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Technology and Sustainability – The pillars of real estate’s future

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Hitesh singla

In a constantly evolving world where technology rules the roost, it is hard to imagine a future without swallowing the digital pill.

Real estate was the last one to take the bite, after realizing that to scale up and adapt to various stages of innovation, it must walk the technological path.

Real estate is the largest asset class in the world, worth more than all stocks and bonds combined. Running such a huge industry at full steam in the 21st century requires technology and innovative brilliance. 

Emerging construction trends, discerning consumer expectations and finetuning customer experience when it comes to buying real estate, fuelled the property sector’s exigency to get technology on board. Add to that the growing importance of data and the need for intelligent technology became imminent. Proptech happened and altered the economics of the real estate industry. 

It won’t be too pompous to say that the future health of real estate is at the mercy of technology. From enhancing the home search process to predicting correct property values, intelligent technology including AI, AR and Big Data will play a stellar role for consumers and real estate agents alike. 

Though things are at a beta stage at present, 10-15 years down the line these technological big names will be the fuel for real estate. Consecutive waves of innovation behind Proptech and its bright prospects in the years to come have piqued the interests of venture capitalists who are keen on investing heavily in this technological marvel. 

Looking back at 2008, a paltry $20 million was invested in Proptech. Fast forward to 2018, this figure ballooned to a whopping $10.2 billion and the numbers keep tumbling. 

One of the areas where Proptech is making great noise is sustainability. Sustainable buildings are being heralded as the future of the real estate industry. The market for sustainable buildings is gaining popularity in the construction and the leasing arenas. 

With the adoption of new technologies, the real estate industry is exercising its influence on sustainability. Reduction of resource utilization and increasing efficiency of buildings to improve the health of human societies are the key focus areas for this sector today. 

Technology today is helping real estate properties with design, material composition, safety, management and construction methodologies across both residential and commercial assets. The result? Flourishment of businesses like Airbnb and WeWork.

We are slowly entering an era where the general population recognizes the power of these ground-breaking technologies and is supporting the goal to create a sustainable future. 

In the coming years, given the unprecedented rates of urbanization and burgeoning need for efficient homes, technology and sustainability will play a pronounced part. Take one of them out of the equation and the future of real estate looks bleak. 

Technology fuelled by real estate data sets will infuse objectivity and transparency in property pricing while providing insights into every aspect of a property. 

As if on cue, all buildings in advanced economies will come with a ‘sustainability rating’ and such high-tech assessments will become the norm for the approval of real estate developments in future. Sustainability issues will have a discernible effect on property values and demand for eco-friendly properties will find a consensus among the general populace. 

ALSO READ: Mumbai Real Estate Market Remains Lucrative Despite Challenges

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1 Comment

1 Comment

  1. Ashok Jaswal

    January 10, 2020 at 5:38 pm

    There are three pillars for success of any Organization.
    #1: The Products & Services that we are marketing.
    #2: The Systems & Processes of an organization.
    #3: The People ( the Employees, The Suppliers, and various stake holders).

    The article above has beautifully described the role of technology in REAL ESTATE and more specifically for construction.

    But Real Esate in India is till long way to go for #2 & #3 Pillars. Hope the realization of the same by the developers in future too.. Waiting for the developers to come out with augmentation on these two areas also which are till date has mainly been ignored.

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