Technology and Innovation: The Changing Phase of The Real Estate Sector in India

The real estate sector is one of the most recognized sectors in India and around the world. After the pandemic, it was predicted that the sector will incur huge losses but in reality, it bounced back within months and sales reached pre-covid level within the first phase of the unlock. A recent report by IBEF suggests that the real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% to the country’s GDP by 2025. According to the data released by the Department for Promotion of Industry and Internal Trade Policy (DPIIT), it is the second-largest employment-generating industry after agriculture and the third largest in terms of FDI flow in India. The rise in demand and investment is a result of a lot of factors combined including encouraging government policies (both from the demand and supply side), interest rates, change in customer behaviour, etc.

Even in the pre-Covid era, there was a considerable demand for real estate but the global pandemic brought it to the fore, and also enhanced its importance. People now realize how good a difference investing in real estate can make. In a country, where owning a home is a proud sentimental emotion, it not only proves to be a relatively sound financial asset but also provides freedom from the rental trap especially to India’s growing millennium population who now more than ever is looking to buy homes.

The factor that is fuelling this demand even further and is truly starting a new phase for the real estate market in India, is the advancement in technology. For any business to flourish today, the adoption and advancement of technology are important, and the real estate sector is no different in this regard. Technology not only improves the efficiency of real estate companies in terms of speed and operations while also giving them a competitive edge, but it also helps real estate professionals ensure more accuracy and reliability and hence make informed decisions faster. But what we thought was the future is far nearer to the present than we initially thought it to be. Today along with affordability, people look for the quality of lifestyle facilities offered within the four walls which are now determined by thoughtful and high-grade efficient services for personal mobility, maintenance, and routine management.

Backed by the new normal, emergence of middle class and millennials and government support, real estate technologies are predicted to thrive in India. With firms resorting positively to the transformation, the expansion of various disruptive technologies including Virtual Reality (VR), Internet of Things (IoT), AI, 3D printing, drones and blockchain will be observed in urban planning and real estate sectors.

Services-led technological innovation and development include the enhanced use of digital brokerages for property searches. Incorporating chatbots in the websites allow businesses to optimize time intervals spent on answering questions and save on customer service expenses. Developers are also adopting advanced construction technology methods that save time and cost by using AI and VR. From construction to maintenance, AI is being used in every stage of the process. Improving the construction process, lead generation, marketing, property valuation and especially in enhancing customer experience by improving the quality of services offered, the power of AI really is disruptive. One such area where AI-based analytics is used to enhance customer experience and the quality of services offered is Preventive Maintenance. Preventive Maintenance or otherwise called Proactive Maintenance uses AI to identify potential issues in a building’s equipment such as elevators and escalators before they cause problems. Services like this not only increase the value of the building and prolongs the life of the equipment but also improves safety and transparency. With KONE 24/7 Connected Services, we do exactly that and help take people flow to a whole new level. As the world opens up with precaution, VR is here to make things simpler. By offering a complete immersion experience, VR is being used to give virtual tours and help in virtual staging hence saving both time and expenses of potential buyers and developers. In addition to that, IoT is a game-changer as well. It is being used to develop and operate smart buildings and also in preventing potential problems during project construction and operation. With its ability to build technologies that strive for smart solutions, it is an excellent tool to increase our focus on building tools for sustainability and well-being. Robotics is also being used for repetitive mechanical work like bricklaying. Due to this, labour costs are being reduced and quality and precision are being drastically improved.

Product-led technological innovation includes drones which are set to experience exponential growth because of their cost-effective, quicker and safer nature. From agents using it for site walkthroughs, planners using it surveys, site managers using it for employee safety, drones will be increasingly used by all stakeholders involved in the real estate sector. It is needless to say that through its ability to be used as a tool for data capturing, processing and monitoring, drones will add value to a project throughout its lifecycle. It’s indeed as a breakthrough in the Indian construction industry.

Furthermore, 3D printing is another innovation that is going to change the way real estate is designed. Although it is at a nascent stage and is yet to kick start in India, it will potentially help builders reach the previously inaccessible dense areas of urban centres and will replace a large amount of construction across residential, industrial and even retail. its innate ability to reduce waste, labour cost, and time of construction will be very beneficial in developing buildings of tomorrow.

Be it smart city projects that also include intermodal transportation systems, airports, updated railway stations, or commercial buildings, the incorporation of these technologies with all their innovativeness are going to change the way buildings are made, cities are organized, and how we live our daily lives. While the housing sector is currently relatively slow in adopting technology, commercial sectors including workplaces are evolving and experiencing increased adoption of these technologies. Moving forward, technology is going to make everyday living easier for us.

From the enhanced flow of mobility in workplaces to emerging health and safety trends in real estate infrastructure, India is witnessing innovation that is going to change the phase of the real estate industry for good.

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