Digitalization – The New Outlook To Real Estate
In the present unprecedented times of COVID-19, Societal Physical Distancing and lockdown of physical spaces have turned up to be a compulsion. A major trend shift can be witnessed bringing in young home buyers. This caters to the necessity of Digitalization in Real Estate. The sudden advent of the pandemic plays an integral role in accelerating the process.
Digitalisation helps unite customers, developers, and operators by breaking the geographical boundaries, helping understand the diverse customers’ demands. The digitized interface of the leasing and purchasing properties improves the transaction. It enables individuals to browse a wide variety of properties and to find their fit on a Click. Stakeholders believe that digitization will shape the real estate business and ease out complex transactions.
Taking the Digital Leap –
- Virtualization– Multimedia content marks amongst the most important steps in the process of Digitalization. As a substitute to the formerly used picture and description based approaches, the usage of virtual tours with the tools like Virtual Reality (VR) can be brought to implementation. This would help the customers visualize how the property might look in the real world.
- Building Information Modelling (BIM) – Building Information Modelling (BIM) is an intelligent 3D model-based process helping the architecture, engineering, and construction (AEC) professionals plan, design, construct and manage buildings and properties. With BIM, a building is built twice– first virtually and then physically. Making changes in the virtual model is easier than in physical. This makes it highly cost-effective and time-saving.
- Cloud-based solutions- Cloud technologies help collaborate with various people online and support remote-working. It helps access the databases and inventories anywhere, anytime to help increase productivity. Cloud services are extremely popular regarding data security. This would help the developers store sensitive information about owners, buyers, terms, prices of deals, and more.
- Artificial intelligence (AI)- AI is used in recognizing relationships and patterns in large data sets and can examine the effects of possible future scenarios closely. The evaluations are replaced by actual data and insights leading to property-specific decisions. These analytics help the developers make better decisions and seek newer opportunities.
- Live streaming- Live streaming has been around for quite some time, but recently it became so mainstream and accessible. This would help the developers broadcast about their properties and engage with our audience in a new way. This may include the engagements like steps to Homeownership, interviews with your Preferred Lenders, or interviews with Home Stagers.
How real estate platforms are using digitization to increase sales –
- Backed by technology, one of the biggest real estate firms, Square Yards sold over 3100 units online, worth INR 1600 crore, in the lockdown period. This has helped them move their market shares from 3 percent to 18 percent in the past three months.
- Amit Agarwal, Co-founder & CEO of NoBroker.com, a tech-based real estate platform remarked that they were successful in selling 200 homes only via Video Walkthroughs i.e. without an actual property visit during the pandemic.
- Uday Lakkar, Founder and CEO of co-living space CoHO.in said that the usage of virtual tours of CoHo properties have increased the newer tenants who may shift post-lockdown
This being the case, we can undoubtedly proclaim that digitalization had entirely transformed the conventional conduct of the real estate business. Technology has helped organizations to digitize processes and make data-driven decisions about how space should be handled and used. Moreover, the social distancing had acknowledged the importance of Digitalization in the real estate sector and awaits the business back on track!
- COVID-19 Impact: Digitalisation Powering next Wave of Change in Real Estate Sector. Link
- Five Steps for Real Estate Companies To Embrace Digital Transformation. 2 Sept. 2019, Link.
- Shruti Mishra @ShrutiMishra_ share, and Shruti Mishra @ShrutiMishra. “From Virtual Tours to Online Bookings: Indian Real Estate Takes a Giant Digital Leap.” Com, cnbctv18.Com, Link
- “How India’s Largest Real Estate Platform, Square Yards, Is Using Technology to Gain Market Share and Build an Integrated Ecosystem.” The Economic Times, 11 June 2020, Link.
- Building Information Modeling (BIM). Link