HOW START-UPS ARE REVOLUTIONIZING REAL ESTATE MARKET
There are now a many start-ups that are consistently introducing new technologies and systems to eliminate the redundancies in the real estate, building and construction. An avid marketer and real estate professional Vyoma Pandit, Co-Founder, Flow Realty India with over 13 years in real estate across companies like Lodha, Brigade, Shriram has been using disruptive marketing strategies and new-age tech to create case studies in real estate turn-around. She was of the view that there is a crucial necessity to upgrade the construction, management & transaction systems in Indian real estate and these need to percolate to small cities and as well. Elucidating on his journey of launching various successful start-ups, Amit Bansal, Co-Founder & CEO, 91Squarefeet stated, “In 2015, I co-founded Quifers.com – a logistics automation platform that creates route optimisation algorithms for manufacturing companies to reduce their cost of transportation. In 2019, 91Squarefeet.com was launched which is a platform that helps offline retailers scale faster by providing property identification, store design, development, and maintenance services under one roof. Another start-up introduced in 2020, Yodaapp.ai is a peer-to-peer learning platform where people learn via exchanging Infographics. Recounting his journey, Sanjay Mendiratta, Founder & CEO, HeatCure shared, “Irrespective of my experience in banking, telecom, and media, once I discovered a heat-blocking nanotech solution, I decided to launch it in 2018, Heat Cure, a nanotechnology glass coating firm that provides a solution to heat-related difficulties. With an exclusive patent for Japanese nanotechnology, Heat Cure creates a transparent and hard barrier over glass surfaces, blocking up to 85% of infrared radiation and 99% of UV rays, significantly lowering heat gain by 45%. This innovative and energy-efficient technique meets the growing need for sustainable solutions for buildings." Discussing the thought process behind his vacation homes start-up, Saurabh Vohara, Founder & CEO, ALYF said, “Having been part of the real estate for over 14 years, I realized the gap in the holiday homes segment and that led to the launch of Alyf India's first technology-enabled marketplace. The company is trying to democratize owning a holiday home in India with a unique model that involves partial ownership of a property which makes holiday home ownership commercially accessible, enjoyable and hassle-free for one and all. In simpler terms, you can invest a relatively small sum and become a part owner of a property. For instance, you want to own a holiday home in Goa. You can become a part owner along with up to seven other owners to enjoy up to 44 days of vacation in a year.” Sharing his insights on the current state of property management, Sunny Garg, Co-Founder & CEO, CRIB began his entrepreneurial journey while studying at the Indian School of Business, Hyderabad, with YourShell, a student accommodation start-up, that was later acquired by Stanza Living. “With Crib, we are creating a seamless and stress-free living experience for tenants by offering well- designed, fully furnished homes and personalised services across India. The company aims to introduce innovative technology to homeowners& renting businesses, eliminating manual tasks and streamlining the operations.” Shiv Parekh, Founder and CEO, hBits launched his fractional ownership platform in 2019 that democratizes access to real estate for everyday investors. “The start-up uses a unique blend of real estate, finance and technology to enable retail investors to invest in Grade A commercial properties with a foreseeable exit strategy.” TECHNOLOGY A BIG LEVELLER In the last 7-8 years, Indian Proptech has advanced from basic AR/ VR to construction automation, service-based solutions like apartment management and fractional investment platforms. These avenues are gaining popularity and funding from various real estate sources. Comparing the current state of mature real estate markets like the Middle East, US, or China, and sharing his perspective on what India needs in this sector, Shiv Parekh articulated, “India's prop tech industry has evolved in the last 7-8 years, overcoming initial challenges and becoming more professional and efficient. The market now embraces new areas like fractional ownership, and with the introduction of REITs in 2019, consumers have more investment options as the economy matures. This showcases the industry's positive transformation.” Vyoma Pandit added, “The US excels in secondary property sales, while, Indian buyers focus on primary properties. Indian realty lacks proper valuation and secondary sales system. Adopting mature market strategies could potentially transform India's real estate.” Amit Bansal stated, “In the construction sector, with technology adoption, both large and small projects benefit. Construction ERP systems are gaining traction. As niche construction solutions succeed in Western countries, India may follow suit. The future of tech-based construction practices is promising.” Discussing the ongoing disruption in real estate, specifically in materials and construction technology, and sharing his predictions for the next 3-5 years, Sanjay Mendiratta said, “Nanotech plays a vital role in our product and construction, offering innovative solutions like sealants and anti-graffiti paints to save energy and cut maintenance costs. India's 2030 carbon neutrality goal calls for greener GRIHA-certified buildings, benefiting the environment and long-term building care for which new building systems and products are required.” Sharing his insights on the potential disruptions in India's real estate market related to the rent vs. buy dilemma and the GenZ trends, Sunny Garg stated, “Young people generally prefer renting for financial prudence, but opinions may shift with age and financial stability. The importance of a permanent home becomes more evident during middle age with stable careers and raising children. Many former renters now opt to buy homes on EMIs, as rent in cities like Bangalore and Bombay can hardly cover down payments and mortgage payments. Co-living has transformed housing, making it simpler and more convenient for those looking to stay on rent. The hassles of long leases, furniture, and housekeeping are gone. Simply move into a co-living space and start enjoying it. This reflects a Western culture trend where property ownership matters less”. Sharing possible ways to make real estate more appealing to younger investors, Saurabh Vohra stated, “Before COVID-19, rentals appealed to 30-45-year-olds, with property purchases occurring later in life. However, after pandemic, offices and population influx caused a rental shortage, raising prices and pushing 35-45-year-olds toward property investment despite higher loan rates. Developers now focus on larger apartments and remote workspaces as buyer behaviour has changed creating increased demand for residential and commercial properties.” Rising foreign investment in Indian start-ups have altered the Proptech scene, though we have just scratched the surface and there is a whole lot of potential of disruption in Indian realty eco-system. More Indians are shifting towards investing in real estate that is further enhancing the need for tech platforms to simplify the processes and create more alternate asset classes for investments. The growing demand of ESG and green buildings from occupiers is driving the start-up revolution in the construction sector to provide cost-effective innovative solutions. India hosts a significant potential for fractional investment focused on commercial real estate. However, challenges persist due to illiquidity, scarce REIT listings and awareness. Vyoma Pandit A solid exit strategy is essential for investments. Choosing the right property is vital. Effective exit strategies need affordable entry, expert teams, and backup funds. High investor rates and SEBI rules boost liquidity for small REITs. Shiv Parekh The solutions need to tackle multiple aspects rather than a singular issues for niche customers. The solution addressing process improvement, material supply, manpower support and financial assistance helps provide cohesive technology ecosystem. Amit Bansal The current preparedness of the real estate sector to embrace newer technologies in buildings indicates maturity of the sector and growth potential for start-ups. Sanjay Mendiratta Co-living has transformed housing, making it simpler and more convenient for those looking to stay on rent. Simply move into a co-living space and start enjoying it. This reflects a Western culture trend where property ownership matters less. Sunny Garg Holiday Home fractional ownership is the new way of owning holiday homes, making it accessible for the middle class. Just like REITs in commercial real estate, it has democratized owning a holiday home. Saurabh Vohara
Tags : start-ups revolutionizing real estate market proptech transparency efficiency potential challenges segment Vyoma Pandit Co-Founder Flow Realty India Amit Bansal Co-Founder & CEO 91Squarefeet Sanjay Mendiratta Founder & CEO HeatCure Saurabh Vohara Founder & CEO ALYF Sunny Garg Co-Founder & CEO CRIB