How Tech Is Driving Indian Real Estate Resilience: Trends and Future of Real Estate Market

The role of technology in today’s digital age has transformed businesses from a backend enabler to a core division of business strategy in various industries. With the pandemic accelerating several organization’s digital transformation strategies, the Indian real estate industry was no exception. Real estate companies in the country have been traditional in their approach. In terms of agility and promptness to adopt the evolving tech-enabled market, the landscape has been exemplary. It has helped drive real estate resilience and safeguards their future growth by stabilizing their existing business.

Trends Shaping A Strong Real Estate Market Despite Pandemic

In order to retain customers, it is very essential for businesses to focus on ensuring the safety and well-being of their customers while fulfilling their needs. This is possible only when businesses include tech in their business models, which is the utmost need of the hour.

The country’s real estate market has to register invincible resilience against the pandemic, which hit a certain segment of the population the previous year. The sector has suffered several setbacks, even then it has managed to quickly adjust to the new normal with several digital technological methods. It is now back on track at a faster rate. The sector demonstrated promising growth from the period third and fourth quarter of the year 2020 till date.

 

Despite consecutive lockdowns showing a ripple effect, the industry was well prepared with tech-enabled methods to handle the uncertainties.

Low-interest property rates, the latest customer-friendly government policies, flexible payment plans, easy investment opportunities and the use of technologies have played a vital role in driving this growth. The latest trends show that 80% of prospective homebuyers are looking to acquire a house within the next year, while 65% of the homebuyers preferring ready-to-move-in houses since 2021.

When the market is evolving, new trends will always have influence over it and constantly shape the sector. A well-managed infrastructure of gated townships, high-rise apartments and luxury towers will continue to dominate the ultra-luxury segment in the real estate driven by NRIs.

Virtual Reality

Several real estate companies were looking forward to bridging the gap during the lockdown, which avoided prospective homebuyers visiting on-site.  The gap between seller and buyer is very much fulfilled with the help of virtual reality (VR), enabling property tours virtually. Even though everything is back to normal, virtual tours make it convenient for NRIs & people not present physically to tour the property and invest.

Reality firms introduced 3D virtual tour features of their properties on the website. This helped them to ensure a seamless experience for their potential homebuyers. As a result, builders are able to reduce the lead time conversions to a great extend.

In the near future, builders and developers are able to design virtual walkthroughs by integrating VR with Building Information Modeling (BIM).  Therefore, the VR will let them have more control over the property designs right from the initial states. It will help them save both time and money.

Artificial Intelligence & Machine Learning

The real estate sector is adapting to the data-focused approach and making progress in defining customer segments for artificial intelligence utilization. The AI is helping them analyze their customer behavior and monetize the services as per their needs. Additionally, tech-savvy CEOs and managers are acquiring knowledge on the application of data analytics to gain a competitive edge in the market.

Since AI infiltrating every other industry, it is always wise to explore what technology like machine learning can deliver in the real estate sector. Currently, there is sufficient data of AI technologies to show promising growth in multiple areas of an organization.

The integration of artificial intelligence and machine learning solutions is helping real estate companies monitor and eliminate issues related to construction variations that negatively affect infrastructure progress. Alexa for Residential is one such instance of an AI product. It helps to deploy and manage devices and experiences for communities and residential properties. Thus, simplifying and streamlining the property management process. AI is also capable of building contactless operations with a safe experience for both employees and customers.

Video Conferencing

With the extension of the new normal where work from home culture is thriving, the use of video conferencing applications has become crucial. Builders and developers are using various video conferencing solutions to interact with prospective homebuyers at once. They also organize webinars about their projects to attract potential investors.

These virtual modes of conferencing solutions will help sellers save their precious time. However, the platform enables them to make closures across geographies. Video and drone footage feeds ensure better conversions as per the data of customer’s purchase decisions gathered using AI platforms.

Future of Tech in Real Estate

Today’s technology in real estate has created an ecosystem for disruption, several advancements, and the elimination of traditional working models. In the coming days, the real estate sector can accept several advancements such as 3-D printing, pre-fabrication of building structures.

Recently, Hon. Finance Minister inaugurated India’s first 3-D printed house at IIT-Madras. This is the major step towards revolutionizing the affordable housing segment in the real estate industry in the future. Therefore, it will assist the development of 100 million homes by 2022.

These technological developments will inherent more opportunities and building greater resilience within organizations. On the other hand, real estate players become more risk-averse. Building a recall value of the brand and enhancing the customer experience will always boost the growth of an organization. Enhanced inclusion of AI, VR, and machine learning technology will help brands emerge stronger in the near future.

The recovery of the real estate sector is accelerated by the robust digitalization efforts and latest technological deployment. The consistency of these efforts will pave the path for the growth of the industry-transforming the customer experiences. It eventually and stabilizes the organization’s process.

These technological trends will generally evolve to a greater extent and establish a stronger digital future. Most importantly, several trusted real estate companies will gain a higher market share. Generally, these builders and developers will have strong financial backgrounds and excellent records of accomplishment. In such scenarios, the preferences of prospective homebuyers also change as per the supply from those giant sellers. Homebuyers need builders and developers who can satisfy their demand as per the existing trends with the use of the latest technology. In general, customer centricity will always be the norm and it can also lead to better customer satisfaction.

A rise in property prices is also expected with economic recovery and vaccine roll-out. Since there is also a great demand from foreign investors, foreign investment will continue to stay on trend. Thus it builds confidence in the sector.

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