Proptech is said to be a significant part of the digital transformation of the entire real estate industry. It is a wide concept which encompasses both digital as well as the construction side of the real estate industry. The use of proptech in the real estate industry has now become a norm. Proptech, also known as property technology adds value to the business and is being used to get a great advantage both by consumers as well as developers.
These days, Proptech is enhancing the efficiency of every aspect of the real estate business, from research to planning, construction, sales and realization. Maintenance and utility bills can be managed through online software. The adoption of technology is gaining ground in building automation. Artificial intelligence and algorithm-based software automation ensure access to the right market at the right time at a very low cost.
Another wing of Proptech is the recent tech advancements like Augmented reality(AR) and virtual reality(VR) that help consumers examine real estate properties at their convenience from any part of the world. Real estate managers are now shifting towards the usage of big data and blockchain for various stages of client servicing and execution of projects. Machine learning has also proved invaluable in nurturing leads through chatbots, drip marketing and email marketing which has helped builders and customers. Sales teams can identify the right prospects and anticipate their queries leading to higher sales.
Proptech also involves cloud services and apps can be used to access information from any location. The services provided have enabled real estate agents to expand their network of channel partners. Developers can now reach the latter quickly and with detailed project information. The network of channel partners can push the information to a large number of potential buyers.
Here’s one instance. Online distribution strategies democratise material access. Both small-scale suppliers of raw materials and local city builders will benefit from this occurrence. When purchasing supplies, the building industry has historically used the brick-and-mortar approach. E-procurement, however, has been quickly taking the place of this technique thanks to IT. The new procurement softwares give a variety of materials to choose from, reasonable rates, and complete transparency, while also substantially reducing the time spent looking for products or services. All of these advantages have an immediate impact on the price and schedule for finishing real estate projects.
There are startups that have paved the way for adopting proptech and also proved to be a benchmark in the industry. Such companies provide quick tips, expert advice and answers by using the PropIndex Tool which enables investors and buyers to see how residential apartments and properties shift their prices. Another few startups which have gained huge success over the years are where a technological platform is built in which customers can find and buy houses without paying brokerage fees for selling homes without commissions. More examples include startups providing clients with fair pricing and superior technical experience through a centralized platform that identifies clients’ needs.
Although the Proptech has developed and grown over the past few years, the pandemic would have had a considerably greater impact on the real estate market. Due to the pandemic’s rise, new platforms have emerged for customers to seek for possible properties and real estate options that meet their needs. These newly introduced platforms allow investors to track all the steps in the process of property-buying transactions from their homes. It is also clear that PropTech has grown in India because now even though the actual transactions which were done offline are now done online where more than 50 per cent of the decisions relating to buying are made online. From a futuristic point of view, there will be billions of internet users providing companies in this segment with an enormous amount of opportunities. Now, as we see the economy bounce back to normalcy, the demand for the home buyer and seller information constantly hits the charts, and the communication gap between startups and real estate players is gradually decreasing. Some of the ways to increase customer experience are Data automation and artificial intelligence, property data digitization and big data, construction and maintenance using sustainable technology and automated customer service using chatbots.
With all these developments, it is fair to say that Proptech is transforming the real sector for the better. Consumers already use Proptech substantially. Its adoption by real estate developers, brokers and channel partners is now on an ascending curve. The industry is already by leaps and bounds by taking customer experience to a whole new level.
(The article is authored by Mr. Navin Dhanuka, MD & CEO, ArisUnitern RE Solutions and the views expressed in this article are his own)
