Image source - https://bit.ly/37H9Orp

This article has been written by Tripti Gupta, pursuing a Certificate Course in Real Estate Laws from LawSikho.

Introduction 

Whether it is a person looking to win the real estate marketing game by selling more properties, or someone looking for some additional source of income in form of rentals from the ownership of a flat and who wishes to reach out to potential homebuyers and tenants, or a prospective homebuyer who has just shifted her business to Chandigarh and is intending to buy her dream home, the new technological developments in real estate industry have probably affected our lives from tip to toe in the past few years. 

This impact can more manifestly be observed since March 2019, when the world has been cocooned in the shell of the worst-ever recession as an impact of COVID-19. The real estate sector is one of the most flourishing sectors in the country contributing nearly 7% to the country’s Gross Domestic Product (GDP). It is indeed the second largest employment sector in India. Technological developments have acted as a catalyst for change in all businesses, including the real estate industry. 

Download Now

Now quickly look at the statistical data we have, to enumerate the power of technology:

  • Nearly 43% of prospective homebuyers start the process by looking online.
  • Nearly 92% of the buyers have access to the internet and use it efficiently.
  • Nearly 50% of the buyers use a mobile app or website in their home search.
  • Nearly 90% of realtors use social media to advertise.

Technological advancements in the real estate sector

The real estate sector has witnessed a long-lasting and positive influence of technological advancements. These have affected both- the developers and the prospective buyers, and it seems that the impact is going to multiply exponentially.

Few positive changes that the real estate sector has witnessed because of technological developments are explained as below:

Emergence of real estate online services 

Before the technological boom, real estate transactions have always relied on the physical meetings between the broker/agent and the prospective buyers where the buyers would spend hours sitting in the broker’s office shortlisting properties of their preference based on their budget, location, and other criteria. Then the buyer would spend days on the roads visiting those properties. All in all, buying a home was nothing but a humdrum task. Undoubtedly, with the advent of technological advances, a new species of tech-savvy, well- educated and well-connected agents, as well as buyers, have emerged that have changed the outlook of the real estate industry in and out. Now, the list of properties that fits the buyer’s preferences is just a click away.

India has witnessed the setting up of various start-ups that provide online real estate services, some of them being:

  • 360realtors.com is a company that provides real estate advisory and helps customers to find the property as per their requirements.
  •  Nest away is the largest home rental network.
  • NO BROKER makes it possible to buy/sell/rent a house without paying any brokerage.

For further insight into the up and coming/established startups, see this- 10 best startups in Real Estate Online Services.

Obtaining funds 

Procurement of funds for buying homes by prospective homebuyers earlier used to be a tedious journey but today owing to technological advancements this has become a hassle-free exercise. Now, prospective property buyers can apply for home loans online in various banks and lending institutions by entering their CIBIL score. CIBIL score is a parameter that tells how good the person has been in terms of repayment of earlier loans, the financial position of the person to repay the loan, and how good a person is with his investment choices. Most banks check the CIBIL score and if satisfied, they immediately sanction the home loan. This process now does not take more than 10 days. Some of the most popular banks offering home loans in India with their market share percentage has been depicted in the pie-chart as below:

Technology has made the procurement of home loans easier and thereby given a boost to the real estate industry.

Construction technology 

Let us first understand what construction technology is. Construction technology is the collection of innovative tools, construction management soft wares, modern-day construction equipment, and machinery, etc used during the construction of a project which enables advancement in the field of construction. Technology has made the construction industry more efficient, productive, and collaborative. Some examples are:

  • 3D printing as a construction technology also known as Autonomous Robotic Construction System involves the transportation of a 3D printer (industrial robots) to the construction site and automatically constructing the building with 3D printed concrete or mechanically cut bricks.
  • Cloud Mobile technology has resulted in the increased use of tablets and smartphones. Now people are well connected, they can access any information and work from anywhere.
  • UAVs (Unmanned Aerial Vehicles) also known as ‘Drones’ allows the construction site managers to track work progress and make accurate decisions based on day-to-day data. 
  • Construction Management Softwares help the contractors to track the progress and control its performance as all the stages of the project are well recorded. 
  • Building Information Modeling (BIM) is an intelligent 3D model-based process that enables construction professionals to design, plan and construct the buildings more efficiently.

