What is PropTech? How have real estate companies used it and how has it benefited the industry?
Proptech is the word used to describe the technological/digital solutions which have entered the real estate sector in recent years. These solutions have eased the process in which realtors and clients engage in the market. Virtual platforms, AI and Cloud Technology are some of the proptech tools which provide a user friendly and data rich experience to all stakeholders within the sector. Proptech has helped in reinventing the business approach of the real estate market. It has reduced the hassle of paperwork with processes getting digitized. Virtual visits of properties can be done on various applications and video calls. During the unprecedented times of the pandemic, PropTech has helped up-and-coming companies to propel their business through innovations in technology and navigate through the challenges that Covid-19 has imposed.
How has the Indian market accepted PropTech in their search for real estate? Are the agents comfortable using the new tech?
The Indian Real Estate players have embraced technology wholeheartedly in a big way. The quality and efficiency of the services provided by agents have improved by leaps and bounds. Some of the most adopted tech exists now in areas like AR and VR for market visits and site visits, Building Automation Systems. Big Data and BlockChain are also in its early stages of use by companies for client servicing and project management and execution. It has been truly surprising to see how quickly the agents themselves have picked up regular and consistent use of the technologies. Of course, there are still some individuals who trust their traditional methods, but the beauty of tech is that it does not nullify traditional methods, but only adds to it.
Are there any limitations to cloud-based tech?|
One might say that the ease and convenience of cloud based tech trumps any disadvantages it might have. But it is always better to be aware of any disadvantages and have solutions ready to combat them. First and foremost, internet connectivity is the biggest nemesis of cloud based tech. Without a stable internet connection, it becomes almost impossible to conduct a business that relies on the cloud. Next comes the technical aspects. It has become mandatory to have an IT resource available at all times to rectify any momentary issues that crop up. Moreover, servers might have “downtime” when they are being serviced, or new features are being added. But the most important aspect that needs to be taken extremely seriously is security. The security measures taken to keep your cloud safe can never be compromised. Investing a good amount of time and money into it is certain to pay off in the long run.
Has this technology helped agents sustain their business during the Pandemic? Can you share a few examples?
Absolutely, yes. In times of lockdowns and social distancing while a lot of sectors that relied on face to face transactions were floundering, adoption of PropTech came as a boon to the real estate industry. For example, agents were able to use VR to show home buyers around their prospective property. Agents were also readily available to answer the queries thanks to their enabled mobility.
Apart from virtual house viewings, what are some other PropTech trends that are benefiting the customer?
Virtual viewings are just a small part of the PropTech trends that have taken over India. PropTech has entered the scene for even casual house hunting. Agencies now have websites that not only have pictures of the house, but also details of the size, location, and features of the area. Vicinity to shops, hospitals, transportation frequencies, etc, can be seen with just a single click. E-signing has also become a norm in transactions. Both agents and buyers are no longer needed to be present physically to sign documents. With face-to-face interaction discouraged, e-signatures have been crucial in maintaining business as usual. Lastly, smart homes are now favoured by most home buyers. Reports show that most home buyers now are the tech-savvy millennials, who prefer everything in their house to be connected to their Smartphone. Be it the temperature, wifi, heating, AC, they are able to tweak all of these settings with apps and softwares installed in various devices.
As a market, where do you see India in the next 5 years with these new technologies?
We can definitely witness steady and increased technology adoption in the years to come. The pandemic has fuelled this trend and with the growing digitally savvy population in India more adoption of technology to transact real estate businesses is a reality. We have witnessed spiking growth on our platform in the last few quarters and this is testimony to the growing popularity of virtual offices in real estate. With our EXP platform, we would like to give a new user experience to our clients experiencing properties by sitting in their homes through virtual/ augmented reality and helping them make their decision on buying the properties. There is a huge opportunity for real estate developers in selling their inventories globally, with our cloud based platform it can be done seamlessly.
Are there any privacy concerns to PropTech? For example images / videos of properties being leaked to third parties?
Most websites have regular pictures of a property open to the public. But specifically videos that highlight the features of the house, and floor plans are made available only between the agent and the potential buyer. As long as the security of the cloud is trustworthy, agents and buyers can rest easy.
What is the future of PropTech?
The future of PropTech is imminent and bright. The new trends are being accepted and adopted by all users owing to the ease of usage. Not to mention, a lot of these trends are also good for the environment. Smart-homes, for example, can be built with eco-friendly materials, and with more working professionals being comfortable working out of their homes, the frequency of travel will also go down. This is also made possible by Virtual Offices, another trend that is slowing being implemented across the industry. Agents are able to enjoy a corporate office setting “virtually”, but from the comfort of their homes, or while being mobile. They are able to attend meetings, and collaborate with their colleagues with extreme ease. This is sure to become an indispensable feature if our situation of social distancing extends. Moreover, PropTech is changing according to the needs of its customers. Things will be done faster, and in a more transparent manner with every interaction and transaction on record. But most importantly, the future of PropTech will prosper due to two features: mobility and global connectivity.
