TECHNOLOGY ENABLED DISRUPTIONS ATTRACTING INVESTMENTS
Riding on the tech enabled disruptions, the Indian real estate sector is witnessing a significant rise in investments flowing to tech-based real estate start-ups in construction technologies (ConTech); property technologies (PropTech) and digital business platforms.
Adopting technology interventions, embedding technology enabled construction efficiencies and enabling ICT-based infrastructure solutions is redefining stages of the real estate business life cycle across financing, construction, operation and management, marketing, and transaction stages.
Land acquisition: Drone mapping & Geographical Information Systems in land maps, Blockchain and E-MIS are streamlining land records.
Designing: Building Information Modelling (BIM) used in designing efficient buildings, and AR / VR technologies offer better means for collaboration and minimize design & construction related conflicts
Construction: Use of Lean Principles, Cloud based Project Management tools enable real time monitoring and data analytics. Use of interventions such as internet of things, smart sites technologies etc. are enabling efficient utilization of resources and resulting in time and cost savings.
Investment in prop-tech companies rose last year amidst a surge in adoption of virtual platforms for real estate marketing during the COVID-19 pandemic. This has been the peak investments since tech-based startups in India began entering the real estate segment in India, starting 2000s.
Con-Tech: Demand for faster, more efficient and cost-effective construction has resulted in increased usage of innovative construction technologies. Considering scalable technology solutions is a specialized task, several start-ups have emerged in the ConTech space, leveraging on available investor funding to grow and partner with real estate developers and contractors for collaborative construction delivery models.
Digital Business Platforms: Additionally, digital real estate platforms are witnessing increasing market interest from end users and financial investors as e-commerce business platforms evidences positive growth.
Prop-Tech: The focus has now shifted towards online marketplaces, integration of digital technology, and innovative business models, leading to the emergence of PropTech industry.
SO FAR $2.4 BILLION HAS BEEN INVESTED IN INDIA’S PROP-TECH INDUSTRY ACROSS 225 DEALS.
The prop-tech segment is likely to see a tremendous boost in the near future amid the growing use of technologies, including virtual reality, drones, big data, and artificial intelligence in home purchases.
References: Knowledge Report by NAREDCO & KPMG and Report by Housing.com