Last updated on December 9th, 2022 at 06:25 am
The Need for Disruption in The Real Estate Sector
All industries face disruptive forces. With engineering and construction being an essential contributor to global GDP and forecasted to more than double by 2020, the time for change is now. The factors affecting the real estate sector are many and make the chances of disruptive challenges very high.
The delivery, planning, and management require vision and strategy. The real estate sector companies need that their leaders can anticipate the future in a better way and make efforts to consciously adapt to new ideas depending on the ability to drive and shape future demands proactively.
Benefits and Applications Of Fintech In Real Estate
The three forms of technologies below are particularly pertinent and pervasive.
Blockchain: Facilitating Real Estate Transactions
Buyers and sellers of real estate can now see their transactions with two advantages namely transparency and security. Every purchase has more visibility, and a permanent record between parties is created without the intervention of any central regulator. The process has no chances of failure, is more secure when it involves financial transactions, and extremely useful for real estate transactions.
Augmented Reality: Viewing And Customisation
Purchasing property or renting is a time-consuming process. These applications help to increase interaction and visualisation. Both landlords and tenants save time as they do not have to be present physically and can visualise the record at the click of a button.
Artificial Intelligence: Extracting Insights From Data
Large volumes of data relating to transactions and property features can be used to determine the current and future value of a property. Another potentially useful application is that of recommendatory systems.
All the above impact the way the real estate sector can benefit from technological upgradation and reform.
Recently Funded Fintech + Real Estate Organisations
Of the many emerging startups and those who have made it like Property Tiger, the ones who were recently funded are discussed below.
99acres- The website features property listings from more than 25 Indian cities bringing together and connecting interested customers.
Housing.com- reinvented the way people in India hunt for rentals and buys or sells properties. The startup used infused technology and innovation into the business with its verified listings, maps and location descriptions, search widgets, and more.
Common Floor- simplifies property decisions to a single-stop for all real-estate solutions. Extensive search options, reviews on locality and property, verified listings and innovative management tools make it a potentially influential player in the business.
The financial benefit available as a result of successful transformation makes a good case for closing the productivity and digital gap to thrive. The relentless wave of innovation in the past decade will sweep over the real-estate sector which is ripe for disruption. Whether this impact is positive or negative depends largely on how the real estate sector will use them. These technologies though may never replace human judgment, touch, and ability to react to dynamic changes, which are all critical to the decision-making process.
References:
https://www.ey.com/gl/en/industries/real-estate/ey-real-estate-disruption-opportunities-in-a-changing-world
https://www.businesstimes.com.sg/hub-projects/property-2018-march-issue/proptech-the-emerging-disruption-in-real-estate
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