Real Estate expanding into Virtual Space with PropTech

This decade of the 21st century will be marked by technological advancements in every field and strata of life. The real estate sector is no different to that. The traditional methods and mindset might have slowed the pace of this transition but the onset of the pandemic made it necessary to adopt this harbinger of change. PropTech has now seeped into the DNA of Real Estate and the figures are testimony to that. As per statistics, 2021 witnessed a record fundraising in PropTech with $9.5 billion from investors and venture capitalists in the mid of November, breaking the previous record of $9 billion fundraising in 2019. PropTech is an acronym for ‘Property’ and ‘Technology’ and it encompasses all the sections of real estate, be it residential, commercial or retail. In the age of information, PropTech has enhanced connectivity and bridged the communication gap between various parties involved. Another aspect is that it enhances the standard and ease of living of the users. They can be understood as ‘SaaS’ (Software as a Service), ‘PaaS’ (Platform as a Service) and ‘IaaS’ (Infrastructure as a Service). Collectively, the digital transformation they have brought have completely changed the real estate scene in India. It is estimated that the PropTech segment in India will reach $1 Tn by 2030 from $120 Bn in 2017 (INC 42) despite exponential growth in recent years. The early examples of PropTech would be the listing websites that list the properties on the platform to buy, sell or rent. By removing the intermediaries from the process, they made it transparent, smooth and credible. In India, the property brokerage business is estimated to be worth $1,400 million, or $1.4 billion. Technology, now, has emerged as a secure and competent tool in the Commercial Real estate Segment (CRE) for landlords, tenants and investors. The drastic transformation can be witnessed in the commercial real estate sector. Apart from the listing, the option to see and compare all the available real estate in an area, their prices and a personalised search as per the need of the consumer are being made available. Developers are now providing 3D and VR views of properties. Some businesses also assist with the transaction process such as loan advisory, help with rental agreements & legal services. However, if one has to specifically mark a section where this digital transformation is most apparent, it will be the office spaces. After 2 consecutive lockdowns and a work-from-home scenario, businesses have turned to technology to adapt to the ‘new’ normal, providing cloud-based information systems, digital locks, voice-controlled amenities, virtual board rooms for meetings and conferences and so on. The health-wise safety has taken the center stage and more focus is on the wellbeing of the ‘consumer’. Apart from Gen X (age bracket of 42-57), the Millennials (age bracket of 26-41) have emerged as the new customer class and being a witness and the forerunner of the age of the internet, they not only rely heavily on PropTech, they are spearheading this trend with the innovation and visionary start-ups too. PropTech India Insight Report by Built World Technology says that India is poised to become the leading emerging market PropTech destination as it has all the necessary ingredients; a large and wealthy real estate sector, megacities on the rise, a growing middle class and vibrant tech hubs. One doesn’t need a soothsayer to know India is soon to be a trailblazer in PropTech and this trend will reform the real estate sector from what we see today. Source: Financial express