Investment in the Indian real estate sector is on rise. The growing interest in the sector is further propelled by tech innovations, popularly known as PropTech. As the sector continues to mature and alternate investment funds gain traction, PropTech is a viable tool to create a favourable ecosystem and have transparency and help in decision-making.
Here are some key takeaways about how PropTech is revolutionising real estate Alternative Investment Funds (AIFs) in India.
Effective investment decisions
When it comes to investing in the real estate industry through avenues like AIFs, data plays an important role in taking informed decisions. With the help of PropTech platforms, investors can not only assess the potential of a real estate asset, but also get an exposure to valuable market trends, transactions, performance history, and demographic details. With the advancement of technology and emergence of artificial intelligence, and machine learning, PropTech is becoming more intuitive, offering more data-driven and real-time insights to investors.
Transparency and visibility of transactions
As AIFs are becoming popular, investors are looking for robust platforms through which they can do transactions in the fairest way. With PropTech, AIF platforms have become more investor friendly. This tech enablement of AIFs is offering standardized and reliable data to investors, making the process transparent. As a result, investors’ trust towards real estate AIFs is increasing, thus creating more opportunities for the real estate sector.
Due diligence
Real estate investments involve big transactions and to facilitate this effectively a lot of due diligence is required. Besides, with proper due diligence in place, investors can mitigate the risks associated with a sizeable transaction. Through PropTech tools, AIFs streamline their due diligence process and give access to relevant data, historical analytics, and historical insights of transactions. This is time saving and empowers an investor to select an asset class and lock the transaction.
Remote transactions and enhanced geographical presence
Digital imperatives and IoT have disrupted the real estate investment ecosystem by making the sector more accessible to global investors. PropTech has unlocked the door of opportunities for global investors. As investment interest continues to increase, PropTech platforms are making the game interesting by offering virtual property viewings, walkthroughs, and document signing. This makes the process of investment in real estate hassle-free and provides vivid visibility to investors.
Use of intuitive tech for an enhanced experience
When it comes to investment decisions, the use of intuitive tech like AI is revolutionizing the way investment decisions are taken. PropTech platforms are using AI algorithms to predict market trends, and enabling investors to make data-driven decisions, and mitigate risks associated with real estate investments. Whether it is about property values, rentals, and demographic trends, investors are in a better position to take strategic decisions, thus leveraging AIFs to allocate funds.
Use of virtual reality for property showcase
After the Covid pandemic, Virtual Reality (VR) has been a popular choice for many industries and the real estate sector. From an investment point of view, VR has transformed the way real estate AIFs used to showcase properties to potential investors. Within the realm of PropTech, VR has been adopted to employ immersive experience in terms of giving virtual tours of properties, thus transcending the barriers of time and space. This has not only saved time but also opened investment opportunities to a large audience across diverse geographical locations.
Conclusion
PropTech is unlocking a new realm of efficiency and transparency in the real estate investment ecosystem, especially AIFs. Leveraging data-driven decision-making, transparency, virtual tours, and other technological imperatives, real estate investments through AIFs are becoming more value-driven and prospective. PropTech is likely to reshape the future of real estate AIFs in India and will accelerate more investment inflows. With India’s resilient economy, digital advancement and global footing, the market share of PropTech will gain further momentum in future.
(The author is managing director and chief executive officer, ArisUnitern RE Solutions)
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