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Indian Real Estate
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Over the past decade and a half, there have been tremendous advancements in technology. These advancements have become an essential part of our lives. In other words, we are currently experiencing the fourth industrial revolution.
What exactly is 4th industrial revolution?
Take a look at something as small as a mobile phone. Its initial use was to connect with people on the go. But now mobile phones have been transformed into smartphones, which have become our virtual world, where we store our credit card details, emails, contacts of our friends and family, and much more. It is safe to that the lines between the physical and digital world have been blurred. It is a direct outcome of the fourth industrial revolution.
When it comes to real estate, it is essential to see how the revolution will affect the industry. Real estate companies will have to adapt to evolving settings and build their property according to the changing system.
A 2014 German-based report on real estate during the fourth industrial revolution stated that builders would have to take in several considerations while adapting. One such pointer is how a building should be smart and have the latest technology.
"One of the key prerequisites a building must have to qualify for Industry 4.0 purposes concerns the capacity for digitalization and networking of the property with all of its internal functions and elements. This means that the actual building will become intelligent to control itself and adjust to changing parameters autonomously. … Gates and doors could similarly inter-act with products, machines, and people," the report stated.
Indian's Role in the Revolution
We know that technology has taken over nearly all the industries. Most of the work has gone from manual to digital. It becomes essential for Indian real estate firms to adapt themselves to digitization and digital marketing.
There has been an ongoing debate about whether the fourth industrial revolution will result in job losses or generate new and unconventional jobs. Either way, the revolution will transform the way people work. India is a labor-intensive market. It is essential that the real estate industry taps in their skills in the digital environment. While India's 'Make in India' programme is all about giving employment to the country's labor, the 'Skill India' initiative aims to help the labor gain new skills.
There have been concerns over the revolution's effect on workers and laborers since work is increasingly becoming digitized. In 2019, India's Deputy Permanent Representative to the UN Ambassador K Nagaraj Naidu called for a "human-centered agenda" over the digital revolution's surge.
"Automation potential must be distinguished from automation adoption. While a high number of tasks might be technically automatable, the adoption of particular technologies will depend on a complex interplay of factors including the cost of labor; levels of education and skilling; legal frameworks for innovation; labor protection policies; the availability of supporting infrastructure; and the social and cultural norms that shape attitudes towards technological change and innovation," Naidu said at a plenary meeting commemorating the 100th anniversary of International Labour Organisation.
These technological advancements improve the operational efficiency of real estate moving from traditional to digitalized platforms, thus helping to stay ahead of the curve.
The real estate sector is keen on minimizing the carbon footprint through smart energy management, eco-friendly construction materials and more.
Green Structures
The industry has taken significant steps towards sustainability to promote a healthy lifestyle for inhabitants, ensuring durability and also resulting in cost savings. It offers the benefits of improved air quality, balanced temperature, solar illumination and more. As the industry is growing, the demand for eco-friendly properties is going high. Ultimately, contributing to the betterment of the environment and enhances the local landscape.
Some of the advanced technologies that is well-connected with 4IR in real estate are as follows:
- Internet of Things (IoT)
- Blockchain
- Statistical Modeling
- Cloud Solutions
- Virtual Simulation
At the time, Naidu also noted that more than 50 percent of India's population falls under the age of 25, while over 65 percent is below 35 years of age.
"These demographics have made education and decent work a highly connected and key priority," he said, adding that a comprehensive education program has been launched to improve schools' effectiveness and provide equal opportunities to all," he said at the meeting.
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At the time, Naidu also noted that more than 50 percent of India's population falls under the age of 25, while over 65 percent is below 35 years of age.
"These demographics have made education and decent work a highly connected and key priority," he said, adding that a comprehensive education program has been launched to improve schools' effectiveness and provide equal opportunities to all," he said at the meeting.
What can the Indian real estate market do in the fourth industrial revolution?
The Indian real estate market should focus on making things smoother and more comfortable for potential customers. One glance at the workspace, and you would know that no job is now confined to four walls of the office. You can work from coffee shops and lobbies of hotels as long as you have your laptop and internet connection, which is relatively easy to get. Retailers also use sensors to monitor several customers. This data helps in future planning or designing a workspace.
Intending to advance the national economy, the Indian government started a smart city project. Under this project, over 95 cities – of which six are in Karnataka – have been listed under smart cities. Such projects allow the real industry to come up with innovations leading to their growth.
