How is PropTech Shaping the Real Estate Industry?
PropTech is the newest catchphrase in the real estate industry today. Although challenges exist, PropTech has changed the real estate sector with the inclusion of technology, bringing multiple benefits to buyers and sellers. Erstwhile, the industry used to rely heavily on paper-based processes and personal contact. However, developers and consumers have taken things to the next level using technology in recent years.
From searching for preferred properties and constructing a unique project to selling to diverse audiences, PropTech has changed the environment for real estate stakeholders. Here, we study the way PropTech is benefiting the real estate industry.
Benefits of PropTech in the Real Estate Industry
The Indian real estate industry is growing fast. It is expected to occupy a market share of $1 trillion by 2030 and contribute 13% to India’s GDP by 2025. PropTech aspires to increasingly adopt new advancements & strategies to drive this sector, streamline operations, cut down on paperwork, reduce losses, and improve customer satisfaction.
Here are a few ways that are aligning real estate where PropTech companies in India and abroad benefit the real estate world:
Reduction of Paperwork and Easy Data Collection
Bringing Transparency across the Processes, Payments, and Communication
Proptech Brings the Benefits of CRM
Automating processes and real estate innovation drastically reduces paperwork, saving time and resources. Therefore, market players can focus more on communicating with market players, conducting market research, and attending to the other critical aspects of the real estate business. PropTech also makes data collection easier through automation.
Smart devices and sensors under the Internet of Things (IoT) system enable property owners to bring more clarity to the real-time conditions of their properties. They can coordinate with tenants 24/7 regarding the security and maintenance of facilities.
The same technology also brings transparency throughout payment and communications for real estate managers. For example, since Real estate sales have also gone online, business is transacted digitally, and documents are shared online in real-time. As a result, the process is a faster and more efficient way of transparently conducting business.
Another way that PropTech benefits real estate companies is through Customer Relation Management (CRM) systems. CRMs have come to be a significant part of PropTech and bring numerous advantages to the industry, including:
Increase in Productivity and Efficiency
Higher Customer Retention
Faster Response to Customer Queries
With CRM, you can automate repetitive tasks wherein your sales teams can focus on more critical activities. The automation herein can decrease the turnaround time for sales & marketing cycles and pave the way for more streamlined operations.
CRM keeps customers in the loop, updating them with newsletters, regular emails, and so on. The automated messaging features help to keep the customers in check and drive the way to retain them.
CRM also helps to bring various platforms together through a single window, ensuring seamless communication between customers and various departments within the company.
Customers can be reached automatically within minutes. Moreover, customizable messages include comprehensive information that manual operators might miss.
Taking Sales & Marketing to the Next Level with Automation
AI and other related technologies eliminate the monotony from sales and marketing. Using automation, marketers process huge volumes of information available through PropTech databases. It enables them to make better leasing, investment, and buying decisions. They can also benefit by finding best-selling opportunities. This step ties in nicely with the advanced features of a CRM.
Empowering Real Estate Digital Platforms and New-Age Agents
PropTech introduced cutting-edge technologies with digital platforms tailored to the needs of new-age agents who are only too eager to benefit from these new real estate trends. The real estate market, which historically lagged in technology utilization, has started to turn to PropTech and reap benefits in the past few years.
A prime example is how property managers can now use automated IoT systems to monitor energy and water consumption to minimize wastage, among other aspects of daily life at particular properties.
Showing Novel Ways to Manage Inventory Digitally
Inventory management is becoming more tech-driven than previously, based on manual methods and endless paperwork. More data is available to evaluate inventories and make purchase decisions making the entire stack of inventory management fast and efficient through a single window.
For example, the holding period of a property is 24 months before a new property owner can claim tax benefits. Delays in seeing units and subsequent allotment can cause loss to a property owner due to additional taxation. The tech-driven inventory management enables swifter transactions because prospective buyers can see units in real-time, and sellers can allot them faster.
IoT-Powered Property Management Tools
With internet-powered devices surrounding us, PropTech makes the best use of the Internet of Things (IoT) to power business functions and operate using connected smart devices. A prime example of IoT-enabled products and services is the emergence of smart cities and smart buildings as a result of PropTech real estate innovations.
Drones, BIM, & AI for Improved Construction Techniques
Building Information Modeling (BIM) forms the basis of digital transformation in the construction and real estate industry. PropTech has motivated real estate companies to use technology like AI and other tools for conducting their business.
Among such is the rising trend of drone usage. While visiting a property, it is not always possible to physically view the entire property span, particularly in gated communities. Prospective buyers can see the property in its entirety, significantly impacting property listings for a particular property.
Drones enable prospective buyers to see not only the immediate property they are considering buying but the entire layout, which is otherwise not physically possible.
Drones also help maintenance by scanning buildings for defects. For example, a palm-sized drone can scan a skyscraper in a short time and record the surface for cracks, measure the temperature, and so on.
BIM provides critical guidance to architects and engineers by helping them design and constructs buildings according to set procedures and safety guidelines.
AI uses algorithms and data analytics that provide critical information for future scenarios. Smart Contracts use AI to enable speedy transactions, drastically reducing searching and sorting. AI also helps in accurate property valuation. Even building services management has become AI-driven today.
Advanced Analytics and Reporting for Improving Operations
Companies are now set up to extensively use advanced analytics and reporting for improved decision-making and daily operations. As mentioned above, PropTech has introduced customized digital platforms tailored to the specific requirements of the real estate industry.
Real estate sales and marketing involve collecting, processing, and storing huge volumes of data. PropTech digital platforms enable easier, more efficient, and swifter data handling. It also provides AI-driven solutions in the various areas of real estate marketing, like investment, leasing, buying, selling, and development.
PropTech is universally beneficial to consumers, brokers, and developers in the real estate industry. Consumers get a 360° view of their options from digital access using IoT-powered tools.
Brokers make the best use of real estate digital platforms. They can improve their operations using the advanced analytics and reporting systems that PropTech brings. And finally, developers use drones, BIM, and AI to optimize construction techniques.
Digital transformation still needs to be completed in the real estate sector. But as we have highlighted here, PropTech is taking the real estate world to a whole new level. Stakeholders who believe in technology-driven real estate solutions need to take the plunge because it seems likely that the PropTech market is going to be on the winning side of technology in the future of the real estate world.
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