Thus, the technology is having a penetrating effect on the construction industry. 

Marketing strategies

Before the technological advancements, the marketing techniques adopted by the developers to broadcast their company and advertise their ongoing, completed or upcoming projects used to be through hoardings, pamphlets, advertisements in newspapers, word of mouth, and other traditional marketing techniques. However, in this technology-driven era, there exists a wide range of marketing tools that a realtor can use to create their brand value and market their properties.

A few of the technology-driven marketing platforms which the realtors can use to communicate with buyers and sellers are mentioned below:

  • Build a professional website with an emphasis on aesthetics and functionality.
  • Create Video walkthroughs/Virtual Tours to provide an insight to the prospective buyer regarding how the property looks in reality.
  • Reach out to the right kind of social media influencers and collaborate with them.
  • Develop email marketing campaigns to collect email addresses and advertise their products to them.
  • Create a Facebook, Twitter, and Instagram profile and post videos and pictures of the real estate using relevant hashtags.
  • Build a Blog and create content optimized for SEO.
  • Co-host a Webinar on the topics that will interest prospective buyers.

In today’s competitive and technology-driven era, there are numerous digital ways to market real estate.

Smart home technology 

Technological advances have a positive influence in improving the way of living of people and have also considerably affected the housing sector. Home automated services appraise the property by both providing monetary as well as other benefits. If the house is equipped with home automated services and devices, the resale value of the property is increased manifold. The other benefits are in the form of comfort and improved elderly care due to smart home technology that automates household tasks.

Smart-home technologies include home security cameras, smart thermostats, smart locks, 

smart lighting, sensors, monitors, remote-controlled mechanism of home appliances and devices to automatically control the working of various appliances like TVs, Fridges, washing machines, Air conditioners, automatic garage doors, smart curtains, smart glass windows, and many more.

As technology continues to evolve, the demand for smart homes is only going to rise owing to the conveniences and comfort it offers.

Impact of technological advances

This positive impact can very well be observed on the buyers and the developers. This has carved out the way for smarter deals for everyone. Nowadays, from the beginning of the home search by the homebuyer to finally entering into the sale agreement to finally making payments; every transaction can be executed by a click of a button and that too from the comfort of your house. Isn’t it amazing?

Conclusion

As Peter Williams, CEO of Deloitte Digital said, “Real Estate agents will not be replaced by technology but by agents with technology”. The agents who willingly and enthusiastically accept the power of technology will surely win the marketing game of the real estate sector.  Some suggestions on how agents can embrace technology are:

  • Collect as much data as possible about your clients by using Customer Relation Management (CRM) tools. This will help to manage and analyze the data of customers.
  • Invest in business analytics to study consumer behaviour. This will assist the company to market the right products and services to its clients.
  • Invest in technologies like Real Estate Simulators and those that will assist your clients to arrive at an investment decision. 

Technological advancements in the real estate sector have resulted in the rise of what we can say ‘REAL ESTATE AGENT 2.0’ who for their survival will have to keep themselves updated on these emerging technology trends and learn to gain advantage from them. This has become more important as the largest group of prospective homebuyers today comprises tech-savvy millennials.

References 

Students of Lawsikho courses regularly produce writing assignments and work on practical exercises as a part of their coursework and develop themselves in real-life practical skill.

LawSikho has created a telegram group for exchanging legal knowledge, referrals and various opportunities. You can click on this link and join:

Follow us on Instagram and subscribe to our YouTube channel for more amazing legal content.

RELATED ARTICLESMORE FROM AUTHOR

LEAVE A REPLY

Please enter your comment!
Please enter your name here