Adapting to technological advances is not a new thing in this modern era. Every direction you turn to, every aspect of your life you look at, and every step you take in life is related to the leaps and bounds of science and technology.
In such a scenario, real estate is a late entrant, one might say. The industry in India is expected to grow from $200 billion in 2021 to $1 trillion by 2030, according to a joint report by NAREDCO (National Real Estate Development Council) and EY (Ernst & Young).
Embracing Technology
Although other industries have long embraced innovations such as cloud storage, sensors, and mobile tech, the real estate sector has taken a little longer to start widely adopting these technologies. There are a few reasons for this.
First, realty is a traditional industry, and change can be slow to come. Second, real estate transactions are often complex and involve multiple parties, which can make it difficult to implement new technologies. Third, the sector is highly regulated, which can also make it difficult to adopt new technologies. However, there are now several reasons why the sector is starting to adopt new technologies more widely.
The cost of these technologies has come down, making them more affordable for businesses. Additionally, the benefits of these technologies are becoming more clear, as businesses see how they can improve efficiency and save money. Also, the government is starting to support the adoption of new technologies in the sector.
One such extremely important and efficient advance is proptech (or property technology). It is a type of software that helps real estate and property companies manage and optimise their portfolios throughout the entire lifecycle of their buildings, by automating tasks, providing insights, and connecting people and data. They can also help with everything from marketing and sales to property management and maintenance.
Convergence With Fintech Firms
Proptech and fintech are two of the most rapidly growing industries in the world, and they are increasingly converging. Proptech companies are using technology to improve the real estate industry, while fintech companies are using technology to improve the financial services industry. These two industries are connecting in a number of ways, including partnerships, and competition.
Partnerships: Proptech and fintech companies are partnering with each other to offer new products and services. For example, a proptech company might partner with a fintech company to offer a mortgage lending service.
Competition: Fintech companies are starting to offer real estate-related products and services, such as online mortgage lending. This is putting pressure on proptech companies to innovate and offer better products and services.
The convergence of proptech and fintech is creating new opportunities for both industries. This also makes it easier for people to buy, sell, and rent real estate.
What Are The Solutions?
Proptech solutions are also constantly evolving, and new solutions are being developed on the go. As the real estate industry continues to digitise, proptech solutions will become even more important for businesses of all sizes.
Some of the most popular proptech solutions include property management software (helping with tasks such as tenant screening, rent collection, and maintenance scheduling), real estate marketing software (helping with listing properties, generating leads, and managing listings), virtual reality (VR) and augmented reality (AR) solutions (helping potential buyers and tenants to tour properties without having to physically visit them) and blockchain solutions (helping track and manage property transactions more efficiently).
Improving Customer Experience
Such solutions are also beneficial for fintech firms in improving the customer experience by making it easier for customers to apply for loans and track their progress. It also reduces costs by automating tasks and streamlining processes.
Moreover, such solutions also increase efficiency by making it easier to access and analyse data, thereby improving decision-making by providing better insights into the market and customer behaviour.
Proptech also helps increase innovation in the industry by providing new ways to deliver products and services.
While it brings everything — from online property marketplaces to real estate analytics platforms, smart building technology, virtual and augmented reality tools for property viewings, property management software, and automated property valuation tools — under one umbrella, proptech is also a great way for real estate developers to improve efficiency, efficacy, productivity, and bottom-line results. This technological advance will prove to be an essential part of Indian real estate in the future, and will only provide more opportunities for growth and profitability.
(The author is founder and chief operating officer, BASIC Home Loan)
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