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How Does Technology Impacts Real Estate Industry? – Guide
Countless businesses and models have been disrupted by technology, and the outage rate is increasing exponentially. The current pandemic has exacerbated this phenomenon, as any disruption often occurs slowly over time as people become more familiar with the technology. New realities force the workforce to embrace new technology and quickly iterate and adapt to it to appear productive. Technology is moving fast and shaping the future of the housing market, and our management of the pandemic is fueling the mass adoption of many new technologies. Raising awareness and thinking ahead will be vital in strategizing and addressing certain aspects of the ever-evolving real estate environment.
Real estate has historically remained stable as an asset class and many believe it is immune to the rapid adoption of new technologies. This thought process will create the thrill of reducing risk, but I advise you to consider how technology is affecting your real estate investment opportunities. Of course, all real estate asset classes will be affected differently, and asset classes such as apartment buildings are more isolated due to their defensive nature and the fact that housing is a basic necessity.
These effects have been most evident since March 2019, when the world was mired in the worst recession ever as a result of COVID-19. The real estate sector is one of the most prosperous in the country, contributing nearly 7% of the country’s gross domestic product (GDP).
How technology is influencing the real estate industry
Emergence of online real estate services
Before the technological boom, real estate transactions have always depended on physical meetings between the broker/agent and potential buyers, where buyers would spend hours sitting in the realtor’s office, listing preferred properties based on their budget, location and other criteria. Then the buyer would spend days on the roads visiting these properties. In short, buying a home it was nothing but a monotonous task.
Undoubtedly, with the advent of technological advances, a new breed of technology-savvy, well-educated, and well-connected agents and buyers have emerged, who have changed the outlook on real estate at home and abroad. Now the list of properties that fit the buyer’s preferences is just a click away. India witnessed the scenario up of several start-ups that provide online real estate services, some of which are:
fundraising
Acquisition of funds for purchase homes for potential buyers it used to be a tedious journey, but today, due to advances in technology, it has become a hassle-free exercise. Now potential property buyers can apply for home online loans at various banks and lending institutions by entering your CIBIL score. The CIBIL score is a parameter that indicates how good the person has been in terms of repaying past loans, the person’s financial standing to repay the loan, and how good the person is in their investment choices. Most banks check the CIBIL score and, if satisfied, immediately sanction the home loan. This process now takes no more than 10 days.
construction technology
Let’s first understand what construction technology is. Construction technology is the collection of innovative tools, construction management software, modern construction equipment and machinery, etc. used during the construction of a project that allows advancement in the field of construction. Technology has made the construction industry more efficient, productive and collaborative. Some examples are:
Marketing strategies
Before technological advances, the marketing techniques adopted by developers to publicize their company and advertise their ongoing, completed or future projects used to be through billboards, flyers, newspaper advertisements, word of mouth and other traditional marketing techniques. However, in this technology-driven era, there is a wide range of marketing tools that a realtor can use to create their brand value and market their properties. Some of the technology-based marketing platforms that realtors can use to communicate with buyers and sellers are mentioned below:
Intelligent home technology
Technological advances have a positive influence on improving people’s livelihoods and have also considerably affected the housing sector. Home automated services assess property, providing monetary and other benefits. If the house is equipped with home automated services and devices, the resale value of the property is increased multiple. The other benefits are in the form of comfort and improved care for the elderly due to smart home technology that automates household tasks.
Intelligent-home technologies include home security cameras, smart thermostats, smart locks, smart lighting, sensors, monitors, remote control mechanism home appliances and devices to automatically control the operation of various appliances such as TVs, refrigerators, washing machines, air conditioners, automatic garage doors, smart curtains, smart glass windows and more. As technology continues to evolve, the demand for homes it will only increase due to the convenience and comfort it offers.
Final note
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