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Home sales are set to increase in 2023 and along with it, sales are likely to shift to digital platforms. Experts claim that there are good days ahead for proptech companies as real estate buying and sale continues to get increasingly onboarded on digital platforms.
Digital search is for initial search and to narrow down choice
The pandemic had accelerated online home buying, but real estate shopping has not entirely become a digital phenomenon anywhere in the world, including India. Digital platforms are still used for initial search and discovery, but deals are always closed in person. Online searches help people narrow down searches. Consumers are still attached to the traditional habit of physical site visits as big-ticket investments like a home are not done on impulse and require the tangible essence of touch and feel.
House-buying will remain hybrid
People are slowly getting used to the concept of touring their future homes through immersive virtual tours and buying the idea of making a booking online, looking at the convenience, security, and transparency of digital payment platforms. But they will still prefer to continue with the offline mode for crucial fact checks like due diligence or quality inspection unless maximum information and data are provided to them. In a nutshell, buying homes on the internet is still in a nascent stage and will take some time to become a reality.
Indian proptech: a reality check
Like major economies in the world, the rate of technology adoption is still in its initial phases in Indian real estate. However, the proptech market has seen a steep jump over the past two years and the uptrend will continue to unravel in the times to come. Proptech has already made deep inroads into every aspect of real estate, from search and discovery to transactions, planning, and design to construction techniques, and rental and property management. 2023 could see steady growth in proptech companies claim stakeholders. “In 2023, we will see more partnerships amongst key stakeholders such as property advisors, developers, private equity investors, and technology solution providers. Key areas in proptech value chain such as IoT, AI, blockchain, AR, hospitality tech will continue to see increased interest. Meanwhile, the IPO and valuation-driven approach which we have been witnessing over the past sometimes might slow down. The focus will be more on unit economies and creating solutions for mass problems,” Ankit Kansal Founder and MD, 360 Realtors told Business Today.
Proptech stands to gain from rising home-buying sentiments
Increasing interest in homebuying is likely to have a direct effect on proptech. Ashwinder R Singh, CEO of residential, Bhartiya Urban told Business Today: “With PE funding increasing by five per cent in H1 2022 from an already higher base of H1 2021. The momentous shift in 2022 in the proptech has been that the scope has widened from only property aggregators to VR platforms for virtual site visits enhancing the sales process, robotic inspection at the construction site, and advisory and transactional support for investors. Co-living platforms have again picked up with many offices opening up.”
Tech in property and cost-cuts
Developers, tenants, landlords, and other real estate stakeholders are fast adapting to proptech to lower operating costs. However proper implementation of technology could lead to better search and smarter decisions. Deepak Kushwaha, Principal Partner and Head of Engineering, Square Yards told Business Today: “AR/VR, 3D tours and drones to facilitate better search and discovery of properties, big data, AI, ML and Analytics to understand consumer behaviour and assess current trends and risks and blockchain for secure and transparent transactions, are some of the trends that will drive proptech in India. While metaverse is a new trend and leaders are experimenting with its possibilities, it will unlock exciting opportunities for consumers to buy real estate and make digital wallet payments in the future. All these exciting developments have increased investors’ appetite around the growth of proptech, with the market pegged to touch USD 1 trillion by 2030.”
High-growth indication for Indian real estate
Indian real estate went through some turbulent times for the past couple of years, but 2022 was a year of recovery and growth across demand, supply, sales, prices, and capital investments. Narayan Bhadana, Managing Director, 4S Developers told Business Today: “The real estate industry is rapidly adjusting to the data-focused strategy and progressing with the creation of client segments for the application of AI. Integration of new technologies such as AI to assess client behaviour and monetise the services in accordance with new-age client demands. The Indian real estate sector is predicted to reach $1 trillion in market size by 2030, up from $200 billion in 2021, and contribute 13% of the country’s GDP by 2025. Primarily, this can be attributed to the escalating demand for residential properties due to rapid urbanisation and inflating disposable incomes of individuals.”
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today
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