Digital Transformation in the Real Estate Business

Very few companies can afford to avoid Digital Transformation, in today’s world. Digital Transformation has become a dire necessity since there is a need for coping with changing market scenarios and business trends. As per Statista, by 2030, the market size of the real estate industry in India is set to reach $1 Trillion. And this is possible only through Digital Transformation. In this post, we will throw light on how digital transformation is shaping the real estate business. First, let us throw light on Digital Transformation.

What is Digital Transformation?

Digital Transformation is about using new-age digital technologies that appear in the form of up-gradation of the existing processes or introducing new ways to carry out your business activities. It helps to redefine the business processes. 3 main components are:

• Rebuild Operations
• Rebuild Relations
• Rebuild Procedures

Why Real Estate Sector Requires Digital Transformation?

Real-estate companies want to stay ahead of the competition always and needs to maximize their return on investment, by exploring new structuring option, changing portfolios, and improving operational efficiency. 

There are various reasons for which these companies want to go about digital transformation and these are:

Change the Way Customers Search 

Today, the majority of home buyers search the internet. Adopting Digital Transformation is equivalent to having a strong Digital Marketing Strategy for your business and gathering strong leads from the internet.

Meet Changes in Customer Needs

Both property sellers and buyers resort to online research before selling or buying properties. Without a strong online presence, you may miss out on many opportunities for your real-estate business. 

Adopt to the Advent of Technologies

The Real estate business model has seen a massive transformation due to the websites of real estate firms. It is through these sites that you as a buyer can access a list of homes, pictures, and virtual walk-throughs. So, the buyer can comfortably seat at his home and access all kinds of information like filtering the search, comparing prices, and many more.

Next, we come to the technology aspect of Digital Transformation in the real-estate sector. 

Key Trends in Technology

Several property-related technology companies are offering services on the following: 

AR/VR

Augmented Reality(AR) helps in Virtual tours. This technology improves customer engagement. Businesses like Singapore-based PropertyGuru uses Virtual Reality(VR) Googles to have a 3D walk-through to view various flats and condos. The buyer decides on the angle and the section from which they would prefer to look at the property.   

Process Mining 

The first thing to carry out is a proper understanding of the business processes. Process Mining is an enabling technology that helps to identify the areas for automation and improvement. 

Artificial Intelligence 

Robotic Process Automation (RPA) helps to automate manual processes like customer service, invoice processing, etc. BIg Data Analytics Solutions help to understand customer segments and predicting customer behavior which are critically important for the real-estate business. Big Data technologies can handle enormous data so they can help you to save valuable time. Finally, CRM applications also prove extremely beneficial for predicting various parameters- investments, property buying, and market conditions.

Build Information Modelling (BIM) 

BIM is a 3D model-based process that helps different professionals –  architecture, engineering, and construction (AEC). It provides tools and insights to plan, design, construct and manage buildings and infrastructure with improved efficiency. 

Blockchain

The process of purchasing, estimating, and selling real estate is fractured. But Blockchain technology helps in increasing transparency, reducing paperwork, and eradicating the involvement of several third parties. Moreover, smart contracts record contract conditions as computer code. So, there is no need for middlemen or bank verifications while using it in real estate. Blockchain helps in the following ways:

• Automates & Accelerate
• Help in making transactions accessible, 
• Track transactions 
• Reduce Cost, enhances speed, and protect against fraud through smart contracts. 

Drones 

Drones are perfect for capturing aerial images of properties. These pictures are pocket-friendly. So the advantages are:

• Accessing the difficult-to-reach areas like roof and others.
• Map the property for leasing it to commercial clients.
• Inspect buildings.
• Marketing Purposes

IoT 

Internet of Things(IoT) is connecting smart, computing devices within regular objects in use. It helps to predictively maintain the building, improve energy efficiency, and lifestyle maintenance. In the future, it will possible to download the history of maintenance from the smart devices connected to electrical lines, plumbing, etc. So, one does not have to incur the cost of costly inspections to understand better the house’s condition. The value of properties increases due to the use of IoT devices in the properties.  

Apps 

Customers are increasingly using mobile applications for their everyday tasks and that includes selling or buying properties. It is better to use apps to connect with new customers. They get to know everything related to the property from these mobile apps, while on the go. 

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Examples of Digital Transformation in the Real-estate Sector

Rooomy is a company that is using a virtual staging of properties and then digitally adds furniture, and accessories to the photos. All these improve the buying experience. 

Zillow is a proptech company that is a big name for online home seekers. It uses AI for customized search, precise evaluations and product offerings.

Zumper harnesses the power of AI to analyze renters’ behaviors for predicting the probability of a renter signing a specific apartment lease. It proactively identifies a potential renters who wants to lease immediately. This offers a personalized experience to the leasing consultants and renters. 

Conclusion 

In today’s competitive world, companies are trying to deal with business trends and changes in the market. So, real-estate companies are adopting Digital Transformation is not possible to avoid. Digital Transformation disrupts the way business was done by the real-estate sector in the past. They have started using various technology to stay ahead of competitors like AI, AR/VR, Blockchain, Drones, etc.  

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