Buying real estate (RE) holds a significant place in Indian culture as a major aspiration. However, the sector has traditionally been perceived as complex, especially for millennials, who often find its processes and nomenclature daunting. Many advocates for simplification, drawing parallels to the streamlined systems of identification and healthcare like Aadhar and health IDs. They envision a straightforward property identification system, akin to an exchange facilitated by the registration department, where sellers list properties using a unique property ID and buyers can make purchases online, including handling stamp duty. This aspiration reflects the ‘Art of Possible,’ leveraging technology to make real estate accessible to everyone, especially in the era of advancing AI.
Industry experts reveal numerous challenges that must be addressed. Among these are the necessity for physical property viewings—rooted in the belief that “seeing is believing”—prior to such high-value transactions. Yet, advancements in technology, such as virtual tours utilizing tools like Google Street View, virtual reality (VR), and augmented reality (AR), can facilitate the discovery phase, offering alternatives to physical visits.
Additionally, concerns regarding due diligence arise, despite many states digitizing land records and registration processes over the past two decades. While some states provide online access to information like a property’s encumbrance (ownership history) and circle rates, others, like Delhi, lag behind. Opening up Application Programming Interfaces (APIs) of state registration portals could democratize access to such information, boosting confidence in the real estate industry.
Moreover, the diversity in standards across states poses a challenge. Land measurement units and processes vary significantly from one state to another, complicating transactions. Standardization efforts leveraging technology are crucial to addressing this issue and streamlining processes.
Amidst these challenges, clearly technology continues to revolutionize the real estate sector in India, driving growth and transformation. Let us look at some key technologies that are playing an important role in driving this growth and transformation.
Key Technologies Driving the Real Estate Sector
Proptech Revolutionizes Real Estate Property Search
Proptech has revolutionized property search, employing data analytics for predictive and personalized solutions. Virtual property tours, 3D modeling, and interactive maps provide immersive experiences, empowering potential buyers with informed decisions from remote exploration. According to research by Deloitte, Proptech investment reached $23.8 billion globally in 2020, highlighting its growing significance in the real estate market.
Blockchain for Secure Transactions
Blockchain technology ensures transparency and security in real estate transactions, with immutable records of ownership, contracts, and payments. Smart contracts automate agreements, expediting transactions and reducing costs by eliminating intermediaries. A report by MarketsandMarkets estimates that the global blockchain market size in real estate is projected to grow from $101 million in 2018 to $3,118 million by 2023, showcasing its increasing adoption and impact.
AI and Machine Learning
Artificial Intelligence and machine learning have transformed various real estate processes, from personalized customer experiences to predictive analytics. AI-powered applications enhance property searches, predict rent rate fluctuations, and streamline interactions through chatbots, optimizing efficiency and user satisfaction. According to Grand View Research, the global AI in real estate market size is expected to reach $9.88 billion by 2027, driven by the demand for automated valuation models and virtual assistants.
Big Data and Predictive Analytics
Big data and predictive analytics facilitate real-time market analysis, enabling accurate valuations, pricing strategies, and investment decisions. These insights empower stakeholders to anticipate market trends and mitigate risks effectively. The adoption of predictive analytics in real estate is projected to grow at a CAGR of 23.8% from 2020 to 2027, according to a report by Allied Market Research.
Internet of Things (IoT)
IoT technology enables ‘smart properties,’ integrating physical and virtual environments for enhanced comfort and efficiency. Smart sensors enable predictive maintenance, increase energy efficiency, and provide valuable insights for property management. The global IoT in real estate market size is projected to reach $19.9 billion by 2027, registering a CAGR of 22.1% from 2020 to 2027, according to Grand View Research, Inc.
AR and VR in Property Visualization
Augmented Reality (AR) and Virtual Reality (VR) technologies offer immersive property visualization experiences, allowing users to explore properties and visualize renovations remotely. These technologies eliminate geographical constraints and provide comprehensive insights for informed decision-making. The global AR and VR in real estate market size is projected to reach $4.9 billion by 2026, growing at a CAGR of 63.5% from 2019 to 2026, as reported by Allied Market Research.
Sustainable Construction and Smart Homes
Sustainability and smart technologies are increasingly integrated into real estate development, with eco-friendly materials and energy-efficient designs addressing environmental concerns. Smart home systems enhance convenience, efficiency, and security within residential spaces, catering to evolving consumer preferences. The global smart home market size is expected to reach $135.3 billion by 2025, growing at a CAGR of 11.6% from 2020 to 2025, according to a report by Grand View Research, Inc.
Mobile Apps
Mobile applications revolutionize property transactions, offering convenience and accessibility for buyers and sellers. From property browsing to auctioning distressed properties, these platforms leverage advanced algorithms and technology to streamline processes and ensure transparency in transactions. The adoption of mobile apps in real estate is driven by the increasing smartphone penetration and demand for on-the-go solutions.
To Conclude
Technology is transforming India’s real estate sector. With advancements like Proptech and Blockchain, property searches and transactions are becoming more efficient and secure. The inclusion of auctioning distressed properties further enhances transparency in the market. Embracing these innovations is essential for realizing the sector’s full potential and ensuring a prosperous future for India’s real estate industry.
