Technology Playing A Vital Role In Real Estate Industry
Innovation and technology are two of the major growth driving factors that are contributing towards the rapid development of most industries and sectors around the world. Rapid adoption of modern advancements is key when it comes to becoming successful as it can give one the necessary edge over other competitors. The same rings true for real estate sector, since the better tech-based products you offer, higher are the chances for increased sales, even during unexpected circumstances like a global pandemic.
Coronavirus pandemic has affected business operations across multifarious sectors throughout the world. In India, real estate and construction sectors are also witnessing the aftereffects of this situation, coupled with home buying and property related trends that are being driven by this situation. Therefore, the need to survive during such unprecedented times has been greater than ever, and adopting technology can pave the way for smoother operations.
Impact Of Covid-19 On Indian Real Estate And Construction Sector
A survey conducted by KPMG to evaluate the cost impact of the Covid-19 pandemic on construction projects and its important aspects like workforce, material, plant & machinery, etc. as well as the net impact on overall costs of construction provided more insights. It suggested that labour costs for skilled workers are expected to rise by 20 25 per cent, while the cost for semi-skilled and unskilled workers is projected to increase by 10 15 per cent. A major factor contributing to this trend could be the fact that most workers left cities for their hometowns to protect themselves from the pandemic. To hire more during such a time would then, as a result, drive labour costs upwards.
Coronavirus pandemic has affected business operations across multifarious sectors throughout the world. In India, real estate and construction sectors are also witnessing the aftereffects
The survey also shows that under-development / under-construction projects are expected to be hit by further delays by minimum two to three months due to factors like geography / location and the extent of coronavirus cases in and around project sites in those regions. Furthermore, the overall delay in construction period as a result of lockdown could lead to additional interest cost on working capital loans will have to be taken care of by contractors and / or developers depending on risk sharing mechanism.
Apart from aforementioned concerns, the KPMG survey says that revised standard operating procedures that will include personal protective equipment, social distancing protocols, and more focus on hygiene could in the short term, further drive up project costs.
With all these aspects affecting the construction sector, it is natural to wonder about the real estate sector being affected by these changes. Other reasons like shift in home buying trends led by the work-from-home / remote work model, job and pay cuts, etc. are further defining the future of real estate in India. To deal with and keep up with such rapid changes, this ever-surviving sector is now witnessing a silver lining in the form of technological innovation. Let us explore how technology plays a vital role in real estate.
Technology The Major Growth Driver Of Indianz Real Estate Sector
As I previously mentioned, adopting latest technology can significantly improve business operations by creating a more effective and efficient system. We at Goel Ganga Developments, too, have turned to `Tech' for increasing productivity and maximizing work during these unprecedented times. Let me give us some examples of the same:
• High-definition site surveying methods & geolocation systems: With the help of technology, builders like us can conduct digital mapping, estimating, and site surveying via high-end methods. Usage of geolocation systems to track project sites from a different location is very useful as it means that we no longer have to rely solely on footwork and physical presence for such tasks.
• Internet of Things (IoT): Internet of things or IoT-based systems have managed to become a necessity when it comes to technological adoption. One prime example of IoT can be seen in the form of home automation or smart homes that are gradually becoming the next best thing in residential real estate.
• Digital collaboration initiatives & mobility: We have majorly shifted towards digital spaces for better management of projects. By going paperless, we are also able to navigate different details via dedicated databases for specific sites, leading to improved operations and flexibility.
• Futuristic property construction & design: Advanced technology has allowed Goel Ganga Developments to explore new-age property construction and design methods.
• Use of Drones: With Investors and Global clients not being able to visit the site in person due to travel restrictions during the ongoing Pandemic we have been using Drone cameras to give them a live tour of the land parcels.
• New generation building information modeling system: Such systems are streamlining the entire construction and property development process by creating a comprehensive digital representation of a project's physical as well as functional characteristics, and combining three key elements scheduling, budgeting, and designing.
We are lucky to be living in the best time to integrate innovative technology in all aspects of life, especially one that fulfils one of our basic needs, i.e. shelter. Be it for construction, full project life cycle management, or upgradation, technology has played an extremely vital role in real estate. Judging by existing trends, it can be said that the future of real estate looks bright, even during or post-pandemic.