May 2020 - The Mentor Group

What is PropTech and how it is transforming the Real Estate?

The Real Estate is undergoing through a digital transformation and this revolution has been possible only because of PropTech. In simple terms, PropTech is the digitization of the property sector including residential and commercial building models. While this is just a small part of the wider technology transformation in the real estate sector, it includes a shift in both the digital and mental aspect of the industry. At its core, PropTech brings the focus to the consumer experience as compared to the traditional location-focus property market. The fundamental question is of how a customer experiences the property and how the property developers can extract value from this data. Furthermore, the decision-making is not derived from the consumer insights but also depends upon the integration of retailer, building, location, market, etc.

What is PropTech?

It is an innovative approach to the property industry in which digitization optimizes the way people search, rent-out, buy, sell, and manage a property land/unit. Proptech technology benefits all the parties involved from developers, investors to the property management companies, especially in the commercial real estate. The technology is empowering the developers to create energy self-sufficient building structures. The commercial property architectures and integration of modern technology help to improve the air quality by encouraging electric equipment to reduce emissions. Along with this, the digitalization has proved a boon to the property agents and consumers as it helps in crime prevention and security. The technology helps combat fraud and money laundering and also has strict identity checks.

Transforming Real Estate:

The companies which are using are creating PropTech are utilizing the innovative cutting-edge technology in their processes. These technologies allow the businesses to improve efficiency in the property industry, to make the leasing process better and data insights to create a customer experience. Major markets have been disrupted by technology like AirBnB, Uber, Opendoor etc. The Proptech focuses to bring similar disruption in the real estate industry. To offer streamlined efficiency, simpler processes, and better consumer experience is few of the changes witnessed in the property market. Also, not just limited to the above the technology in real estate has brought Affordability, Automation in processes, more Flexibility and high-end secure transactions, etc.

The builders have started to invest in modern equipment, marketing tools and taking the best use of technology.

Following are 2 major trending technology interventions –

Property Development Software – this helps to connect and centralize all aspects of the real estate project. This adds tremendous value to the property development companies. All the paperwork, progress, and collaboration of teams help greatly in speeding up project delivery.

Augmented Reality (AR) and Virtual Reality (VR) – this provides the power to visually display a new property to the end-users without actually visiting the property location. Its integration with sales tools has offered reduced risks and more efficiency in the development phases.

The PropTech companies are committed to bringing change for the betterment of the real estate industry. The real estate professionals are upgrading themselves with the technology and integrating their projects with it.

Technology Advancements & Innovations

Technology Advancements & Innovations in Real Estate

The Real Estate industry has witnessed some major breakthroughs with the introduction of new technological innovations. Technology intervention into real estate is not a new thing, the manufacturing and automobile industry innovations have been very well adapted in the property construction, maintenance and for other related developments. Since the last few years, a multitude of technological advancements has been made into the Indian real estate and infrastructure sectors.

Technology Advancements & Innovations

The mobile applications and property developer/agent online presence has become more popular and has helped to reshape the future of the industry. Especially, for the commercial sector (which has always been considered as old-fashioned) is expanding and utilizing technology and trends to promote business. PropTech and ConTech are trending terms related to modern technology in the property sector. Let’s look into some modern advancements which are here to stay at least for the next decade.

Collaboration with Digital Marketing

Digital experts are the first one to notice the wave of technology around the globe. Also, they themselves have to adapt to the ever-changing marketing platform. Real Estate today is not just dependent upon agents or newspaper advertisements. The techniques and technologies have increased the opportunities for developers to directly engage with investors. Alongside, the property agents are also utilizing digital platforms to reach a wider audience available on the internet. Location-based searched helps the property developers to understand the trends and demand of the investors. The commercial hubs today are very much dependent upon the digital platforms for their promotion, to increase footfall and to find more clients.

Virtual Reality

VR technology has drastically changed the outlook of the real estate market. In today times, when people do not have time to visit the property can utilize the Virtual Reality to remote view the site and have a real-time tour of it. This has increased the efficiency of property marketing. Augmented Reality along with VR has made it possible for the customer to save time and research (legal documentation, support, security etc) over the property in detail. The introduction of mobile applications and web apps have brought everything in the mobile device of the buyer.

Artificial Intelligence

This technology is erupting all the spheres of life and real estate is one industry which has benefited a lot from it. The complex algorithms have helped both customers and realty developers to customize and maximize income potential. The most powerful factor of AI is its amazing power to give a recommendation based on our searches. The real estate websites and mobile applications utilize this technology to provide personalized and relevant recommendations to the buyers. Also, the property management applications and tools use Artificial Intelligence to monitor vital metrics and predict the trends in property prices, maintenance, security and etc.

More innovations are being made to reduce the possibility of fraud and to verify quality of construction. Few consider Blockchain technology can help to create smart contracts, strengthen the security and reduce chances of frauds. But who knows, what is stored in the future and which technology would help achieve this. One thing is for sure, that real estate is now ready to adapt and work together with the technology.

What is RERA and How it will Protect you

What is RERA and How it will Protect you?

The Real Estate Regulatory Authority (RERA) Act was launched in May 2017 to safeguard the interests of both property owners and the investors. It is a regulatory body which effectively addresses the issues related to properties like delivery delays, pricing, title, grievances, quality of construction and etc. It creates a mechanism to provide fair, efficient, quick and transparent resolutions. This act has established a mechanism for speedy dispute redressals along with protecting the interests of the buyers.

Every state and union territory has to maintain a separate cabinet for the real estate sectors where the realty builders will register and update their projects. This is a compulsory action to be taken for all residential and commercial real estate projects whether they are new or on-going. The land coverage of over 500 sq.m or eight apartments is the minimum criteria set by the regulatory authorities.

What is RERA and How it will Protect you

As a buyer, how will RERA protect you?

RERA is a central law, but the responsibility of implementation and maintaining is with the state governments. The state-specific Regulatory Authority (RA) will create regulations and rules as per the RERA Act for their respective locations. Below is a list of several provisions in the act to protect the rights of the buyers.

Project Transparency – Authenticity and clarity in project execution and marketing are regulated by the RERA act. It is mandatory for all commercial and residential realty project developers to register with RERA in order to launch a project. This also includes the promoter to submit all legal affidavits with a written declaration. All information about the project along with the estimated timelines or phases is mentioned in them. The buyer should always go for projects which a unique registration number from RERA.

Project updates to the Authority – The project builders would have to upload details on a quarterly basis related to number and types of units sold out, any government approvals or pending checklist along with a schedule of completion.  This also includes the submission of sales agreement done between both the parties. Any variation from the committed delivery date (date of possession), would penalize the developer.  As a buyer, you can check online everything about the project on the RERA website.

Protect Buyers Money – The builders will now be required to create and maintain a separate “escrow account” in which they will have to transfer and deposit 70% of the amount received from the investor in a scheduled bank. This protects the buyer’s investment to be efficiently utilized and spent on the specific project. Any withdrawal from this account could only be done after the approvals from engineer, architect, chartered accountant and the extent of completion of the project.

Protect Buyer rights – The act makes it a legal offence if any builder is non-compliant to the regulations of the RERA act. For any unlawful activity, the builder can even lose the registration of the project. For any delays in the delivery, compensation needs to be given to the buyers as decided by the Regulatory Authority. The act also states both imprisonment and penalty in cases of counterfeit.

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