The leveraging of PropTech in Indian real estate will result in positive customer sentiment and spell cutting-edge business growth.
In the post-Covid world, technology integration in all aspects of business and way of living will be at its best. Digitization has led to a radical shift in consumer experience and construction development in more profound ways with the integration of new-age property technology i.e PropTech.
Technology simulation is reinventing business models and revolutionizing the real estate sector like never before. As the industry now equips with automation and mechanisation, leveraging IoT and PropTech expertise is the next best logical step to make it future-ready.
Tools and Business Goals
As a result of the Covid pandemic, technology has permeated in every facet of real estate business with quick adoption of global best practices, making it a more renewed holistic experience. Prop-tech has been more prevalent in global markets, until the Covid pandemic made the very presence of Prop-tech application felt in Indian real estate for doing ‘new age’ way of business. The technology infusion in the form of Building Information Modelling, Artificial Intelligence, Machine Learning, Internet of Things, Augmented and Virtual Reality, Fintech and Crowdfunding, Big data and Blockchain technology is now happening at the various stages of project execution, customer servicing, and marketing and sales activities. The resulting benefits from the above innovations are propelling business forward with real time and well-informed business decisions based on granular data insights. As the industry continues to garner value of Proptech integration for achieving well-defined business, social, sustainable, and economic goals, the investment will see an upswing in the Proptech segment.
Innovation and Investment
Fintech and Proptech are new buzz words in the real estate industry. Fintech – an innovation acting as a foundation for the real estate industry to thrive by better management of financial operations and processes. It enabled the online exchanges, online payment getaways, crowdfunding, home loan financing, and many such fin-tech services available to companies, business owners, customers and all other major stakeholders. Together, Proptech and Fintech make the experience of home buying seamless and digitized.
With an extensively growing internet user base in India coupled with government thrust on Digital India will see robust growth and investment in these two crucial segments in the Indian real estate. As growth of real estate is pegged at a CAGR of 10%, of which PropTech will be a major growth lever.
Customer and Cost Centricity
The customer segmentation has evolved in the Covid era, as it seeks more integrated and end to end service for better experience. In the world of experiential living, decoding customer satisfaction levels with better engagement and experience is imperative for the growth of the real estate industry in the right direction. Proptech integration is truly revolutionising the way we interact, buy, and sell properties in a much-streamlined and automated manner. The data analytical tools enable evaluation of rapidly-changing consumer behaviour and buying patterns, which allows real estate companies to redirect their business strategies and goals in real time.
This results in quality lead generation boosting cost efficiency and helping achieve ‘customer delight’. Thus, Proptech leads and promotes innovative ways for acquisition, operation, and management of real estate assets. And to be at global par excellence, staying smart and sustainable will help the sector to stay relevant, productive, competitive, agile, and effectively efficient.
As the Indian real estate sector is expected to balloon to a $1trn market by 2030, and contribute nearly 13% to India’s GDP by 2025, the future of Proptech segment looks promising and galvanizes the desired business outcomes. The leveraging of Proptech in Indian real estate will result in positive customer sentiment and spell cutting edge business growth.
What we have seen so far is just the beginning, there is lots more in the offing. How well we adapt to the new system and leverage it to the best advantage will determine how the Proptech-powered future will turn out.
(By Dr Niranjan Hiranandani, National President, NAREDCO)