Indian Real Estate Market is comprised of all kinds of properties. It can be an apartment or a villa to be your dream home, a nice shop at the corner or a commercial space in a mall; a nice office space in neighborhood to start your startup or a huge commercial space to expand your business; a piece of land making your dream home or water body for some other purpose, name it and the market will have it for you.
Whatever your requirements are, all kinds of properties are commercially available in Indian real estate market for buying or selling.
India as a country is home to over 1.25 billion people and for such a big population; housing is a primary need like the need of food, water and healthcare. Be it poor, a middle class or a billionaire, real estate is part of everybody life. All aspire to have a piece of land or a property to call their home.
The property market in India has always been working effectively and efficiently creating, developing and marketing properties to meet housing needs of many. No wonder it’s a huge market.
If we look back, we would be able to see, how real estate market in India has evolved. A decade back, Indian real estate market was only a thing for real estate developers and investors, but now, it has reached to the common man. With technologies like the Internet, Social Media, Mass Media, Automation, Internet of Things (IoT), Virtual Realty etc. the market has offered plenty of opportunities for everyone to capitalize on. Apartments used to be a scarce 15 years back and now we can see them everywhere in form of condominiums, studios, skyscrapers etc.
Despite the recent slowdown in the market, real estate investments have shown great capabilities in making money as well as being a stable form of investment. Real estate investments such as buying land, buying and renting out apartments, houses and office spaces are widespread and very common these days.
Land prices only going up and the FAR increasing; there is a good business opportunity available in Indian real estate market. Developing properties to house a large number of people in a relatively small area is the key opportunity in this market and developers are looking at building more vertical rather than horizontal.
With rapidly changing technology and penetration in real estate industry, Indian real estate market has huge potential for a great transformation; the transformation which may redefine the ways of doing business in Indian property market.
Ease of Information with digital platforms like websites and social media:
80% of prospective buyers search for homes online first. With the rapid growth of real estate related web platforms, social networks and other real estate related platforms, and with continuous creation of data and ease of accessing these platforms, it has become very convenient to request and gather information related to the Indian property market.
One can easily get real-time information about the availability of houses in a certain locality, plots or flats in a newly developing area, land value in another part of country or condition of existing properties over there.
With such information in hand, one has real opportunity to capitalize on and expending his/her business.
Sensex for Real Estate is not far off :
Investment opportunities in the real estate market are increasing with everyday passing by. Right from buying land to building residential or commercial structures, buying or selling of properties or just holding on to them to rent out; every stakeholder, from individual to broker and from investor to the developer has been able to capitalize on the opportunities in the property market.
With the growing demand for more land area coupled with the increasing land prices and increasing FAR indicates that Indian real estate market will be witnessing a tremendous growth and investment opportunities. This would mean that trading, buying, selling, renting and other transactions would become more streamlined and faster and companies would market websites, applications and hire professionals to help assist in this process. With such a huge number of transactions, a common platform might be needed to conduct these transactions. Who knows, we might have Sensex for real estate too.
Automation of Information in Indian Real Estate Market:
Be it web portals or mobile applications; digital marketing has been a primary medium of real estate marketing since last few years. Though, the information is still scattered in bits and pieced over multiple online channels.
It has become mandatory for real estate developers to notify RERA websites about all residential projects related information and related updates. With a couple of more information like real-time sales of units in a particular project, localities with maximum demand, upcoming public amenities and development status etc. it can be very helpful to close deals faster.
The opportunity here is in use of data automation by using machine learning techniques. With data automation, all required data mentioned above can be fetched from relevant sources and can be made available in one place, generating informed marketing tools and helping speedy customer acquisitions.
Use of Artificial Intelligence:
Artificial intelligence or AI can be another important tool, which if clubbed with Automation of Information, can yield great results. With the efficient and effective use of AI under the hood, the data collected can be used in more meaningful ways. It can be used to generate relevant trends which can be used as marketing tools or can be used to predict the changing curves of demand and supply in specific projects/localities in real estate market.
No need to tell, with such information in hand, marketing activities could be tailored to needs yielding better results.
Indian Real Estate Market and Smart Legal System:
So many foreseen changes are awaited to happen in Indian property market. No doubt, with these many changes laws applicable to the real estate market will need to be changed/updated too.
