The use of technology to solve challenges in the real estate sector is on the rise across Asia. Singapore will host a new accelerator programme for start-ups in
Disruption with Data : Real Estate 2.0
Recently I have been reading articles and blog post which are consistently interpreting the real estate startups in India as more innovative and disruptive in nature than their US Counterparts. On this note, if we dig deeper in the market economics ,the real estate industry in India has become one of the fastest growing markets; thanks to the meltdown of the US and European markets. It is expected to touch $180 billion by 2020 with a CAGR (Common Annual Growth Rate) of 11.2%, according to IBEF. Despite such convincing growth rate, there are 863.09 million square feet of unsold assets available in the market.
Source : Global Property Guide
Consequently, besides all real estate brokerage firms, which are still doing business in a traditional way, online real estate sites, likes of , , and , have jumped into the industry to make the most of it by leveraging the power of Internet and Technology.
The common features and tech associated with these portals are mostly virtual realty tools like Slice View of, TruView of , iHome introduced by , subsequently retina and 3D walk-through’s are also gamifying the entire process of property buying, selling and renting.
Does this really makes sense ??
Rather than simplifying the process in decision making, these tools mostly focuses on identifying the right properties and increasing their user engagement over their web portals. It’s little unsettling to know that real estate companies are positioning their value added virtual realty tools as means of disruption and schemes to provide better decision making assistance to consumers.
Currently all the companies dominating the Online Realty market in India are merely listing or lead generation websites. Listing or lead generation is only one part of the overall process for buying selling or renting a property. There are a number of other steps to completing any transaction. Despite catering only to a limited portion of the overall process, these portals are completely useless and incompetent. The listings provided on these portals are often fake or more importantly stale in nature. Most listings are also broker generated.
So, Where are we lagging ??
I strongly feel that our west counterparts do a better job at providing relevant information to consumers which helps them in accurate decision making. We are clearly lagging behind on data analytics when compared to the global players.
For example- Disruption by leveraging data analytics to provide more critical insights to consumers helping them to make a decision based choice on their interests.does a good job with NRI ratings and AVM and like wise is with their Z-estimates.
The Disruption !
“Brokerages with the best data ultimately make the most money.”
If Real Estate Tech 1.0 was about bringing real estate data online, then Real Estate Tech 2.0 is about equipping agents and brokers with software platforms to harness that data and run their businesses more effectively and efficiently.
Yes, we all know that the global players have better access to repository of data which enables them to drive analytics helping in closing deals through information. India, on the other hand does not have any potent database of information , which is a major challenge.
Though old companies like, and also are trying to catch up with the problem and help consumers to make decisions based on basic analytics, i still feel we can do much better.
Brokers who relied on pen and paper or static Excel spreadsheets can now access real-time information in cloud-hosted databases, and collaborate more effectively with colleagues based on a common system of record. Moreover, workflow automation software is making agents more efficient by eliminating the need for repetitive tasks that they previously did manually. Ultimately, these tools save agents time and their parent firms money, leading to leaner and more profitable businesses.
Also, analytics driven investments in technology which shortens the time(value) from vacancy to occupancy through improved data and information flow between owners and brokers will surely make a huge impact and expedite the current transaction process.
Coming back to real estate 2.0, we at , believe that winning product solution in real estate sector depends on where technology can add the most value by improving information flows and automating tasks. Currently, following a technology, people and process-driven approach, we bring in a basket of services that includes understanding what kind of home an individual needs with the help of property experts and data science, helping our customers make the right choice. Users can also get unbiased property advice while buying a property. It also offers a property management vertical for owners and tenants on the rental side. Cross-leveraging our rental and buy verticals, we are trying to build an information system which is driven by data and trust among our customers.
Disruption with data, One Step at a time.
Following the vision to create exceptional service for real estate customers, we have also launched .
(Why Mobile ?) Well, 40% of property searches in India are done on mobile, 4x more than last year.
Source : Tech In Asia
Source : Tech In Asia
Not so far in future : Real Estate 3.0
Integrating data analytics in our platforms giving owners and property managers greater transparency into the performance of their portfolio properties , both on an overall basis and at the level of an individual asset. By identifying which buildings in a portfolio are having difficulty maintaining target occupancy rates and drilling down to address root causes, landlords and portfolio managers can improve profitability.
The benefits created by this latest wave of real estate tech startups will far outweigh the costs. We can expect that the future will see continued efficiency gains as information speed and accuracy pervade the real estate industry. As the real estate industry embraces all that technology has to offer, not only will real estate businesses and their agents become more efficient, but emerging startups and the venture capital firms fortunate enough to back them will share in the profits.
About the Author
I am a design and technology graduate, currently managing products at based out of Bangalore. I love to watch out for disruptive new tech products and on other days, it’s only about travel and food.