The real estate sector is amongst the most fragmented industries in the country where there have been virtually no barriers to entry for anybody wanting to become a real estate developer.
The recent introduction of the Real Estate Regulatory Act (RERA) has changed some of this. The outcome of this Act is that people will require developers to set aside far more capital for each project. It will also require on-time delivery and quality as there are penalties for delays and a five-year defect liability period as well.
As the government pushes on improvement in our rankings as based on the World Bank’s Ease of Doing Business Index, the only way to break from 100 and get to 50 is to dramatically improve the ranking on the ease of dealing with construction permits, currently languishing at 181.
All these dramatic changes have redefined the rules of the game for the real estate sector.
Going forward, developers will have to rely on technology on various counts. Click To TweetThe brick and mortar real estate sector are beginning to be swamped by the wave of technology. One can say that there is a gradual digital transformation taking place in the realty sector.
Professional developers are already implementing supply chain management and ERP systems. Technology has been deployed to improve designs and efficiencies, but applications to enhance customer interface or experience are growing.
At Gera Developments, we have been investing in technology, and we have two different apps that help us in delivering a better customer experience as well as a better product.
Gera World – Our customer-facing app consists of two different phases. The first being the pre-possession phase and the second the post possession phase. During the pre-possession phase, customers have access to all their project related documents. They can schedule events such as site visits, agreement signing, and registration.
The post possession segment allows customers to raise tickets about common area maintenance and for issues covered under the five-year Gera warranty. Using this app, we have been able to reach a 97% usage ratio and reduce our first-time site inspection by 70%.
Gera Advantage – Our construction quality control app is used by our site engineers, the internal quality team as well as contractors.
Such apps impact both developers and customers in delivering not only a better product and experience, but also reduce redundancies, save time, costs and improve the overall customer engagement approach.
The number of developers using technology, however, is extremely small and there exists a strong case for technology innovation in the numerous processes that are involved in the business of real estate development.
Why do we need technology in real estate?
- It will help solve problems related to quality control
- Can streamline processes
- Can improve efficiencies
- Enable faster delivery of projects and resolution of issues
Superior technologies can help gather and provide information on smart and connected buildings, design and build homes that are economic and functional, and speed up the transactional process of granting a lease or purchasing a property.
It is yet to be seen how the Internet of Things, AI, augmented reality, and blockchain will impact the real estate sector in the years to come, but one might as well learn about them as they are some of the key predicted technology trends in the coming years.
This article is contributed by Mr. Rohit Gera, Managing Director, Gera Developments Pvt. Ltd.
The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor.