With RERA in action and single window clearance system awaited, the regulations are changing slowly and becoming digital. Real estate transactions are happening online now and so does the legal consultations. With 96% of people seeking legal advice use a search engine. (Google Consumer Survey, Nov 2013), we can anticipate that future of legal services related to real estate is going to be digital too.
But this doesn’t mean that real estate law professionals will be out of business. Actually, with so many foreseen changes waiting to occur in Indian real estate market, there will be a need to change the laws applicable to real estate market of India too. This means the need for professional legal aid is only expected to rise.
Need of Real Estate Agents Comparison Tools:
With time becoming a scarce factor and physical home search turning to be more like home e-search, home buyers may look forward to having a tool which can compare the brokers or real estate agents involved in dealing with the desired property. It would be needed to help home buyers with the selection, convenience and transparency in the deal.
Major real estate portals in India have already started comparing properties and planning to launch property agents comparison tools to their platforms too.
Digitizing Assets Data and Documentation:
With the introduction of AI, the digitization of data has become lesser cost and labour intensive. In the present scenario, most of the property related data is in form of physical documents in the offices of real estate developers or brokers, for eg. construction plans, project marketing plans, brochures, legal documents, contracts, sale deeds and other property documents. Also, they are not standardized, making it hard to compare one versus another.
With all gradually migrating to digital format, will help all stakeholders to access the respective documents and information seamlessly simplifying the processes involved.
Use of Drones to Enhance Customer Experience:
Drones are very helpful in creating virtual property tours and some organizations in America and Europe are also offering live virtual property tour too. With the involvement of Drones in Indian Real Estate Market, buyers would be able to take live tours of desired properties without putting extra time in visiting the project location physically and narrowing down the final list.
Such features will also help online real estate portals to serve information with better details and generate more leads.
Virtual reality will soon help Indian real estate buyers to get the real-time experience of living in their yet-to-be-constructed homes. People would be able to see the 3D diagrams of property with layered information including the material used, dimensions, design, architect, layouts etc. and be able to assess its value through online services. This can help property buyers shortlist properties before making the final choice. For now, it’s an expensive technology, it is currently being used only in high-end property marketing—mostly in marketing luxury housing options to NRIs. Though we can expect that in near future we would be able to shop for our new home from our current one.
Internet of Things ( IoT) in Indian Real Estate Market:
We are already witnessing home automation and smart gadgets for our home. With IoT in the picture, we can expect the same at very large scale. With technologies involved getting cheaper, we can expect to manage even the tiny requirements with just a few taps. IoT will be very helpful in improving facilities management services too.
We can expect to live in smart cities with digital technology embedded in all city functions making life easier.
Block Chain Technology:
Blockchain technology in real estate is an evolving concept. Block Chain is a shared and continuously reconciled database, which is hosted by millions of computers. The data in blockchain is accessible to anyone on the Internet yet the same time ensures a perfect balance between privacy and transparency.
In near future, we can expect Blockchain technology to play a vital role in storing real estate transactions related information.
For example, there will be Smart Contracts, which make the execution of real estate transactions much more efficient.
Technology to Reduce Construction Time Line:
Technology is a great enabler that is today helping to reduce the construction timelines, cost of construction & optimise land competence. Pre-cast construction methods such as Alu-form and Waffle Crete technology and new construction materials such as Autoclaved Aerated Lightweight Concrete Blocks fly ash bricks and building blocks made of mud that has been stabilized with cement or lime are alternative technological advancements.
Effect of all these changes on intermediaries of the real estate market in India:
The real estate market of India and world have many stakeholders including realtors, insurers, developers, builders and other professionals providing buying, selling, leasing and renting services.
With all the forthcoming changes mentioned above, the real estate professionals will have to undergo a change in their mode of operation to still be able to provide efficient services.
Yes, many of us think that with such technologies, why there would be a need of intermediaries anyway. Though, it would be difficult to conduct business without them especially with the aspect of a lack of human to human interaction. Trusting a computer program over a true experienced professional, I understand we have a long way to go.
Alok Upadhayay for IndianRealEstateMarket.com