Technological expansion is like a train. If you miss one, you can catch the next and reach your destination. But how soon, is what matters. Technology is nothing but sharpened automated tools, which help carve out end products that are much smarter, faster and cost effective.
Let us talk about the real estate market, which is expected to reach $180 billion dollars by 2020 (as per CREDAI and JLL report). The sector is making positive strides in the right direction with the help of long term confidence generation measures like The Real Estate (Regulation and Development) Act and the recent Insolvency and Bankruptcy Amendment (Ordinance) Act, 2018, which treats homebuyers as financial creditors under the Code.
Adopting technology to be cost effective is the need of the hour and passing on the advantage to the real customers is where profitability lies. Today, developers and construction magnates have to keep abreast with the technological changes taking place around the world and embrace them for a more viable business model. Continuing to resort to age old techniques and practices, many real estate players may soon find themselves on the brink of extinction if they refuse to walk the change.
Technology to the rescue of developers
Real estate development right from project initiation, project conception, management to marketing, hinges on timely delivery of projects and avoiding any unnecessary delays. Technology advancements have made it possible, at every stage, to deliver project after project on time, maximising margins without resulting in an increased cost to customers. With prefab and high-end scaffolding techniques, which can be manufactured in blocks and be put to use in real time, complete kitchen and bathroom units can save a lot of time and money and help deliver the projects on time.
If one compares the cost and time, developers can save almost 64percent of time as compared to brick and mortar operations. Time is money, so what takes a year, will now take only 120 days to complete if technology is used at every step of construction. Prefab, preconstruction of blocks, kitchen and bathrooms are not only fine quality products but also help market the product better. Labour intensive techniques tend to lead to poor quality, manual interceptions and highly unsustainable quality standards.
High tech homes control the entire housing amenities such as the lighting system, security cameras, fire and gas leakage detectors and sensors to detect any untoward entries and energy efficient kitchens have become specialized marketing tools besides providing much safety to the customers.
Technology helps adding an extra edge to projects, such as augmented reality or 3D tours of the property, roads, gardens, club area, utility areas, ambience and placement of various fixtures, thus saving on time and cost. Artificial Intelligence (AI), machine learning and deep learning are also being leveraged in certain cases to improve the overall efficiency of various processes.
Smart buyers aim for smart homes
Highly informed buyers expect the best and know the ecosystem offerings well. All new security features, comfort levels, convenience and entertainment are the need of today’s buyers and a compelling reason for developers to adopt technology. This creates a catch 22 situation for the real estate buyers, where refusing technology-enabled living means losing on capturing the market potential. Without technology aspect incorporated into all four major aspects of project development i.e. Conceptualisation, Conceiving Ideas, Implementation and Marketing, the entire package is half-baked.
India, which is on the cusp of making history by constructing mass housing by the Government for every citizen by 2022 and commitment to developing 100 smart cities, this can only happen if real estate developers are fine-tuned with the changing reality of real estate technologies.
The road ahead
Outsourcing complete houses is also being practiced in many countries and may become a reality in India in the years to come. But until then, the change first needs to take place in the mind and then in the real world. The real estate fraternity must be prepared for the technology revolution and the earlier they adapt, the sooner it shall transform the Indian real estate landscape into an evolved sector. As innovation in other industries takes consumer experience to the next level, the consumer expectations from real estate will grow and put weight on the real estate sector to evolve with the changing times.
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