10 Innovations That Changed The Face Of Real Estate Sector
The real estate sector has seen a lot of changes over the recent years, and much of that is attributed to the rising use of technology in construction and the growing confidence of financial companies in the industry. MakaanIQ lists top 10 innovations that have changed the face of the real estate industry.
Online marketplace: In the past few years, real estate in India has moved online, thanks to the growing number of tech-savvy consumers who like to visit online before making a purchase decision. Besides, these portals have made interactions between a home buyer and a developer easier, and also lowered significantly the amount the buyer had to pay a broker or third-party agent.
These portals offer the user a centralised data and all the information necessary to buy a home. In fact, the users can use filters to zero in on projects that would fit their bill. Taking a step ahead, the portals now also have free-to-download mobile applications that can search projects for you based on your Global Positioning System (GPS) location.
Real estate regularisation: A certain amount of transparency has been brought to the real estate market through regulation in many countries. These laws regulate the developers and secure rights of the home buyer. These laws are expected to organise the otherwise unorganised markets. The real estate law is now helping Indian to move in that direction.
3-D walkthrough: One technology that has taken the real estate industry by a wave lately is 3-D. This has become a critical technology being adopted by developers to design high-quality walkthroughs on online portals for home buyers. These walkthroughs enable buyers to look at all the topographical aspects of the property on their hand-held or computer devices. This industry uses drone footage or computer graphic (CG) rendering to present a clear picture of the project, as well as the apartment one plans to buy. Interestingly, this technology is being used for construction as well.
Home automation: Home automation is being adopted at different levels in both residential and commercial set-ups. With Internet of Things (IoT) now set to become a reality, the technology of home automation will go a notch higher. This technology has led home owners to regulate their home electricals and appliances from the click of a button, along with ensuring safety. Companies like Apple, Nest and Samsung have demonstrated many prototypes and commercial devices that are poised to change the lifestyle of their customers.
Private equity in real estate: Private equity (PE) funds have triggered aggressive investments in the property market. Investing directly into the market could be a prolonged task that requires identification of a location and estimation of a project's future value. On the other hand, realty PE funds allow a buyer to invest in the market on fund manager's expertise. PE funds also enable an investor to put money in foreign real estate projects.
Green designs: There is a growing concern for the environment. Developers have recognised the impact of unauthorised construction or use of harmful building products, thus, causing a blatant misuse of natural resources. To ensure that further degradation is not caused, developers are willing to invest in green building technologies and methods. Strict government guidelines have also been issued to maintain the ecological balance of the society.
Referral programmes: The latest trend is that the developers who plan to further expand their market are doing so through customers. These referral and loyalty programmes ensure that new customers already trust the developer. The existing customers being used as referral points, meanwhile, get benefits like complimentary furnishing or discounts.
Affordable housing: Low- and middle-income groups are usually constrained by high prices of real estate. To take housing to these classes, the concept of affordable housing has emerged. Many developers nowadays launch projects that offer apartments in smaller configurations, with basic facilities, making them livable and yet affordable for the low- and middle-income groups. Around 90 per cent of the demand in housing industry today is for affordable housing.
Customised payment plans: Nowadays, home loan facilities allow customers to choose payment plans according to their financial status. These plans are flexible and some of them can be availed of at a minimal or zero down payment.
Faster construction techniques: Faster construction techniques, including pre-fabrication and 3D printing, help developers construct projects in less time. With these faster techniques, the developers can come up with more projects, thereby meeting the ever-growing demand for real estate. Besides, several developers also adopt off-site prefabrication units, which facilitate faster and more precise construction.