Gulam Zia, Senior Executive Director Research Advisory, Infrastructure & Valuation, Knight Frank (India) Pvt. Ltd. setting the tone of the discussion mentioned, “Today's youth, believes in technology, making secure investments and entrepreneurship. In Proptech segment we have seen start-ups introducing innovative ideas, transforming stagnant industries and providing clients with new solutions for increased efficiency and profitability in the business of real estate. Embracing technology is crucial for success, however, many large corporations still face challenges and struggle to adapt in this changing environment.”
Speaking about the disruption brought about by technology on a macro scale, Aayush Puri, Head – Anacity, ANAROCK Group Business Services Pvt. Ltd. commented, “The Indian real estate sector has seen slow tech adoption, but recent government initiatives and post- COVID-19 consumer behavioural changes have accelerated this process. Millennials exploring fintech and proptech are driving innovation, as developers now cater to customers' digital preferences. The global proptech market is expected to soon reach $30 billion, offering significant opportunities for companies entering the fast-growing Indian market. Our app has reached 2 million residents in 600,000 homes. We have partnered with DLF, hosting their projects and ads for 30,000 apartments (60,000 users). It's a an app for DLF residents, that also facilitates lead generation with minimal effort.”
Abhishek Kiran Gupta, CEO, CRE Matrix & IndexTap said, “CRE Matrix focuses on niche markets, serving B2B and B2C clients. Our app provides essential data like rent comparisons and local property prices, making the industry more efficient. Our seven-year, data-driven strategy offers crucial market insights. In reference to the significance of data within the contemporary real estate business landscape, I present two genuine scenarios to illustrate my point. In the first case, a bank overpaid for a Powai branch rent due to lack of verifiable data points for comparisons. Misinformed decisions like this could cause financial loss. Our app uses verified data, backed by stamp duty records, to help people negotiate lower rents from landlords, resulting in significant savings. Developers previously made errors due to unreliable data.”
In a financial context, discussing whether mere data is sufficient for making sound decisions, Nihar Thanawala, Managing Director, Motilal Oswal Alternates stated “Improved data accessibility has enhanced forecasts, but accurate information is still crucial for investments. The industry now emphasizes construction and development technologies for benefits like cost savings and market competitiveness. Success relies on targeted marketing, lead conversion strategies, and monitoring metrics for better sales and operational efficiency”.
Sharing his views on the technological and principal necessities for a developer to prosper in the present real estate business environment, Parth Mehta, Founder, Chairman and Managing Director, Paradigm Realty, articulated, “Real estate is a core brick and mortar business which must integrate technology and prioritize superior products and services, such as utilizing BIM technology to reduce delivery times. Managing technical aspects, adapting to modern contexts, and following SOPs are vital in setting offerings apart from competitors. Increased consumer awareness leads to demands for quality products, driving sales velocity.”
Informing on his perspective on enhancing the efficiency of product delivery for stakeholders, Gopal Sarda, Founder and CEO, Vibe Realty Private Limited stated, “The pandemic has indeed led to changes in consumer behaviour which has led to making innovative real estate projects essential for developers. Key factors to consider include sunlight, ventilation, flexible floor plans, landscape design, and amenities. Successful market leaders will balance innovation, financial liabilities and timely delivery while adapting to consumer demands to maintain brand value to secure future business.”
IMPORTANCE OF TECHNOLOGY INTEGRATION
Speaking about the importance of technological integration for developers, Aayush Puri said, “Today's success hinges on technology as its cornerstone. Neglecting it leads to substantial lost opportunities, making it an essential element for organizations across sectors. Successful technology adoption is crucial for developers, with seamless integration into business processes being essential. Developers must adapt or risk being disrupted by early adopters and face potential industry exit due to their inability to keep up with innovations and change. To double sales, developers can collaborate with our team. Our app comprehends customer purchasing behaviour, as they interact more frequently than on other platforms. With tri-daily user access, we can precisely forecast prospective purchases.”
Abhishek Kiran Gupta gave an example of their product, “We provide five concise points to address market inquiries for market appetite, sales performance, buyer age, and income profiles. Our 15 years of data enable a statistically sound and predictive analysis to answer previously anecdotal questions. The application serves as an informative platform allowing users to access various projects within their preferred city. Upon selection, the app provides pertinent details including unit number, floor number, apartment size, competitor sales figures, and clientele.”
Stating a query as a developers, Parth Mehta questioned, “As a developer, I have two concerns: reducing acquisition costs by targeting a specific audience, and ensuring my sales team connects with potential buyers who can afford our products. Can a technology enhance conversion rates and minimize reliance on walk-ins? For now, we are collaborating with agencies to streamline post-handover procedures, reducing redundancy and resource usage. An app for issue reporting has enhanced repair coordination and post-handover experiences for all parties.”
Gopal Sarda added, “We discussed app and data usage for business expansion and land acquisition. However, we can improve by exploring client segments, sales trends, data forecasting, and obtaining feedback for quality enhancement. Addressing these gaps can boost business growth and achieve larger goals. The development process involves three stages: pre-construction, construction, and post-construction, with a focus on post-occupation maintenance and transparency. Minimizing payment pressure for clients, offering digital documentation and technical support, and excellent service are crucial. Standardization in affordable housing should allow innovation and accommodate 25% modifications for adaptability post-pandemic.”
Nihar Thanawala said, “The developer’s queries on market analysis and COVID-19's industry impacts are valid. The real estate industry lags in adopting data-driven strategies compared to other sectors. While many Proptech applications offer insights into resident preferences for improved property design, but developers primarily focus on sales data and thus property management applications remain limited to catering to building resident’s convenience.”
Elaborating on his viewpoint on need and importance of standardization within processes and technologies, Gulam Zia articulated, “The recent discussion focused on debunking standardization and addressing custom-tailored spaces for clients. The affordable housing market, which constitutes 90% of the country's housing needs, relies heavily on standardization due to its emphasis on cost efficiency."
Work has evolved since the Industrial Revolution, with a focus on efficiency as a major factor. Nowadays, access to vast data presents challenges for organizations.
Predictive analysis can be applied to property data with digitization process aiding this approach.
Residential properties offer more data and are easier to analyse than malls and commercial office spaces.
The development process involves three stages: preconstruction, construction, and post-construction, with a focus on post-occupation maintenance and transparency.
Minimizing payment pressure for clients, offering digital documentation and technical support, and excellent service are crucial today and going forward.
Misinformed leasing decision due to unreliable data in CRE can cause financial loss. A verified data of the micro market helps negotiate lower rents or sale price, resulting in significant savings. Abhishek Kiran Gupta
Today's success hinges on technology as its cornerstone. Developers must adapt or risk being disrupted by early adopters and face potential industry exit due to their inability to keep up with innovations and change. Aayush Puri
In the current landscape of data sales and user accessibility, industry has almost reached a point where data availability is no longer a concern. Yet, notwithstanding the availability of data, some prominent companies have collapsed amidst the rapidly evolving disruptive ecosystem. Gulam Zia
Despite having historical demand data and diverse project timelines, we lack latest micro market insights. To ensure success and manage risk, developers need accurate info on future micro market demands for projects possibly ending in 2026. Parth Mehta
Improved data accessibility has enhanced forecasts, but accurate information is still crucial for investments. Success relies on targeted marketing, lead conversion strategies, and monitoring metrics for better sales and operational efficiency. Nihar Thanawala
Successful market leaders will balance innovation, financial liabilities and timely delivery while adapting to consumer demands to maintain brand value to secure future business. Gopal Sarda