Startups - The Construction and Real Estate Industries

Presently we are being served everything at our doorsteps, all thanks to all the start-ups that have made it possible. But are you at all aware that some great start-ups provide you even with construction or real estate services at your fingertips? Yes. Start-ups have emerged and are now the talk of the town. They are set out to transform the industry; their prime focus being to bring the industry closer to a more sustainable, productive and technological milieu.

The construction industry has continued functioning the way it has for the past few decades, with a huge dependency on manual labour, obsolete technology and age-old business models. Productivity has greatly come to a standstill, hence. However, digital technologies are steadily making their foray into the construction industry, altering how infrastructure, real estate etc. were traditionally functioning.

Contrary to the shift in the technological world, there are several worldwide trends too that drive players in the construction industry to reconsider archaic practices. However, few still want to stick to the former. The main reasons behind this sceptical approach are summarized as follows:

·      Many feels that the deployment of new tools can be challenging.

·      The return in productivity until now is meagre.

·      A costly investment needs to be made as far as the purchase of tools and equipment is concerned.

·      A handful of companies seem to be digitally immature and hence not willing with an expansion on this type.

Acceptance of digitization in our country still has a long way to go. However, with the entry of some new age and promising investors and builders, there is a strong possibility of these technological changes being incorporated into the construction industry. The blend of advanced technology and innovative hardware will surely bring about a favourable impact which will make ‘construction’ an industry to reckon with. With these players, the new-age technologies are foraying into the Building Information Modelling (BIM), prefabrication, green building, wireless sensors, automated and robotic equipment and 3D printing. The aftermath of the construction world on our economy and society is crucial as this industry accounts for almost 6% of the global GDP and employs around 100 million people worldwide. Global construction is predicted to achieve a total value of $10 trillion by 2022. This testifies to the great potential that the sector has. Therefore, it is evident that construction technology start-ups are lately investing heavily in the industry.

However, the lack of digitalization isn’t the only factor that has led to this noteworthy change in the field of construction and real estate. Rapid urbanization, frequent change in climate and a growing talent gap are a few of the other factors that are propelling contenders to indulge in the paradigm shift. The sector is presently crushed with the following too:

?         Decline in productivity rate

?         Increase in material cost

?         Resource rivalry

?         Increase in labour wage

Regardless of the challenges stated above, the increase in construction technology investment has aroused hope. Technology has emerged as a boon in all walks of human life and obstacles can be overcome through technology and well-targeted investments. The experts however acknowledge the fact, that the strongest influence on the adoption of technology in the construction industry is the fact that people are using it in their personal lives, and they want to use it at work as well.

The chart below gives the reader an idea of the various ways in which start-ups are cementing their presence in the Contech field:

Contech start-ups thus as noted hold an immense possibility as their contribution can come in innumerable ways; the main three being:

? Collaboration Software

? Offsite construction

? Big Data and AI

Real estate start-ups on their part are also diving into the current surge in technological developments to bring in a digital shift to the property industry. The industry is roping in technologies like Blockchain, AI, Robotic Process Automation, and so on. For the reduction in carbon emissions, constructors are pressed by regulations to invest in recycling processes.

 Implementing technological advancements, these industry start-ups are redefining the entire functional curve. Some start-ups are even on the lookout for substituting manpower with technology which is appearing more ‘profitable’ to them.

Therefore, it can well be said that with the aid of smart and powerful investments, both construction and real estate start-ups have a unique opportunity to change the future of the sector. However, the workforce needs to organize tactically to flourish amid the disturbances and commotion, the new technologies and trends could trigger. The policymakers of the industry must understand the demerits associated with the shift and thus plan a substantial way forward in promoting economic growth, social advancement and environmental obligations.