What is PROPTECH?
Proptech is digitally transforming real estate through its innovative use in #commercial, #residential and #industrial sectors. These changes are occurring in the ecosystem through its shorterm benefits and long run asset building with in the industry.
Real Estate Brokerage Industry is always been an attractive business model for individuals and aspiring entrepreneurs with good communication and people skills. The total market size of the brokerage industry is approx #10400 Crore in India out of which 70% is contributed by Residential Real Estate sales. Currently there are approx #40000 Rera Registered Agents in India expected to reach over 1 lakh by 2022. This includes big Corporate brokerage houses , Banks and Financial Institutions , Developers inhouse Sales , Consultancy firms and Freelancers. But as after the pandemic and lockdown consumer buying behaviour has changing rapidly and technology playing a big role in all aspects of day to day life of everybody, it is impacting the Real Estate buying experience too.
We have done loads of research on how Proptech Startups are burning cash to disrupt the Real Estate Brokerage Industry and what are threats to the offline Industry. In total 26000 Crore is been invested in Proptech between 2010-2020 to disrupt the real estate sales cycle and buying funnel. Hence below are the few trends which can be a big threat and disrupt the Real Estate Brokerage businesses in India.
1) AI and Data Science – As 5G is about to make his initial footprints in India soon , #Artificial Intelligence and #Data Processing will impact the buying experience immensely. As currently a Home Buyers do 8-10 physical site visits before taking buying decision but after big data processing and #argumentedrealty a home buyer will likely narrow down 1-2 projects with the help of immense data available at the comfort from his home instead collecting information by physical site visits or by an expert agent. This will affect the need for an agent in initial RnD.
2)Blockchain- it’s already in buzz from sometimes in form of #Crypto Currency such as #Bitcoin and current jump in Bitcoin pricing helping the tech gaining more popularity and trust. This tech is basically used to store important data securely such as agreements , Registration and other important information in such a manner that it cannot be change or mishandled by anyone. Hence even Government also started recording all the real estate transaction and storing data via Blockchain. This will remove the assistance of Paper work due diligence and other critical jobs on which buyers rely on Agents and consultants till now.
3)IOT- You must have heard of Internet of everything but haven’t been sure how it’s apply to to the real estate market , may be without realising it that you have used IOT without knowing you were participating in one of #Proptech new ways that impact the real estate industry. Every time you use your smartphone to send an email or vise versa you are using a form of #IOT communication. IOT streamlines every process known I real estate market from instant message , videos , VR etc. Each of these IOT tools will automate the real estate buying experience as a buyer and help in making buying decision more efficiently and conveniently.
Conclusion- As a non tech professional you should start evolving your business around the new age tech and build a strong long term vision in order to compete and grow with tech giants. Focus on learning , networking and adaptability. Accept the change and be the the change , look for tie ups and strategic partnership with Local real-estate businesses in your area.
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