Real estate is the largest commodity in the world. Many of the big players are still building and upgrading their proprietary technology solutions. Others are spending a fortune with consultants for customized applications. Everyone is trying to stay afloat with the continuing waves of technological changes. Or to put it differently, technology continues to be a catalyst for change in all areas of the industry.
There’s a lot of opportunity with both residential and commercial properties to use technology in real estate. According to the National Association of Realtors, about 30% of all buyers found their home via real estate agents. However, about 51% of users have found their home online. Websites make it easy for anyone to view inventory and see what’s available, but also increase the chances of deception, reports a real estate lawyer vancouver. They can find photos and detailed descriptions of the properties, and also even tax and purchase history, school ratings, and other neighborhood info. You can try to use such online services to find tenants, but if you need a professional approach to handle your rental property, check this link right here now.
Real Estate Investment in different asset class has a clear objective of asset owner to:
- Efficiently Run Assets
- High Tenancy
- Low Operating Costs
A Combination of Digital Disruptors and new business models of Shared Business Models have opened up a big opportunity for assets owners to achieve decent capital appreciation with continued rental yield. Commercial Real Estate and Residential Real Estate both with Co-Working and Co-Living business models are offering best of tenancy options to our millennials population.
New Real Estate Life Value From One-time Property Value to Life Time Property Value
In the past, developers viewed the market from the lens of buying land, mobilizing funds, building the project and selling the properties before moving to the next project. This worked well in the past when the demand-supply was more balanced.
Demonetisation, RERA, GST have broken the backbone of the buy/sell market and have taken the spotlight from buy/sell.
Investors and Owners are taking a long term view. They are looking at getting more value from their existing Investments. They look at returns as a combination of Capital Appreciation plus Rental Yield.
They have also started looking at agencies that can manage the property and rentals so that there is more value to be got with minimum effort.
From Listing to Managed Rental Businesses
- In the first wave of Proptech companies, there were companies like Commonfloor, MagicBricks, 99 Acres, Indiaproperties, Housing that provided a listing based solution. They typically limited their role to getting the Owners, Buyers, tenant and other stakeholders under one market roof. Their business model relied on Ad Revenues and Subscription revenues.
- Then came the next wave of Proptech companies included companies like Nestaway, YourOwnROOM, Zolo, Colive, Stayabode, Coho, Stanza who provided Technology enabled managed living. This included a technology platform to search properties and then a technology to manage the lifecycle of property and tenant.
Bringing value and performance to Real Estate
Real Estate assets no more are human intervened assets, the sector attracts a high degree of attention from all league of buyers who keep looking to park their investments forever going capital appreciation and support of a rental income till they hold the assets.
Technology in Real Estate has created in-roads in the past few years it is very interesting to see how the entire value chain process on buying and renting today takes help of some great technology.
Key technology disruptors which are being used today in most of the decision making while buying or renting of any asset class are following
Visualize: Before you buy/rent an asset what if Technology can help to support your decision? Technology definitely is bringing in immense help to visualize today’s asset-based decision
- Location Analysis Tool: Understand the potential location of your investment/renting by crunching critical elements like macroeconomic data, planned area development, predicted next few years rent/property value
- Portfolio Analysis and Business Intelligence: An aggregate building, occupancy, cost, and business data across your entire portfolio. Apply analytics to measure value, make predictions, and generate useful insights on investment potential
Experience: Value appreciation in a rental/buy out modal is always an asset owner’s ambition, developers today to focus hard in delivering an experience to their buyers which makes there investment hassle free
- Smart Buildings: Introduction of new age technology like Sensors/AI to connect systems to enhance the productivity of buildings & people. Next time you won’t worry of your Energy Bills going skywards!
- Mobile Platforms: Engage people in your asset with a personalized mobile experience that brings ease and convenience to your living. These app-based platforms heavily used by renters of Co-Living model is excessively used by our millennials today!
Execute & Invest in solutions beyond Real Estate to run the asset effectively over its life cycle
- Managed Services: -Bring in a team of specialists who can execute and take responsibility for managing the asset. A specialist like YourOwnRoom in managed renting space implement SOPs, Business Process using technology. Having a robust Technology Platform is key to implementing the core business processes. This is not limited to a website or an app. Some of the key features of YourOwnRoom technology platform are
- Search & Discovery
- Property Management – Onboarding, Lifecycle Management, Offboarding, Renewals
- Tenant Management – Onboarding, Lifecycle Management, offboarding, renewals
- Interactive Dashboards for Customers
- Invoicing, Payment Integration – multi-channels, reconciliations,
- Integration with external subsystems
- Reporting & Analytics
- Property Marketing Tools:- Introduce potential tenants to real estate opportunities with augmented reality, cinematic video, drone footage, and customized 360-degree experiences.
- Community Management:- There are society-wide apps like MyGate, ApartmentAdda, Apna Complex which are getting more and more prominent to manage access controls to residents and service providers like maids, drivers, delivery boys, service providers. These apps are also used by tenants to share information, circular and have discussions.
Strategize : Explore Technology Solutions which help asset owners to transform their spaces to increase the performance of their assets
- Business Intelligence: -Bring all your data together with powerful overlays to visualize trends and deliver predictive insights against your real estate performance. Real Estate Managed Renting companies like YourOwnRoom, Nestaway, Co-Live all are excessively using the power of Machine Learning to acquire the best of properties for our millennials today.
- Internet of Things: -Smart buildings with connected devices, sensors are being used to control the Operations cost of any asset class. Asset owners take long term benefits with reduced maintenance cost on their cost over a period of time. Large Co-Living sets up have introduced Smart Solution to control the security and safety aspect of day-day living
India poised to become the leading emerging market PropTech destination
Although PropTech is a relatively new field, India is poised to become the leading emerging market PropTech destination.
As per Rebecca King, BWT, All the ingredients are here: a large and wealthy real estate sector, megacities on the rise, a growing middle class, vibrant tech hubs, and an established VC scene.
Added to this, a progressive government whose drive for transparency could favor those with disruptive technologies over legacy relationships.
For millennials, the very idea of limiting access of listings to one outlet is absurd. They aren’t satisfied with the cumbersome ways of the past. The industry is in the midst of a changing-of-the-guard and the innovations that the generation is introducing will change the way property is presented, researched, marketed, sold and how agent’s roles are bound to be redefined.
No one can stop the continuing evolution of technology and companies need to keep up with the times if they hope to stay in business.
In the past 50 years, the industry has seen more and more developments and it has led itself to this point in time where all is digital except the very property itself. As someone who’s at least interested in real estate, are you prepared for the changes that come and will come?