various sectors in the country and around the globe. And one such sector is the realty sector. The evolving technological advancements have a positive impact on the real estate industry. These advancements in technology have not only opened the gates for new prospects but has also improved efficiency to empower new products and services and has provided transparent gateway for transparent communication. Real Estate is one such industry where it was necessary to establish a transparent means of communication since it contributes nearly 7 percent to the Gross Domestic Product (GDP) of the country. Implementation of RERA and digitisation has now made this seemingly impossible task possible.
With technological advancements, the realty sector has also witnessed some major breakthroughs. For example, a home-owner looking for potential tenants, or people opting to buy a house for the first time, or corporate channel partners/brokers/agents promote housing project more on digital media than the print media. According to a report by Global Digital Report, 2019, there nearly 3.484 billion social media users globally. In today’s world where everything is available right at your fingertips, what is the role of technological development in boosting real estate industry? Let us take a look at some of the technologies and trends that are set to revolutionise the Indian Real Estate in the coming years, sequentially.
Technological Development in Real Estate
Buying and Selling | Personalized Recommendations | Calculating ROI:
Introduction of various online digital platforms that allow renting, buying and selling of properties has provided the potential users with a plethora of options. These platforms have enriched the digital medium in case of real estate and enabled a mode for transparent communication. The main aim of these platforms is to ease the process of buying and selling for people by providing them an interface which is easy to browse through. The interface is designed in a way that also allows them to personalize or filter their search results according to their requirements.
For example, an IT professional working in Hinjewadi might prefer to opt for a 2 BHK home within a radius of 5 kilometres. And these platforms have categorised listings according to the area and locality, which makes it easier for the professional to sort through various listings and helps him find his/her ‘ideal home’. These platforms save your time of browsing through hundreds of properties as they readily provide property listings according to the locality you prefer, the unit configuration you’re looking for and your budget.
Coming to the budget, some of these platforms also provide you with an EMI and eligibility calculator based on your income. Whether it’s your time or money, you need to ensure that you’re investing in the right place, and the advent of technology will help you exactly do that. Owing to the prevailing big data and machine learning algorithms, professionals in real estate will be able to learn more about the ROI of their and their customers or clients transactions. These algorithms can also help investors filter deals (as per their needs). Thus, enabling investors to make smart investments.
Virtual Reality (VR)
Virtual Reality (VR), has been implemented in almost every industry in the country, and no sooner it is catching up in the real estate industry as well. One of the important aspects associated with purchasing or leasing a property is to view a property. Sometimes, it can be difficult to view a property if you are moving to another city or if you don’t make it during the visiting hours. In order to overcome this shortcoming, VR allows potential home-buyers and tenants to virtually view (panoramic/360 view) the property. Considering this need of the customers to view the property, developers now provide the channel partners with a clip of virtual walkthrough of the property i.e. how your home and its surrounding area will look once the project concludes or is ready for possession. This VR trend is soon catching up the realty sector in India as well.
Blockchain technology has recently been a centre of attraction for its potential as a pillar to cryptocurrency. And so, the prospect of cryptocurrency has been extended to real estate industry as well. There are an endless number of possibilities to deal with as far as the use of blockchain technology is concerned in real estate. Owing to tokenization, landlords can use blockchain to sell certain part of their property or ownership. Encryption and built-in legitimacy checks can be used to seal the deal between buyers and sellers.
Considering all of these factors, we can say that real estate industry has significantly evolved since the last decade and yet, there’s a long way to go in terms of technological prowess. Thus, the realty sector in India is said to witness a massive paradigm shift with the advent of VR, blockchain, and the cloud technology.