According to Zion Market Research, Indian real estate companies are increasingly adopting different technologies in the development of applications. For instance, from obtaining accurate data and insights for enhanced productivity to ensuring data safety, AI is being used in a multitude of ways. Asia-Pacific, contributing 40 percent in the global construction market, is estimated to be the fastest-growing ‘AI-in-construction’ market in 2024. The report affirms that the ‘AI-in-construction’ market was valued at USD 312 million in 2017, and is expected to reach USD 3161 million by 2024. Let’s talk more in the context of “How is India’s Real Estate Sector Adopting Different Technologies”.
Thanks to tech-enabled disruptions, there is a steady rise in investments, especially in ConTech (construction technologies) and PropTech (property technologies). The government’s vision to provide 10 million affordable houses under PMAY by 2022, along with the real estate industry’s need to be time and cost-efficient in project delivery is driving the adoption of these technologies.
Technologies revolutionizing real estate
The Indian construction sector is projected to touch USD 50,000 billion by 2022, expanding at a CAGR of 16 percent. Additionally, the GDP contribution is set to increase from 7 to 15 percent by 2030. It will also generate 75 million total jobs by 2022. Growing urbanisation and government-led infrastructure projects are driving growth in the sector.
Here are a few ways in which emerging tech is being used in the real estate space and analysis of “How is India’s Real Estate Sector Adopting Different Technologies”.
AR (Augmented Reality) is enabling property developers to see what the site/building will look like upon completion. It also allows them to make changes in the design phase before the construction begins. This enables buyers too to experience what living like in the building will be, giving them greater clarity on their decision.
Enhancing planning and design
BIM(Building Information Modeling) is helping architects, engineers and contractors collaborate in real time. This helps in reducing costs and leads to shorter timelines, making the entire development process more efficient.
Survey and security
According to an industry report, India is one of the fastest growing markets for UAVs (unmanned aerial vehicles or drones). By 2021, the Indian UAV market is expected to reach USD 885.7 million. The increased adoption of drones in the construction industry has seen a 239% growth year-over-year globally.
Drones offer a range of benefits for the construction industry. They boast high-resolution thermal cameras that aid in a host of building-specific applications. Besides, they also help in identifying energy efficiencies or temperature variations within the building.
Drones are also being integrated with BIM to give an aerial perspective, and provide cloud scanning and photography at different stages of construction. Drones are also highly cost-effective in topographic surveys, and ensure timely completion of projects. Maintenance and inspection work can be carried out safely under UAV supervision.
Most importantly, drones reduce the risk of accidents on-site. Labourers do not have to work at heights when inspecting bridges, for instance. This leads to lower incidence of hazards.
Safety at site
The use of robots in several construction activities like lifting, shifting, loading and unloading is freeing labour from risky and strenuous work. It is also playing a key role in challenging environments like mines and tunneling, where work is done in extreme weather conditions.
Besides, their use also enhances environmental sustainability. With their precision, robots significantly contribute towards reduction in carbon footprint.
Smart industrial corridors
Big data analytics from IoT sensors installed at construction sites is being used to monitor use of machines and their timely maintenance. In addition, smart solutions are also being used for real-time monitoring of energy, water, air for sustainability of resources.
Chatbots are being integrated into the websites for seamless communication with the users. From brokerages to crowdfunding platforms, companies use chatbots to improve customer experience, and reduce time spent on answering questions.
Forecasting Loan Defaults
Real estate crowdfunding platforms are making use of AI to forecast loan defaults. By envisaging defaults, the process of risk valuation is well-organized, thereby leading to profitable investments.
In real estate, use of blockchain is helping overcome fraudulent transactions, eliminating intermediaries, supporting data integrity, and making transferring, buying, and selling of real estate more convenient, transparent and safe.
The Way Forward
Businesses today are more dynamic than ever, more so in the real estate space. This leads to a rising need for technologies to scale up and adapt to various stages of evolution. Although real estate sector embraced technology a little later than other industries, it has already adopted tech solutions across different stages of the real estate life cycle. In the future, the adoption of these technologies will get more refined!