7 Factors shaping The Property Tech Sector in India

With emphasis on affordable housing and infrastructure growth, India’s real estate industry is indicative of a revival of sorts and is expected to contribute 13 percent to its GDP. Adoption of tech is set to bring about major disruptions in the real estate property transactions space. Property Technology or PropTech as defined by Matt Wong from CB Insights, “is a set of cross-industry technologies changing the way we research, rent, buy and manage property.” This digital revolution is a significant transformation which has taken the real estate industry by storm.

Some of the factors shaping the property tech sector in India are big data, artificial intelligence and automation. These will constitute the backbone of smoother user experiences, smart and resilient cities besides bringing about mobile-centric technology which is disruptive and transformational to say the least.

Blockchain

The real estate industry in India is adopting Blockchain Technology at a rapid pace. This technology is intended to upscale faster adoption and more secure transactions; it also tackles fraud, eliminates middlemen and intermediaries, upholds data integrity, and brings about minimal intervention thanks to data encryption, transparency, convenience and efficiency which by and large involves several transactions between multiple stakeholders, both private and public.

Artificial Intelligence

Artificial Intelligence based chatbots act as friendly assistants with 24/7 support to prospective buyers and customers who come to online platforms with a bunch of questions.

Augmented and Virtual Reality

Augmented and Virtual Reality are cutting edge technological breakthroughs in the real estate sector (traditionally, still a touch-and-feel place because site visits are a must). AR and VR save a lot of time, including dealing with a difficult-to-please customer. A lot of real estate firms in India are offering VR experiences with retina headgear for a virtual tour of properties assisting prospective buyers, visitors and rental leads. Some e-commerce companies have come up with virtual trial rooms using AR tech for an elevated customer experience.

Smart Homes and Internet of Things (IoT)

A lot of modern homes come equipped with smart phone technology of keeping the home safe through verified door answering systems, security cameras which can be remotely controlled via the Internet and energy management which can be monitored.

Process Automation

Online real estate aggregator platforms have a huge uptake when real estate processes are automated using smart technology. This enhances the overall purchase journey to create an ambient vibe about the available options online.

Data Analytics

This is potentially a big disruptor to single-handedly change the consulting industry with its improved use of algorithms and predictive analytics to curate instant matches, property preference, tracking sales, construction progress, compliances and online home festivals to help shortlist offers, discounts and on-the-spot deals.

Social Media

Real estate players in India are picking up the importance and need to stay connected to the customer via social media to build and maintain a brand image. Real estate businesses are waking up to the beauty of digital content that its impact is beyond promotions, hoardings and advertisements. Social media is perhaps the biggest contributor to experiential marketing.

Though it is still early to speculate potential impact, the property tech sector in India has grown exponentially in the last 5 years – it began with online listings, brokerages, co-working spaces and is fast moving to co-living spaces and branded accommodations. PropTech is moving from a built environment and identity to a digital future of new technology in the form of emerging businesses, large-scale operations to simultaneously manage multiple projects in multiple locations, elimination of roadblocks caused by physical distance and alternative solutions.  But, customer demand will always dictate technology adoption.