Technology today is influencing every part of our lives – from how we carry out our daily activities to how we conduct our business – virtually or in the physical world and even how we develop real estate projects. This assumes significance to accelerate the pace of construction, contain project cost and timeline escalations while reducing wastage of materials among others.
From adopting Building Information Modelling (BIM) and project management software to streamline processes, reduce costs, and enhance collaboration during the construction phase, to utilizing virtual and augmented reality during pre-sales, and integrating the Internet of Things (IoT) in the post-handover stage to seamlessly manage amenities at the project site, these technologies significantly enhance convenience for occupiers and homebuyers.
According to a report by Mordor Intelligence, the value of India’s real estate industry is projected to soar to $828.75 billion by 2028 from $265.2 billion in 2023, growing at a CAGR of 25.6%. This growth also comes on the back of technological advancements.
Streamlining The Realty Value Chain
Technology is encompassing across the value chain of real estate – from design to construction and sales to property management after handover, bringing greater convenience and trust for homebuyers and commercial real estate occupiers. Today, developers can use technologies such as 3D modelling, augmented and virtual reality to better visualise the proposed projects to understand their finer nuances, and the challenges associated with it along with building trust with relevant stakeholders. Here, Building Information Modelling (BIM) is a key process that uses digital representations of buildings and other physical assets to support the design, construction, and operations of the project. Once the project design has been finalised, a host of construction technologies are being utilised to accelerate the pace of construction while ensuring high standards of quality.
Technologies such as Mivan Shuttering, which is an innovative construction technique that utilises aluminium structures to create a cast for erecting a concrete wall that allows for the swift completion of projects while ensuring its robust strength are fast becoming a common approach. Soon, these technologies will become even more integral as the demand for real estate increases across the spectrum, thereby contributing to national growth.
Significantly disrupting the real estate sales channels are prop-tech companies which offer virtual platforms for both institutional and retail investors, enabling them to sift through a selection of country wide properties with insights in great detail. This helps them make an informed decision of purchase or investment, thereby opening up the market to a wider customer base.
Here, virtual reality is truly transforming the experience of proposed buyers who can get a firsthand experience of the property in all its glory even before making a purchase. Developed using AI-powered applications, these platforms predict rent rate fluctuations, showcase the most relevant results and streamline interactions through chatbots, thereby enhancing user satisfaction. Studies by Grand View Research suggest that 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.
Having ensured the completion of the project with precision using technology, there is an increasing use of technologies enabled by the Internet of Things (IoT) to seamlessly integrate physical and virtual environments for enhanced comfort and efficiency. From using smart sensors to enable predictive maintenance of systems, enhance energy efficiency, reduce leakages in power usage, while providing valuable insights for property management. Its widespread adoption is fuelling the growth of IoT in real estate whose market size is projected to reach $19.9 billion by 2027, registering a compounded annual growth rate (CAGR) of 22.1% from 2020 to 2027, according to Grand View Research.
As we look forward to the next decade of Indian real estate and the country’s journey towards becoming a $1 trillion digital economy by 2030, the real estate sector will be one of the biggest beneficiaries of technological developments and contribute significantly to nation-building. This will also give a fillip to the sector in cities beyond the top metros and create a shared value for homebuyers, commercial real estate occupiers, retail and institutional investors among others.