Intending to advance the national economy, the Indian government started a smart city project. Under this project, over 95 cities – of which six are in Karnataka – have been listed under smart cities. Such projects allow the real industry to come up with innovations leading to their growth.
Real estate is an industry that has lots of scope for innovation. For example, Indian real estate firms can use their digital platforms to create a 3D viewing section of their projects. This will allow potential consumers to visualize houses better and make better decisions while buying their properties.
Bangalore is known as the Silicon Valley of India. The past decade has seen a surge in realty prices due to the high demand for housing in the city. The current crop of the floating population in the city has led to an increase in opting for rented homes with all amenities. City builders must keep this trend in mind and utilize it in their future projects. Digitization is the way now, and the more you go digital, the better it is for the brand.
Apart from this, data-driven real estate technology will play a vital role in the real estate industry. Data collection will help identify consumer behaviour, leading to shaping or moulding the industry according to consumers' tastes.
As with the previous three industrial revolutions, the fourth industrial revolution will bring several challenges with it. But there will also be several opportunities for growth and innovations in the Indian real estate market. With ever-changing means of communication and marketing, the real estate industry can be utilized well for a creative way for marketing.
Builders need to prepare for the disruption that the fourth industrial revolution is likely to cause. But they should, also, keep in mind that this revolution will result in transformational business benefits.
India's real estate market has been growing rapidly, with small towns now evolving in major cities. With the young and dynamic population that seeks to grow financially, the country's real estate market has scope to adapt and change itself as per the taste of their young customers. This will further the advancement of fourth industrial revolution in India through Real Estate!
Here's some information on the recent updates:
PropTech Takes Center Stage:
1. Metaverse Integration: The concept of "phygital" experiences, that blends physical and digital elements, is gaining traction. Real estate companies are experimenting with virtual tours and showrooms in the Metaverse, allowing potential buyers to view properties remotely in a realistic setting.
Since we are talking about Metaverse, it's highly recommended to read a blog related to metaverse.
2. AI-Powered Solutions: Artificial intelligence (AI) is making a big impact in property management. Predictive maintenance systems use artificial intelligence to analyze sensor data and predict equipment failures, reducing downtime and repair costs. Additionally, AI-powered chatbots are assisting tenants with questions and streamlining communication processes.
Check out our blog on AI in real estate.
3. Blockchain Revolution: While still in its early stages, blockchain technology has enormous potential for the Indian real estate market. Blockchain's potential applications in this sector include secure and transparent property transactions, fractional ownership opportunities, and improved loan processing.
Check out our blog on Blockchain in real estate.
Focus on Sustainability and Wellness:
1. Smart Building Management: Technology allows developers to create sustainable and energy-efficient buildings. Smart building systems reduce energy consumption by automating lighting, temperature control, and incorporating renewable energy sources.
2. Biophilic Design Principles: The concept of biophilia, or incorporating nature into the built environment, is gaining popularity. This translates to a greater use of natural materials, green spaces within buildings, and better ventilation for occupant comfort.
3. Wellness Amenities: Recognizing the growing importance of mental and physical well-being, developers are including amenities such as yoga studios, meditation spaces, and fitness centers in their projects to cater to a more holistic lifestyle.
Challenges and Considerations:
1. Digital Divide: Bridging the digital divide in India is essential for providing equitable access to PropTech solutions. This necessitates collaborative efforts by developers, government agencies, and technology companies to provide training and resources.
Data Security and Privacy: As real estate becomes more data-driven, strong cybersecurity measures are required to protect sensitive client information. Data privacy regulations must also evolve to keep up with the changing technological landscape.
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Early-Stage Real Estate Projects: High Risk or Smart Investment?
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Hidden Costs no one tells you about home buying
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Picture Perfect Homes: Why Real Estate Photography Matters
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Your Ultimate Guide to Making a Smart Purchase in 2025
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The Ultimate Guide to Financial Planning for Home Purchase
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NRI tips to Buy Property in India
A Guide of Different Types of Houses in India
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Sanchaya Tax 2023: Streamlined Kerala Property Tax Payments!
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REIT versus Fractional Investment
The Rise of Rental Housing in India
Will India's Real Estate Market Crash?
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All About 7/12 Extract Document
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Top Metropolitan Cities of India
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Real Estate Industry After the Second Wave
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Real Estate Investment Trusts (REITs)
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