The post-Covid19 ‘normal’, advancements in technology, and the changing homebuyer demographic have created an undeniable impact on the real estate sector. Compelled to implement the modes of digitization and technology such as AI, AR, VR, Data, and Analytics – Big Tech has opened the door for unlocking the potential of the real estate industry. The sector is headed towards an all-inclusive tech upgradation in the form of smart homes and automation via IoT, AI, etc. The very definition of real estate has now changed and is extending beyond the purview of four walls to provide a comprehensive 360-degree experience to the end user.
The real estate market in India has seen significant private equity investment in the first half of FY23. Currently worth $200 billion, the sector is projected to reach $1 trillion and employ nearly 70 million people by 2030. The industry continues to grow and adapt to big tech, with steady post-pandemic demand and confidence in the commercial real estate sector, signaling an upsurge in economic activity, especially in sectors like residential, offices, warehousing, data centers, etc.
Tech Innovation in Flex Workspaces
The way commercial real estate is utilised will significantly change in the next few years with space management software, wireless gadgets, and new technologies being incorporated by the operators. The pandemic made distance irrelevant as more and more companies turned to remote work and hub-and-spoke styles of working. The purpose of these spaces is to enhance and streamline the working environment and make it more adaptable to its consumers. Many coworking spaces are going the extra mile by designing sustainable spaces with ample natural light, open-plan spaces, plants that improve indoor air quality, etc. In addition, a focus on health, well-being, open spaces, and smarter workplace designs will make commercial real estate propositions more appealing.
In 2021, the new supply of office spaces in India reached 28 million square feet, an increase of 75% year on year, across major cities Delhi-NCR, Mumbai, Bengaluru, Pune, Hyderabad, and Chennai. The share of leased space by flex spaces, including co-working spaces and managed offices has increased to 14% in HY2022. The market is growing, and co-working spaces are emerging as a new and promising phenomenon as organizations are seeking efficient, flexible, and legitimate office spaces.
A push towards sustainability
The changing climatic and environmental conditions are challenging now more than ever. Incessant flooding, pollution, decreasing water levels, and heat waves are just some of the challenges that need immediate attention. All companies must ensure that such actualities are taken into consideration. For this, it is essential to carry out a detailed research and chalk out clear objectives and guidelines for environment-conscious infrastructure, the use of energy-efficient systems, and policies that promote a sustainable future.
The rise of metaverse in real estate
As technology continues to develop, how we buy and sell commercial real estate develops alongside. One way that may impact the future of CRE is the metaverse, a rapidly developing digital realm that is making its way into the mainstream. The Metaverse real estate is the coming together of futurism, business foresight, technological innovation, virtual architecture, and cutting-edge research.
Augmented Reality in real estate helps tell a story about the property such as what it can become while giving an interactive tour of the property. Cloud-based AR platforms can help customize tours for clients by enhancing and overlaying the information of real-life objects. Today, a VR display is used to provide an immersive experience for customers to uniquely experience and connect with the proposed show unit, thereby eliminating the need to travel to a physical place. Virtual real estate is a rare opportunity and the metaverse will therefore be key to integrating cutting-edge technology to enhance the living experience and provide premium services.
Whilst the Metaverse is at its initial stage, it is fast driving the need for a hyper-connected digital-first transformation in virtual real estate. As the real and virtual worlds converge, the day is not far when we may be living most of our lives as avatars – working, shopping, socialising, etc. – in communal cyberspace that extends beyond the realm of the world as we know it. In India, while people have begun to invest their crypto assets in real estate, there are concerns regarding transparency, security, and regulation that may delay the adoption of the metaverse.
When blockchain meets real estate:
The adoption of Blockchain will enable seamless transactions and the creation of smart contracts in a secure, open, and intermediary-free manner. It will fully automate the documentation process, verify transactions, and real-time accounting, therefore, making it impervious to tampering. Given the highly sensitive information that real estate companies handle, a decentralized procedure will ensure a very low chance of data loss. It will also result in increased transparency and trust, enhanced brand loyalty, data management, access to information, and procedural effectiveness.
Most real estate organisations lack the adoption of all such trends that are required to compete in this agile, fast-paced, and competitive industry. In the future, the right approach to real estate can help companies overcome arising challenges and achieve corporate goals. Marrying strategy to impact requires a deep analysis of a company’s needs, as well as integration of the right technology to position themselves successfully in the future.
Views expressed above are the author’s own.
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