Real Estate Disruption: This Is Why Conventional Brokerage Sector Should Embrace Tech-Enabled System
This is a Guest Blog by Gaurev Kapur, CEO and Managing Director, BroBazaar
Real estate brokerage businesses have proliferated in India since the government liberalized the country’s housing market. The brokerage firm serves as a hub for anyone in the real estate market, including those looking to purchase, sell, rent, or lease.
The real estate industry has a reputation for being slow to change and resistant to new ideas and methods. The conventional brokerage houses promoted themselves primarily through their in-house research teams and individualised attention to clients. In the past, real estate brokerage, like many other industries, relied on personal connections to make deals. As technology has grown in significance, this way of working is changing as well.
- The Expanding Urban Population
The need for residential and commercial building brokers is projected to rise in tandem with the economy and the expanding urban population. As more people from rural areas move to urban centres, there will be a greater need for reasonably priced housing and retail space. This creates a great chance for those in the real estate industry to boost the quality of homes, stores, and other commercial offerings.
- Growing interest in Green Buildings
The increasing population, accelerating economic growth, and rural-to-urban migration in India have caused several environmental challenges in major cities. Due to this, a growing number of individuals are increasingly interested in eco-friendly architecture. People are also becoming more aware of the materials used in construction and their impact on the environment. Green buildings are often defined as environmentally conscious and resource-efficient structures. People who buy homes today not only know about these structures, but they also look for them because of the benefits they offer.
- Policy Administration
The Indian government introduced the Housing for All initiative to establish housing facilities for slum dwellers. Under this scheme, around 20 million houses are to be built by 2022—this has given a significant growth boost to the real estate industry.
- Increased investment in Technology
The modern real estate brokerage market is expanding at a rapid rate because of the increasing investment in technology. The brokerage sector has developed a systematic approach to doing business that incorporates the use of AI. Brokerage firms may keep ahead of the competition by using cutting-edge technology that improves the customer experience. The most successful real estate agencies also make heavy use of digital marketing strategies to spread the news about their listings, whether they be for existing houses, brand-new construction, or planned projects.
- Takeover by Millennials and Gen Z
Recently, Generation Z and Millennials have surpassed older generations as the latest consumer homebuyers in the nation. The younger generation has grown up with the internet and other digital technologies, making them tech savvy. Of course, they use this eloquence in everything they do, including buying and selling real estate.
Real Estate Brokerage Industry and Technology Frontrunners
The real estate business has been slow to recognise the benefits of new technologies, but that seems to be changing. These days, we have AI, ML, XR, DLT, etc.
- Artificial Intelligence: The use of AI is rising quickly across all industries. It is currently used in several areas, including banking, healthcare, and retail, among others. Additionally, the real estate industry has adapted to the new era. With the use of algorithms and data infrastructures, real estate agents and brokers are beginning to incorporate AI into their work today. By streamlining their processes, AI has benefited the brokerage business. Since these businesses operate in a very competitive and dynamic industry, they must find a means to drastically accelerate the process. The ability to collect, analyse, and learn from a huge amount of data could make brokers more strategic and give customers a much less risky buying or selling experience.
- Blockchain: The real estate business is projected to benefit greatly from blockchain technology. Blockchain accelerates contract processing, saves time, and reduces expenses. It increases trust via enhanced transparency by using Distributed Ledger Technology (DLT). The blockchain makes information far more visible and secure than traditional ledgers that have been in use for over a century. In real estate brokerage transactions, a DLT platform allows for the storage of asset information on a ledger that is instantaneously accessible to any party anywhere on the network. Due to its high degree of openness in due diligence, DLT can remove any human mistakes. With increased use, blockchain adaption has become a top goal across businesses, with financial, intelligence, and voting protocols at the forefront. Similarly, there are several examples of adaptability in real estate. Blockchain is changing the way investments, assets, and operations are managed in the real estate industry.
- Augmented Reality and Virtual Reality: By the end of 2025, the AR and VR industries are anticipated to be worth $80 billion. The use of AR and VR by real estate brokers to conduct business is a game-changer. Previously, property advertisements with a limited number of images and descriptions left purchasers unsure until they saw the property in person. Since the pandemic, the new normal has also presented an opportunity to use cutting-edge technology like augmented reality (AR) to aid in property visualisation, enhance engagement, and most importantly, save a substantial amount of time. Using AR and VR technologies, real estate brokers may communicate with consumers worldwide. There will be no limitations while using these technologies. It helps customers to see what their future home will look like and supports them in forming an emotional connection to the property. As a consequence, transactions may be concluded more quickly than using traditional methods.
With a CAGR of 19.5 percent, the Indian real estate industry is expected to be worth $1 trillion by 2030. The use of technology by real estate agents and dealers has increased significantly. This surge demonstrates that employees in the real estate sector are working hard to understand and appreciate the value of technology. It’s now or never for real estate brokers and builders who are still unsure how to leverage technology and propel their business to new heights.