How Technology will Transform India’s Real Estate Market Future?
India’s real estate market is on the cusp of a transformative journey, fuelled by the rapid integration of technology trends. From digital marketing and big data analytics to sustainable practices and smart cities, technology is reshaping the way properties are marketed, bought, and managed. This tech-driven revolution promises to unlock new opportunities, enhance customer experiences, and promote sustainable development in the sector. A myriad of tech trends is positioned to shape the future landscape of India’s real estate market that is projected to reach a staggering one trillion USD by the year 2030.
Digital Marketing and Sales
One prominent aspect of this digital shift is the rapid rise of digital marketing in the Indian real estate industry. Online channels like real estate portals and search engines are estimated to account for over 20% of a real estate developer’s business, a share expected to grow further in the coming years. Indian homebuyers have undoubtedly embraced this trend, increasingly relying on online research before committing to a purchase, a trend further fuelled by the pandemic’s impact. Today, as per reports, approximately 30% of a builder’s advertising revenue is being allocated to online marketing.
Virtual tours are becoming prevalent for property listings, enabling potential buyers to explore properties from the comfort of their homes. Social media and targeted digital advertising have proven to be influential in reaching the right audience and impacting property sales positively. Additionally, AI-driven chatbots and virtual assistants are engaging with potential buyers, providing instant responses and personalised recommendations.
Rise of New Technologies
The transformation doesn’t stop at marketing alone; it extends to every step of the property development lifecycle. With the advent of Big Data and Analytics, developers and stakeholders now have a powerful tool at their disposal. They can leverage vast amounts of data to accurately predict property demand, analyse market trends, and make well-informed decisions. By delving deep into customer preferences and behaviours, developers can optimise property design and pricing, ensuring higher levels of buyer satisfaction. Personalised property recommendations based on customer profiling are becoming increasingly prevalent, streamlining the purchasing process and catering to the individual needs of buyers.
The rise of proptech startups is another instrumental aspect of this digital landscape. As property prices soar and affordability becomes a major concern, proptech companies have stepped in to address these challenges with innovative solutions. Fractional ownership and management technologies are revolutionising the concept of property ownership, making it more accessible and affordable to a broader audience.
Additionally, the implementation of smart home automation and IoT devices is enhancing property management while prioritising energy efficiency, a crucial factor for the eco-conscious buyers of today.
Blockchain technology, renowned for its ability to ensure transparency and security, is making its mark in real estate transactions. By recording property deals in a tamper-proof and decentralised manner, the technology minimises fraud risks and reduces the cumbersome paperwork involved in traditional transactions. Tokenisation capabilities offered by blockchain also pave the way for fractional ownership, democratising real estate investment opportunities and allowing more individuals to diversify their portfolios with ease.
The world of real estate buying is also experiencing a transformative shift with the advent of Augmented and Virtual Reality (AR/VR) technologies. Gone are the days of merely relying on images and floor plans, potential buyers can now immerse themselves in virtual property tours, gaining a realistic sense of space and design. With the aid of virtual staging and interior design visualisation, properties are showcased in their best light, making them even more appealing to potential buyers. AR technology takes it a step further, empowering buyers with real-time, location-based information, aiding them in making well-informed decisions about the neighbourhood they might call home.
Green Building Practices and Smart Cities
With an increasing global focus on environmental consciousness, the demand for sustainable and green properties is soaring in the Indian real estate market. Technology is undoubtedly a key enabler in this pursuit, empowering the industry to adopt eco-friendly practices and build a more sustainable future. Green building technologies are at the forefront of this movement, not only reducing a property’s carbon footprint but also delivering cost savings for property owners. As the interest in environmentally-friendly properties rises, certification standards like LEED and GRIHA are becoming critical benchmarks for eco-conscious buyers in their search for sustainable living spaces.
The transformative impact of technology is not limited to individual properties but extends to the grand vision of smart cities and urban planning. Government initiatives are actively encouraging the development of smart cities, integrated with advanced technology. These futuristic urban hubs present compelling investment opportunities and have proven to boost property values in their respective regions. A seamless blend of technology, transportation advancements, and improved connectivity within smart city locations further fuels the demand for properties in these areas.
Remote Work and Co-living Spaces
As remote work gains traction, facilitated by advancements in communication and collaboration technologies, the real estate market is experiencing a notable transformation to meet the evolving needs of remote professionals. This shift towards remote work has, in turn, influenced property preferences and location choices. More individuals are seeking properties that can accommodate their remote work requirements. The demand for dedicated home offices or multifunctional spaces that can double as workspaces has surged. Property developers are adapting to these changing demands, incorporating remote work-friendly designs into their projects to cater to this growing segment of the market.
This shift towards remote work has, in turn, influenced property preferences and location choices. More individuals are seeking properties that can accommodate their remote work requirements. The demand for dedicated home offices or multifunctional spaces that can double as workspaces has surged. Property developers are adapting to these changing demands, incorporating remote work-friendly designs into their projects to cater to this growing segment of the market.
As technology continues to evolve, India’s real estate market is on the brink of an exciting transformation. Embracing these technology trends will not only streamline processes and enhance customer experiences but also drive sustainable development in the sector. Industry stakeholders must proactively adopt these advancements to stay relevant and thrive in the future real estate landscape. By leveraging technology, India’s real estate market can usher in a new era of innovation, efficiency, and accessibility for both developers and buyers alike.
By: Saurabh Vohara, CEO and Founder, ALYF