Proptech solutions and technological advancements in real estate

Proptech solutions have significantly transformed the real estate sector in recent years through cutting-edge technologies, such as artificial intelligence (AI), virtual reality (VR) and blockchain, and revolutionized the way properties are designed, built, researched, bought and sold.

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The emergence of proptech

The emergence of proptech in real estate has simplified large-scale complex operations, enhanced transparency, made transaction management efficient and improved data accessibility. This has ushered in a new era of professionalism and streamlined processes, paving the way for growth.

Far-reaching impact

Proptech has had a far-reaching impact on all aspects of the sector, including construction, administration, procurement and customer relations. The growing acceptance of technology has especially been observed amongst customers, with a staggering 95% of homebuyers initiating their property search online and over 50% completing their purchase digitally. The proptech sector itself has experienced a noteworthy expansion, rising from a handful of start-ups in 2016 to over 1400 in 2022, marking a remarkable growth trajectory. As the scope of technology-enabled capabilities widens, the proptech market in India is estimated to be worth USD 1 trillion by 2030.

Enhancing stakeholders’ performance

Proptech is a key driver in enhancing stakeholders’ performance, from homebuyers and real estate developers to project financiers. Through advanced technology, the sector is streamlining its operations with greater effectiveness and transparency, leading to improved planning and monitoring capabilities. With India positioned to become the third-largest global construction market by 2025, proptech is set to drive the sector’s growth for years to come.

Proptech for residential and commercial properties

Proptech is divided into two categories – residential and commercial. Residential proptech entails a wide range of digital products to streamline the homebuying and renting process. These include AI-powered property search platforms, sales and financing tools, mortgage lender software and IoT-powered property management tools.

Commercial proptech is utilised by companies to manage office, industrial and retail property assets. These tools include a variety of platforms, ranging from property search engines to construction planning and project management tools. Additionally, proptech tools include evaluation and financing platforms, which aid transaction underwriting and debt financing. Other noteworthy tools include IoT-powered property management tools and asset utilisation tools, such as those used in co-working space management.

The essence of big data analysis

Big data analysis is an important pillar of proptech. Stakeholders are increasingly relying on the use of big data to gain insights into a property’s future risks and opportunities. Proptech-driven companies are leveraging big data to forecast property prices with greater precision while improving marketing strategies by redefining target audiences and securing better offers. Additionally, data analytics tools support investors in making informed decisions by facilitating project risk analysis. The convergence of big data and real estate is revolutionizing traditional practices, offering new and innovative property management and investment approaches.

Sustainable construction practices

The adoption of sustainable construction practices and green buildings represents a massive opportunity for the real estate sector. Green buildings are meticulously designed, constructed and maintained while exemplifying the principles of sustainability and resource efficiency. Proptech is spearheading the growth of sustainable construction practices and design methodologies. Real estate developers are leveraging drone footage of construction sites and state-of-the-art design methodologies to construct efficient buildings with minimal environmental impact. Using building information modelling and energy modelling tools, construction firms can optimise a building’s architecture and layout to integrate sustainability and design, thereby, maximising resident welfare and resource allocation.

The future role of proptech in real estate

The next phase of India’s urban planning and infrastructure initiatives is the development of fully integrated smart cities where proptech would play a pivotal role. Smart cities are fundamentally characterised by seamless device connectivity, big data analytics and efficient feedback loops. The Smart Cities Mission represents a bold and ambitious urban renewal and retrofitting program by the Government of India to transform 100 cities. Given India’s vast population and fragmented social infrastructure, the country faces unique challenges that demand innovative technological solutions in housing, transportation and utilities. With the ubiquitous adoption of internet connectivity in Tier 2 and 3 cities, proptech has enormous potential to unlock real estate opportunities in both urban and rural areas.

(The author is Director, Aparna Constructions and Estates Pvt Ltd.)

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