REALTY+ TECH TALK: REAL ESTATE TECH TRANSFORMATIONS
India's real estate sector has evolved significantly with rapid digitalization and technological advancements, leading to more efficient, transparent, and acces- sible transactions for all involved parties. Sarthak Seth, Chief Market- ing Officer, Tata Realty articulated, “Property technology, or PropTech, has become well-known in recent years. Fifteen years ago, few were aware of its significance. The evolution of business models is largely due to digital transformations across various industries starting from government to those of developers, intermediaries, and end customers. The initiations which the government has actually taken from digital India to Make in India, has prompted the private sector and the real estate too. PropTech's publicly available data reveals a substantial increase in the indus- try's CAGR from 10% to 20-25% between 2015 and 2025, highlight- ing its potential to serve diverse sectors.” Vivek Agarwal, Cofounder & CTO, Squareyards, added, “Almost two decades back, people were not aware of what Proptech meant. Over the years, Prop tech has evolved over three significant phases. It began with digitizing property listings, moved to solving real estate issues through companies like Prop Tiger, and today it includes B2B and B2C solutions. The tech solutions now employ data intelligence, virtual reality, and dig- ital-human interface and it still has immense potential for growth and creating highly valued companies. In pitching products to developers and CEOs of the organizations, understanding their mind-set is crucial. Embracing digital transforma- tion in real estate varies, with some being intrigued by quick solutions while others remain hesitant due to historical lagging of tech adoption.” Rahul Bansal, Co- Founder, Propacity shared his experience, “We discovered that not only tier 1 cities are interested in our proptech platform, but there was also signif- icant interest from tier 2 and tier 3 cities. Propacity offers a simplified CRM and ERP system to mid-sized developers, with additional support and industry connections. Over 70 developers from 18+ cities currently use it, and the goal is expansion in 20-30 more cities. Propacity will keep improving its solutions based on user feedback. We believe, there is an intent among the small size developers to use technology, they just need the right-fit solutions. As a tech firm, we offer consulting services to CEOs of tech companies aiming to optimize investments with a focus on guidance, concerning apartment sizing, technology implementation, and enhancing collections. To build trust, we provide a 24-48 hour trial to allow for an evaluation of our services.” Sudhanshu Kejriwal, Manag- ing Director, Keydemand, gave his company’s example, “With 17 years of experience in real es- tate, our team has collaborated with developers and corporates for their business expansion. Recognizing the mutual search for leads between suppliers and buyers, we decided to provide an online solution. Key Demand was established to connect leads with the appropriate supply, stemming from the concept that demand is pivotal. As a six-month-old company in the third wave, we have listed 6.2 million square feet of verified corporate requirements nationwide. Within the last two months, we have accomplished real estate transactions valued at approximately 100 crores, all with the help of digital tools.” Pardeep Kumar, Account Director - North & East, Intelligent Spend & Business Network, SAP India, shared how his company was aiding digital transformation, “With 51 years of experience, our com- pany has significantly influenced numerous sectors. Our systems adapt to customer preferences and support businesses in various industries, including real estate. We offer a diverse portfolio of 1,60,000 products tailored to each country's needs, such as India's Invoice Regis- tration Portal. SAP's comprehensive solutions enable efficient opera- tions and address both immediate and long-term goals for investors, suppliers, clients, staff, and stakeholders.” Atul Monga, Founder & CEO, BASIC Home Loan, stated that his company took tech initiatives during the pandemic, realizing the need for affordable housing resulting from individuals relocating to their hometowns. “We specialize in facilitating accessible home loans, targeting the affordable housing market. Our approach fosters an ecosystem connecting customers, builders, agents, and bankers to provide optimal home loan op- tions effectively. Our platform assures successful loan applications through accurate bank