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How digital technology is lending its midas touch to residential real estate in India

How digital technology is lending its midas touch to residential real estate in India

by Sachin Joshi, Co-Founder & CTO, Alt DRX

When we talk about real estate, probably the first though that strikes the mind is legal redtape and heaps of paperwork. Yes, that’s how real estate sector has been defined for decades. However, there has lately been a radical shift in the way real estate functions and is perceived. Increased penetration of digital services, helmed by the Government of India under its ‘Digital India’ vision, has heralded a new era for countless sectors. Real estate is no different.

Moving beyond complex paperwork and legal jargon, real estate is now becoming an increasingly exciting prospect for buyers. Residential real estate, in particular, has boomed in demand. Digitization of process and services through proptech innovations has played a major role in this change. Real estate players have got one goal clear: enhancing customer experience through operational efficiency, changing the way how residential properties are bought, sold and managed.

Sowing the ‘Seeds for Change’

Probably the first major tech-enabled transformation in real estate sector came with the introduction of online portals for customer relationship management (CRM) services. The end-to-end tracking enabled by these platforms brought the property side of real estate in sync with the customers. Today, these platforms have carved a niche for themselves, having fundamentally changed real estate transactions, especially the residential ones.

Back in the day, a major hurdle faced by most customers used to be the financials involved. Residential real estate, as well as commercial properties, are big-ticket commodities. One needs substantial funds to purchase a property. While home loans have always been an option, availing them hasn’t been a cakewalk. And in cases where the buyer already had adequate funds, complicated payment processing protocols made transactions quite a hassle.

The integration of digital payment systems with real estate platforms has changed that. It has streamlined financial transactions, making the entire process hassle-free. Innovations in FinTechdomain have enabled seamless payment processing, quicker loan approvals, and better financial management for buyers.

Next-gen tech for next-gen real estate

With technologies like AI and ML, personalization and discovery have improved and investors can leverage these technologies to improve the recommendations, view properties with ease, understand the trends and data enabling them to make the best decisions without actually physically going to every single location. AI, in particular, is driving a wave of changes in real estate property management, AI has reduced manual interventions required at multiple steps of the property management. With automated data reporting, AI cameras and analytics, the world is changing faster than ever and it is just the beginning.

Blockchain is another example. It has driven a substantial amount of changes as well. While the technology has been around for ages now, it is now permeating into real estate. Property transaction costs are typically high due to multiple steps and tracking challenges. Blockchain is enabling end to end digital processes and reducing transaction costs at every step. Tokenization of real estate has been established across multiple countries with regulation enabling this technology in real estate.

Reaping the rewards

The adoption of digital technology in the residential real estate sector has brought numerous benefits. Transparency has improved, reducing the chances of fraud and enhancing trust among stakeholders. The buying and selling process has become more efficient, providing convenience to consumers who can now complete transactions online.

But perhaps the biggest benefit of it all is that the reach of the market has expanded. Non-local buyers, including NRIs, are able to participate in the Indian real estate market with ease. Data analytics offer investors deep insights, enabling more strategic and informed decision-making.

The way ahead

Despite its advantages, digital transformation faces hurdles. The digital divide, especially in rural areas, limits access to these technologies. Cybersecurity remains a significant concern, with risks related to data breaches and privacy. Then there is resistance from traditional market players who are slow to adopt these new technologies.

The future of Indian residential real estate will likely witness increased adoption of AI in property management, enhancing tenant experiences and optimizing operational efficiency. IoT (Internet of Things) will play a significant role in the development of smart homes, offering advanced features like automated lighting and energy management. Blockchain applications are expected to gain traction and expand, further simplifying and securing transactions.

To sum up

Digital technology is undeniably redefining the residential real estate sector in India. Integration of next-gen tech such as AI, ML and Blockchain is making property transactions more transparent, efficient, and accessible. As these technologies continue to evolve, they will further streamline the buying, selling, and management of properties, reshaping the market to be more consumer-centric and future-ready




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