Technology has transformed almost every industry, including Real Estate. To stay relevant in the Real Estate sector, all stakeholders will have to adopt the latest technologies, using them to drive efficiencies in the lifecycle of a Real Estate project.
Technology is a vital part of the Real Estate Industry as it is continually evolving. In recent times, the need for making more profitable property decisions, reducing inefficiencies and providing better customer experiences has led the industry to turn to technology. It is no wonder that Real Estate Technology investments have been on a rise since 2013. Rapid innovation, fueled by startups, is changing the face of the Real Estate Industry.
The Real Estate (Regulation and Development) Act, 2016 has been passed, which seeks to protect homebuyers as well as help boost investments in the Real Estate Industry. The Act established Real Estate Regulatory Authority(RERA) in each state for regulation of the Real Estate Section.
Technologies That Are Currently Being Used To Improve Efficiency In Construction.
Augmented Reality: AR uses computer-generated images to visualize what the building will look like upon completion. AR allows developers to make changes in the design phase before the construction begins, thereby reducing change orders that result in an increase in cost and timelines.
AR enabled gear allows project managers to collect data related to the plot of land under development, such as the height, depth and width. This allows managers to plan procurement strategies accurately. In some countries, developers have been using AR to gauge the environmental and societal impact that the building will have on the surrounding area.
Building Information Modeling: BIM is a 3D model-based process which give construction professionals an edge in planning, design and construction. Through BIM, architects and engineers collaborate in real time. A modification in a BIM model by one stake holder automatically updates the tasks for all the stakeholders involved. BIM reduces the burden on coordination between multiple stakeholders, minimizing change orders and hence reduces cost and shrinks timelines, making the entire development process more efficient. Further, BIM can be used by owners and facilities management companies for future tracking once the project it complete.
Project Management Software: PMS Software is
used to increase the efficiency, clarity and accountability of all stakeholders working on a project. It also assists real-time communication between stockholders and helps track other operations such as scheduling, costing and payments
3D Printing and Robotics: 3D printing can use multiple materials and colors, dis-solvable materials and subtraction of materials are also possible, thereby reducing labor cost, time and waste. Robotic arms may be used in the construction industry in the future to lay bricks leading to quicker turnaround time with higher precision.
If KPIs are defined, procurement teams are trained, KRAs are set and tools are deployed, significant savings can be unearthed systematically
Virtual Reality: VR allows potential clients to visualize apartment even before the project is completed. VR also allows viewing of the proposed interior, floor plans and exterior design and architecture. Developers can use this to sell projects even before a project is complete. For investors that invest across geographies, investment decisions can be taken without being present at the location.
Property Management Software: Property management software is used to track the performance and downtime of building equipment, provide help desk support services and manage day to day tasks carried out by the maintenance teams. This software monitors the performance of the asset, ultimately making the entire property management process efficient. Some Software also allows property and asset managers to keep track of rent and vacancy cycles.
Chatbots: Marketing and Sales performance can be enhanced via chatbots. Chatbots often serve as the point of interaction with a potential customer. When a customer visits a website, a chatbot interacts and handles the straight forward questions that a customer may have. They assist customers to fill contact forms, aid in getting in touch with a sales agent, and schedule visits when required. They reduce the overhead cost of the sales and marketing team over time and lead to higher conversion rates.
Smart Homes and Offices: Homes and Offices across the world are implementing technologies that are driven by deep learning and artificial intelligence. Smart office and home gadgets provide comfort and improved security while being energy efficient. Lights, security systems, a conditioning systems can all be controlled using a smart phone or tablet. Further, these appliances can be programmed to pick up usage patterns in the home and function automatically, creating a hassle-free experience.
Predictive Analytics: Real estate is s data rich industry. Predictive analytics track consumer behavior to understand the conditions in which clients are most likely to buy.
Technology and Real Estate will become inseparable in the next decade. Efficient adoption of relevant technologies will spell boon or doom for real estate companies in the future. The Real Estate Industry has always evolved according to the needs of the market. As the influence of technology continues to grow, players in the real estate value chain will need to adapt to remain competitive.
Technology platforms will enable smaller residential assets to transact on platforms and make exchanges in reasonable quantity, leading to an exponential growth along with radical changes. Appropriate risk management strategies will have to be adopted by real estate developers and players in order to remain in sync with the changes happening across the real estate spectrum.