RERA
(Real Estate and Development Authority) Act 2016, a bill passed by the Modi
government with the sole objective of establishing a Real Estate Regulatory
Authority for the regulation real estate sector. The act ensures the sale of
plots, apartments, buildings and setting up of a tribunal for grievance
redressal and to set up rules and regulations of the regulatory body. As per
the present scenario, the real estate sector is experiencing a massive
slowdown, therefore RERA Act and the infusion of Technology can be fruitful in
reviving this particular sector. Focus on technology is imperative because it
is the key driver for growth in all spheres.
The
adoption of technology has been very late in the real estate sector but has
made it easy and attractive with the help of advancements and innovation. As
the government aims towards a five trillion economy, the real estate sector
plays a pivotal role in it. According to IBEF reports, the real estate sector
in India is expected to reach US$1 Trillion by 2030 and by 2025 it will
contribute 13% to the GDP. The fact that this sector holds a market size $150
Billion still has tremendous growth ahead and eventually will become the major
player in the contribution of the GDP of the country. As far as technology is concerned it has made
the way simpler for the people as it can meet its customers within seconds. The
conventional method of using paperwork for all invoices, transactions done have
now been converted to a digitalized platform. Technology has increased the
quality standards of the construction and has tremendously reduced the
construction time of a project. Developers have started using a common platform
which brings the developers and customers together were buying of properties
has become smoother. Focusing on various technologies that are used or can be
used in this industry.
⮚Blockchain Technology:
Though
India has not been fully operational in adopting the blockchain technology
still there are various opportunities in this sector. It will bring
transparency and increase the efficiency of India's Real Estate sector. It
enables safer and faster transactions with minimal intervention. It makes
buying and selling more convenient by removing the intermediaries.
⮚Internet of Things:
Today
IoT has hugely penetrated the real estate industry at a building level. It has
made the lives of people simpler. People having home appliances, security
cameras, etc. can now control it via the internet. People can also use this
technology for energy saving.
⮚Process Automation:
The
larger player has been using ERP (Enterprise Resource Planning) system for a
long time but due to process automation affordable ERPs using SaaS subscription
model are being made available. This prevents the players from spending large
capital costs in the development of ERPs.
⮚ Augmented Reality (AR):
It
uses a computer-based model to visualize what the project/construction will
look like upon completion. So it allows developers to make corrections before
the construction starts in this way they can eliminate the flaws in the
project.
Artificial
Intelligence is considered as the major technology in shaping the Real Estate
future. Also, it is the radical and groundbreaking technologies set to
transform the market shortly. Ways in which AI is modifying the real estate
sector are:-
1. Chatbots:
They have penetrated every aspect of our lives. When it comes to Real Estate
they have revolutionized the selling and buying activities, chatbots have
proved itself in saving time, cost-cutting and saving additional resources.
Introduction Chatbots in websites have optimized the time spent on common
queries.
2. Construction Automation:
Some tools have been developed to provide good quality materials at cheaper
price from suppliers. Robots have been deployed to handle materials used for
construction which cuts down the cost and triggers profit by extensive use of
AI.
3. Drones:
Another next-gen technology is drone. It has become a new medium for developers
to build houses in a cost-effective, faster and safer manner. They have been
fitted with high-resolution cameras so that inspection becomes easier and pics
can be taken at different stages.
4.Investor Analytics: An
intellectual robot can check the revenue and growth goals set by the property
investors and can also, evaluate the risk based on investor's parameters that
they can make necessary modifications for which they can meet their monetary
goals.
Real
Estate sector was traditionally functioning offline but when advancements came
and technology was embraced in this sector it led into a scalability impact in
various markets. Now technology integrates two polarised part which existed in
isolation before like search and discovery platform thriving in the country and
the fragmented brokerages, retailers. What tech does is it consolidates them
and bring them to a common platform.
So
what technology means when it comes to the Real Estate sector, the answer is it
builds affordable houses, modular homes and creates an efficient process to
build projects. Finally, the sole objective remains that how to build low-cost
houses or how you can use technology to achieve that target.
When
it comes to RERA Act, it is also very imperative for this sector by introducing
Regulatory body for grievance redressal, speedy recovery of cases which will
ease the problems of people and builders would be able to get occupancy
certificate early if they are eligible for. I think both the RERA Act and the
use of tech in the Real Estate industry is very important for the revival of
the slowing industry as it will eventually help in the growth of the economy of
our country.
NOTE: The views expressed here are
those of the author's and not necessarily represent or reflect the views of DOT
Club as a whole
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