Impact of technology on Real Estate
Impact of technology on Real Estate
May 11, 2021
Technology has touched and transformed every aspect of human life from healthcare to manufacturing to financial services to national security. Thanks to technology we can transact with a tap on our mobile devices, doctors can provide healthcare through teleconsultation and reach the remotest corners of the world, students are getting access to global knowledge banks and topmost academicians, entertainment has gone on-demand, anywhere anytime.
The real estate and construction sector is also witnessing a fast-paced change led by technology across its value chain embracing project acquisition, project management, supply chain, construction, marketing, sales and asset management. Technology will have exponential impact on Real Estate in the decade to come as the industry is primed for this change and ready to adapt technology.
Primarily, potential for impact can be carved out in three distinct areas - The way properties are designed and constructed, the manner and form in which they are sold and leased, and the way real estate assets are managed and serviced.
Technology in Design and Construction
The Design and Engineering processes of Real Estate assets are being transformed with advent and mainstreaming of multiple technologies. Drones are proving immensely useful to survey and map, understand the Geographical Information Systems for master planning and infrastructure planning. Availability of substantial bandwidth and software tools have made collaborative efforts across the globe in ways previously undreamt off. Augmented Realty and 3D is changing the way designers and engineers are approaching and working with building design creating opportunities for better space management, value engineering in Mechanical, Engineering , Plumbing Designs and also navigating complex design issues. Software development on the Enterprise Resource Planning front is enabling efficiency in Supply Chain and Construction Management and allowing engineering firms integrate technology to maintain workforce culture and collaboration. Latest construction technologies are reducing construction cycles and timelines, upgrading quality and bringing precision to build.
Technology in Sales and Leasing
During pandemic, this segment is harnessing the new technologies to sustain sales and leasing. It is creating a paradigm shift in the way humans are viewing real estate. Technology coupled with AI will transform the process dramatically in this segment. While Real Estate developers will be able to take their Brand directly to the customer, they will also be able to broaden their reach by engaging more channel partners and affiliates to sell their product. The current one size fits all method of communication will be revolutionized to deliver tailor made communication to everyone. The buyers and lessors of properties will have a seamless experience of properties throughout the buying cycle, discovery of property, evaluation of property and purchase of property. Advanced MLS will give them visibility of properties with information available on one touch AR, VR, Drones, 3D views on integrated platforms. This will enable the buyers to understand the properties better before deciding. Blockchain, AI and ML will enable finding the real value of real estate spaces bringing in transparency.
Technology in Property Management
Asset Management will move from a passive industry to an active industry with use of Technology to enhance the value of property over time by utilizing Building Information Systems to improve experience of every use and at same time optimize the costs. Preventive maintenance has already started its accelerated movement towards predictive maintenance with the help of IOT, AI and ML. Software as a service, Knowledge as a Services, hardware as a Service is enabling property and Property management firms to provide an enhanced experience for property utilisation. A gamechanger we are witnessing is Fractionalization of Real Estate Assets with the use of Block Chain technology and will be a space to watch for.
Today on National Technology Day, we at Aurum Ventures pledge to continue to harness the power of Technology and retain its core values of Empowerment, Transparency, Speed and Passionately keeping the customer experience at forefront.