Proptech – Digital Revolution in the Best Real Estate Companies in India
Posted On February 14, 2023
The use of technology is transforming industries around the world, and the real estate market in India is no exception. From virtual tours and AI-powered property matching to online transaction platforms, these innovations are revolutionizing how we buy, sell, and manage real estate in India, bringing greater efficiency and convenience to the market. It is not a stretch to say that most of the top real estate companies in India are investing heavily in technology.
Though the concept of using technology to improve the real estate industry is not new, it is only over the past several years that it has seen significant growth and investment. This trend is expected to expand and evolve in the coming years.
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Proptech, short for property technology, refers to the use of technology to improve and disrupt traditional processes in the real estate industry – including software to streamline property management, virtual reality for remote home tours, or data analytics to make more informed investment decisions.
Many proptech companies in India use technology to transform the real estate industry. Online platforms help users search for, compare, and find properties to buy or rent and offer other services such as home loans and property management.
Benefits of Technology
The use of technology has many benefits for buyers and sellers, such as quicker and more straightforward processes, greater efficiency, and access to a broader pool of potential buyers or properties.
Let us explore the various technologies used in the Indian real estate market.
Potential buyers or renters can take a virtual walkthrough of a property from the comfort of their homes. These tours are accessed online and use 360-degree videos and interactive media to give users an immersive experience. A handy and efficient way for buyers to view properties, particularly those who cannot visit the property physically.
AI-powered property matching
A type of technology that uses AI algorithms to match buyers with properties that meet their specific criteria. By analyzing buyers’ preferences and search history, AI-powered property matching can help buyers find properties tailored to their needs faster, saving them time and effort.
Online transaction platforms
Digital platforms allow buyers and sellers to complete real estate transactions online, streamlining the buying and selling process. Online transaction platforms usually offer features such as secure payment portals and electronic signing capabilities, making it more convenient for all parties
Cost of Using Technology
The cost implications of using technology in real estate can involve significant upfront costs, including purchasing or developing the technology, training staff, and integrating it into existing systems and processes. It depends on the specific technology being used and the size and scale of its implementation.
However, using technology in real estate can bring cost savings in the long run. For example, online transaction platforms can reduce the need for expensive and time-consuming physical meetings and paperwork. AI-powered property matching can save buyers and sellers time and effort in their search for the perfect property. In addition, technology can help streamline and automate specific tasks, reducing the need for manual labour and lowering costs.
Change in Traditional Roles
With technology becoming a vital part of the industry, there is a fear that digital tools may reduce or even replace the role of traditional brokers and agents in the market.
However, technology is only sometimes a replacement for these professionals. Instead, they should use online tools to manage listings, communicate with clients or utilize virtual tours to showcase properties in a more immersive and interactive way. Traditional brokers and agents must adapt and evolve to remain competitive and relevant, using technology to augment and enhance their services.
Challenges in Adopting Technology
According to IBEF reports, the real estate sector in India is projected to grow to a market size of US$ 1 trillion by 2030, contributing 13% to the country’s GDP by 2025. Retail, hospitality, and commercial real estate are also experiencing significant growth to meet the country’s infrastructure demands.
Several challenges hinder the broader adoption of technology in the Indian real estate market. One major challenge is digital literacy among some population segments, particularly older individuals who may be uncomfortable using technology or need access to the necessary devices.
There is a need for standardization and regulation in the use of technology to avoid confusion and mistrust among buyers and sellers. This is particularly true regarding online transactions, which users must trust.
The industry must invest in education and training programs to help people understand and use new technologies, including training and support for real estate professionals and offering resources and guidance for buyers and sellers.
Establishing clear guidelines and regulations for using technology in real estate will build trust and confidence among buyers and sellers. The way forward could include the following:
Creating industry standards for virtual tours.
Defining best practices for online transactions.
Developing guidelines for using AI and other emerging technologies.
Overall, while there are certainly challenges to overcome, the potential benefits of technology in the Indian real estate market are significant. By addressing these challenges and embracing new technologies, the industry can help to drive innovation, improve efficiency, and enhance the overall experience for buyers and sellers.
At Save Max, we believe that the right balance of technology & human connect is the mantra for our business.