matching, even offering to cover the first EMI if not successful. Additionally, we have expanded into the afford- able housing lending sector and enhanced mortgage penetration in India by focusing on tier-2 and tier-3 cities.” ROLE OF INTERMEDIARIES FinTech and PropTech, have come to be closely related and have evolved together within the real estate space, with intermediar- ies playing a crucial role in the digital ecosystem of the sector. Sharing his opinion on the evolving role of intermediaries in real estate, Vivek Agarwal said, “In the last decade, there has been an increase in brokers' market share, with technology playing a significant role in the acquisition process. The transaction process has evolved with virtual rit- ual technology and streamlined negotiations. Agents are shifting from facilitators to trusted advocates using data and virtual processes. With 1,00,000 brokers registered on a free platform, the goal is to facilitate faster sales and establish a co-broking system involving smaller agents for long-term growth.” Sarthak Seth stated, “The evolving role of intermediaries has shifted from brokers to consultants, focusing on both credit and long- term relationship management with clients.” Sudhanshu Kejriwal added,“Commercial real estate intermediaries have a complex role involving site visits, technical knowledge, and process management. The end user is typically a corporation, and their level of expertise surpasses that of residential real estate. There are currently 550 brokers in 230 cities using our platform, and this growth extends to tier 3 and potentially tier 6 cities. Proper training for interme- diaries is crucial for success in the commercial real estate industry.” In discussing the B2B perspective of developers and brokers, Rahul Bansal stated, “Many brokers enter the real estate industry for social and monetary reasons, taking up consultant or advisor roles. Propacity focuses on improving lead generation and management. It also addresses the lack of lo- calized awareness in tier 2 and 3 regions.” Pradeep Kumar concurred that organizations need to adapt to changing needs for growth, focusing on finance, procurement, and stakeholder relationships. “For instance, SAP offers solutions for e-invoicing, ESG, transparency with suppliers, and adherence to regula- tions for organizations seeking sta- ble systems to manage employees, customers, and legal requirements in today's dynamic business envi- ronment.” Atul Monga articulated, “In the real estate Proptech space, growth is anticipated through a plant-like effort, with technologies enabling agents and intermediaries to im- prove customer service and enhance market penetration.” INFORMATION ASYMMETRY IS A SIGNIFICANT ISSUE IN INDIA'S REAL ESTATE MARKET. CONSUMERS FACE CHALLENGES DUE TO A LACK OF TRANSPARENT INFORMATION ABOUT PROPERTY DETAILS AND PRICING. THOUGH RERA HAS IMPROVED TRANSPARENCY FOR DEVELOPERS, THE RESALE, RENTAL, AND SECONDARY MARKETS STILL LACK ORGANIZATION AND OPENNESS. ADDRESSING THIS ISSUE REQUIRES COLLABORATION AMONG ALL STAKEHOLDERS, TECHNOLOGY INTERVENTION AND IMPLEMENTING REGULATIONS ON FORMS. FOR LONG-TERM SUCCESS, BROKERS MUST ADOPT A LONG-TERM PERSPECTIVE RATHER THAN JUST CHASING SHORT- TERM GAINS -RAHUL BANSAL TECHNOLOGY HAS HELPED US OFFER CLIENTS CONVENIENT FINANCING SOLUTIONS WHILE PROMOTING SWIFT INVENTORY SALES FOR BUILDERS AND CONNECTING BANKS WITH APPROPRIATE CUSTOMERS - ATUL MONGA THE RAPID GROWTH OF THE PROPTECH ECOSYSTEM HAS LED TO INCREASED EFFICIENCY, TRANSPARENCY, VALUABLE DATA INSIGHTS AND AN ENHANCED CONSUMER EXPERIENCE FOR DEVELOPERS - SARTHAK SETH WHILE STILL IN ITS EARLY STAGES, PROPTECH HAS IMMENSE POTENTIAL TO CONTRIBUTE SIGNIFICANTLY TO INDIA'S TRILLION- DOLLAR ECONOMY BY 2030, WITH REAL ESTATE MAKING UP 13- 14% OF THE GDP - VIVEK AGARWAL IMPLEMENTING A DIGITAL SYSTEM MAY IMPACT INTERMEDIARIES, BUT THE ESSENTIAL BLEND OF ART, SCIENCE, AND HUMAN ELEMENTS WILL STILL PERSIST WITHIN THE BUSINESS -PRADEEP KUMAR IN THE COMING CENTURY, PROPTECH WILL INEVITABLY EXPAND TO TIER 3,4, AND 5 LOCATIONS IN INDIA, AS IT IS CRUCIAL FOR THE NATION'S DEVELOPMENT- SUDHANSHU KEJRIWAL REAL ESTATE TECHNOLOGY TRENDS AI and Machine Learning for automation of back- office processes. Proptech Big Data & digitalization of property data assets. Virtual Reality for a better online search & home- buying experience. Internet of Things (IoT) for predictive maintenance. ClimateTech and Tech for sustainability.
Tags : Sudhanshu Kejriwal Keydemand Rahul Bansal Atul Monga BASIC Home Loan Pardeep Kumar SAP India Vivek Agarwal Squareyards Sarthak Seth Tata Realty