The real estate industry has witnessed a lot of changes since the onset and retreat of the global coronavirus pandemic. The most prominent one is the shift from paper-based and sheet-based processes to technology-driven processes resulting in a complete overhaul of the way real estate procedures are done. Property Technology or PropTech under real estate technology has taken the lead and has shown promising advantages to the likes of real estate developers, brokers, and businesses.
Other than that, the favorable government schemes, preferences for co-working spaces, rise in price, NRI investment, and sustainable development seems to be following in to shape the industry for the year.
This blog will take a look at each of these aspects and bring out the dynamics that define them as the real estate trends for 2022.
The Rise of Integrated PropTech Ecosystem
The entire world took refuge under the technology to run their business in the face of the pandemic, and the real estate industry was no exception to it. While the adoption came late, it brought numerous advantages when contrasted with the erstwhile calling or sheet-based processes involved in it.
Real estate digital marketing, real estate sales, CRM solutions, data analytics have come out to be successful applications of PropTech helping all the stakeholders to achieve success with their business.
Here are the factors that favored in to help rise real estate technology.
- Government Regulations – Digitalization of records and schemes in line with customers
- Digital Infrastructure – Ever growing digital world and the need to adapt to it
- Tech-savvy talent- Majority being erudite in tech world
The perfect blend of all these entities results in:
- Digital real estate marketing, search, selling, homebuying, transactions
- Virtual Reality applications for virtual site visits
- Big data and analytics for data-driven decisions
- Drone, BMI, and other technologies for efficient building design
- IoT, smart homes, smart amenities
The combination of all these applications gave rise to an Integrated Proptech Solution that helps to run processes efficiently, save costs, learn, and optimize operations, and grow business in the best way possible.
Preferences for Co-working Spaces
The ability to work remotely has been one of the core benefits that came out of the pandemic. It paved the way for a more comfortable working space with operations running 24/7. Such an advantage eradicated the burden of having a dedicated work area to operate a business. As such organizations at present seek to optimize and invest in spaces that work in favor of them.
The following are the benefits of investing in co-working spaces for businesses.
- Pay as per the set up and save money
- Run business 24/7 and 365 days without obstacles
- Offer work-life balance to customers
- Grow with other businesses sharing the same space
One significant factor to note is that the aforementioned integrated PropTech ecosystem has played a distinguished role in facilitating such easy setups.
The Rise in Pricing
The real estate residential sector saw a tremendous increase in pricing post-pandemic. Reports cite the rising demand, the rising cost of materials, real estate marketing, and infrastructural development to be the reasons behind the rising prices. They also name the cities Bengaluru, Pune, Mumbai, Kolkata, NCR, Ahmedabad, Hyderabad, and Chennai to record a growth rate from 7% to 1% respectively.
While real estate developers were reluctant at first to increase the costs, the recovering economy now possesses advantages to them as they can review their pricing policies and start increasing their profit cuts.
Government Schemes & Offers
The Union Budget 2022 brought a couple of advantages for the homebuyers and the affordable housing sector. One of the foremost was the extension of tax exemption benefit on interest on housing loans up to 1.5 lakhs. Furthermore, Rs 48,000 crores were allotted towards the construction of 80 lakh units across the country.
Governmental schemes also saw giving a boost to real estate technology as the regulation came in to digitize the land records that have been on the papers in the past.
Sustainable Development.
Sustainable Development
Another prominent trend seen this year was the inclusion of sustainable development as part of promoting a green and healthy lifestyle. Real estate developers understand that the current modern populace wants homes that are in line with a habitable future. As such, the real estate industry has seen a boost in green initiatives including EV charging spaces, efficient HVAC systems, smart homes, solar energy, water harvesting, and waste treatment, amongst others.
In Conclusion:
The real estate industry looks unrecognizable when compared to the last three years. It has gone through a lot of changes and is all set to be a technological-led industry. While the costs involved in the construction are increasing, the customization and ever-growing alternative options will result in greater benefits to the customers.
Real estate developers and brokers can stay up to date on the latest trends, real estate market & technology by following India’s best Integrated PropTech ecosystem — BeyondWalls.
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