‘Proptech’ has been floating around in the real estate market for quite a while now, and it has eventually cemented its place in the minds of people. It is the modern-day solution to the age-old problems that the overworked professionals feel, along with the fact that it comes with an increase in the new market as well.
In a world that has adapted itself to technology in such a way, that it has become an integral part of people’s lives, it becomes incredibly important to take our businesses in the direction of digitalization as well. It is not just businesses that strive to become an active part of this, even real estate companies have started to come to the forefront with their ideas and campaigns.
The constant advancement in technology, and the benefits that it provides, have become a hot cake, and everyone wants a piece of it. From companies in the cosmetic sector to the ones based in the corporate world, as well the real estate companies.
Proptech- What is it?
Proptech is the amalgamation of the words property and technology, which at times also overlaps with financial technology. It is used by experts in the real estate world to speed up the process of buying, selling, researching, marketing, and managing properties. It is the beginning of fine-tuning between the property market, and technology.
The concept of property technology is remotely new to the world, and not everyone is accustomed to doing things the digital way, but if you are someone who knows the ins and outs of the sector, then you are a person who has been a witness of the gradual progression and development of the real estate market.
The pandemic has also played a major role in the advancement of the market because even though there were restrictions, the real estate world stopped for none. People turned towards the digital direction, and they could actively participate in the process of purchasing properties from the comfort of their homes. It also came as a blessing in disguise for those people who were on the lookout for purchasing properties in other parts of the country where they reside. There have been speculations that the market is going to be on an uphill climb from henceforth, owing to the number of consumers who prefer digital comfort over anything else.
The value of the Indian real estate brokerage industry is estimated to be $1.4 billion or $1,400 million. According to the data acquired from housing.com, it becomes evident that most of the real estate business is done offline, and Proptech has developed in India, because all the purchasing decisions are being taken online by the concerned parties, the final transactions are still taken offline by the people. But, the estimated number of internet users is supposed to reach one billion by 2025, which is a benefit as there will be significant opportunities created for the various businesses in this sector, and due to the multiple ways that technology possesses to transform the sector entirely, the stakeholders have high hopes for the upcoming digital revolution.
Cost effectiveness and the effect of technology
Technology has played a major role in the industry by giving the professionals a benefit of cutting costs, and the luxury of cost optimization, which provides their clients with the options of purchasing properties at a low price, yet not having to compromise on their dreams.
The real estate sector has found it tricky to adjust to the world of technology and the digital aspect of the market, as there is an overgrowing need for transparency, and improvement in the sector from the client’s side, and the rollout of 5G, along with the acceptance of the AI technology, threatens to upend the estate value chain, but the pandemic has seen an increase in the real estate market investments.
There have been attempts made by the shareholders to investigate the technical aspect of the market’s gradual lean towards digitalization, which has lead them to believe that Proptech has resulted in the shift of power in the industry from the conventional thinkers and developers to the higher achieving and technologically inclined new-age real estate companies.
Augmented technology, virtual reality and bot technology will be used in the near future to replace the offline customer encounters that people have. The advancement of technology has provided the consumers with the luxury to browse whatever property they wish to purchase/rent, from the comfort of their own house, with the help of the mouse.
Proptech has made the process of buying, selling, renting and advertising properties comparatively easier. While the owners can list their properties on the concerned platform, while the buyers can easily browse, and compare the options that they are presented with, and choose the one that appeals the most. Proptech has also made the process of renting and bank transactions hassle free and smooth for both the parties.
Top 5 New-Age Real Estate Startups
Infra Land is a company that believes in the concept of ‘Low carbon infrastructure for a sustainable world’. Their attempt to bridge the gap between the real estate sector, technology and the infrastructure sectors has become the basis of their thought process behind their ideology of making the company more climate friendly by realizing sustainable developments for the future generations.
Land Deed provides its clients with an Encumbrance Certificate, which is used as evidence of clear and marketable title, and to show that the property is free from any legal liabilities.
PeProp.Money provides their consumers with the ease of listing, buying, and selling of properties, and makes the entire process hassle-free for all the parties involved. It is the one-stop solution provider to every need of the consumer, as it ranges from the real estate market to banking assistance, and more.
NoBroker has shed the age-old traditions of having to pay the brokers during the process of buying properties, and has brought forward a non-conventional method of making things easier for the consumers, while making sure that the market remains an easy to access forum for one and all.
Square Yards provides the consumers with the luxury of becoming a part of the real estate business from the location of their choice, while keeping the options for their preferred choices open.