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Technology Transformation: A Definite Boon For The Real Estate Industry In India
Accommodation Times  |  May 3, 2019

Asit Biswal

Technology transformation is the talk of the town these days. With constant radical disruption being the new norm in every industry sector, the real estate sector is not behind from its impact. The disruptive technology wave has paved its way into the volatile world of real estate and is now taking care of every aspect and process of the business. As the real estate sector in India passes through a major crisis of lack of potential buyers and dipping demand, technology is helping the industry to recover, especially in the way it has led the real estate consultants to move beyond the traditional ways of prospecting the buyers. With the constant hike in the prices of new and luxury properties pan India in the last few years, less number of buyers were showing interest to buy them thus leading to piling up of unsold properties.

 

Moreover, less liquid cash due to demonetization affected demand for houses adversely. However, as the trend of co-living and managed workspaces are on a serious rise, things for the real estate sector are shaping up. This is where technology has played a pivotal role.

 

Various innovative technologies have made inroads into the real estate sector in India, right from property search to construction and signing of contracts. Online portals with all the details of houses on rent and the new properties available for sale are making it easier for potential buyers and tenants.

 

Matching their own requirements with the facilities of the properties listed on the platform, people can now choose to buy or rent them and contact owners, developers or agents with one click. Here artificial intelligence (AI) is coming in handy to understand and identify customer’s preferences and show options of properties on that basis.

 

Moreover, payments, registration procedures and other documentation between buyer and seller or tenant and landlord too have become easier with digital signature facilities available. This has also reduced the layers of intermediaries in between, making the deal cost effective for both the ends. While technology is benefiting the end consumers to a great extent, it is proving a boon for the developers as well. Through crowdfunding platforms, they are now able to arrange funds for their upcoming projects or to revive the ones stuck midway. Meanwhile, aggressive buyers, who are not in the state to wait for the stuck projects to complete, can arrange for crowdfunding themselves. In this case, co-operatives are formed who later on share the profit by selling up units. Meanwhile, the hospitality sector has also come to the aid and stand support to the real estate sector in this period of crisis, with its own share of technology innovations. On one hand, there is dipping demand lack of potential buyers and piling up of unsold big properties on the residential sphere, on the other, there is a constant demand of houses for buying and renting by the expanding hospitality industry. That surely is adding bright colours on the turbulent state of the real estate market.

 

With new hotels, restaurants and homestays coming up every day, and the existing chains growing manifold, buying or renting of properties have got a boost from the hospitality sector. Also, since affordability is an important issue for millennial students and newly working professionals, the concept of co-living is gradually gaining popularity. This is leading to demand apartments, thereby making hospitality chains enter the sphere, offering co-living homes. And all these combined is surely showing a turn-around possibility for the real estate sector.

 

Moreover, hospitality sector players are tapping on millennials too, to enter the residential space. In metro cities, more millennials are adopting the co-living concept to minimize the cost of living. Students or newly working professionals, who have shifted to a new city, often find it economical to share apartments or houses, as it divides the cost. Hospitality brands have tugged at this opportunity to provide co-living facilities, where a separate room is available for each of the occupants but the kitchen, dining room, living rooms are shared. This too has contributed to buying and renting of properties by these hospitality brands.

 

With the hospitality industry and players, real estate developers leveraging the technologies to the best possible way, things are looking up for the industry. With so much to gain from technological integration, this year could very well kickstart a tech property revolution and shape the future of the real estate industry in India.

 

By Asit Biswal, Vice President, Business Head, OYO Life

 

(The views expressed by the author is his own)