Why Indian Real Estate Sector Needs A Technology Moonshot To Solve Age-Old Problems?

Last Updated: January 22, 2025, 18:07 IST

Technology made to target details issues can assist us attend to much of our obstacles related to supply administration, prompt distribution, and quality assurance.

Authored by Sudie Sengupta:

Cities in India ended up being cradles of technology, financial and social progression by bring in and motivating the very best and brightest from throughout the globe. Over centuries from Benaras to Delhi, Kolkata, and Mumbai– these cities drew in the starving and the enthusiastic to develop excellent structures and public organizations. Our city background, structures and public areas have actually had a marvelous practice of excellent successes. However, over the previous couple of years, city India has actually remained in the general public eye much more for the incorrect factors– air pollution, blockage and health. Must- riches such as electrical power and water, secure transport and public centers have actually stimulated stress also after residents paid a lot for their homes.

What comprises realty advancement in Indian cities has actually stopped working to provide on principles. It’s not regarding one of the most pricey homes, or grand company schools yet obtaining the essentials right where we have actually observed most failings. To resolve these issues, the choice manufacturers– whether its home builders, coordinators or city authorities– need to pick up from the declaration frequently credited to United States General Omar Bradley, “Amateurs talk approach, experts speak logistics”. Creative application of technology can offer solutions to bypass the bottlenecks and is a critical need in our resource constrained but high growth economy.

Real Estate sector has underperformed due to lack of proper systems.

Today, real estate businesses employ close to 20% of India’s workforce and influences nearly 50% of its GDP. But the sector continues to struggle with age old supply demand challenges – from land acquisition to delivery – often leaving an agonising gap between what was promised and what is delivered. The poor attention to quality, lack of accountability, and disregard of norms is a collective failure of systems – both private and government. To this mix, if one adds the friction of infrastructure delays, and a regulatory sector that is trying to catch up in the best of times – there is enough to drive away even the most determined customers.

Consequently, we are observing ever-increasing slum like developments coexisting with demand for premium “gated societies” that develop separated pockets of fundamental centers making believe to be “high-end” living. Developing such exclusivity only aggravates social disparities which is a disaster for urban harmony. To realise India’s ambition for a $20 trillion economy by 2040, this sector must make the largest contribution and requires serious reimagination using new innovative ideas.

Local demand will propel growth

Given the enormous potential and addressable demand, across commercial and residential markets, the Indian real estate sector will continue to remain one of the most attractive growth opportunities for next three decades. Just to compare the magnitude of the supply and the demand potential, per a recent study by CII and CBRE, as of June 2024, the total commercial real estate office stock in India stood at 881 million square feet.

In comparison, (CBECS estimates from 2018) the 5.9 million US commercial buildings contained a total of 97 billion square feet. A population that is four times of the US clearly has catching up to do. And, if the demographic data is an indicator, a majority of this must happen within the next two decades. Add to this the demand for housing over 120 million potential citizens moving into the cities by 2030 (that is equivalent to six new cities of the size of Mumbai). We are looking at a coordination “moonshot” that might power the following a couple of years of development not simply for India yet the worldwide economic climate. And unlike lots of various other organizations, below the need genuine estate is clear– what we require is high quality distribution.

This needs to occur with recognition that India does not have the sources of the abundant west or distribution technique ofChina Structural concerns and lawful unpredictabilities result in hold-ups, security and high quality problems that injure organizations, experts, employees and inevitably the consumers.

Industry leaders and the federal government need to establish an extraordinary degree of collaboration to recreate the marketplace environment and established governing structures to attend to obstacles.

Investment in modern technology remedies can generate the responses

Technology made to target details issues can assist us attend to much of our obstacles related to supply administration, prompt distribution, and quality assurance. In the previous years, mobile business in experience share, food distribution, grocery store retail or home solutions aided both service providers and consumers leapfrog info and framework difficulties. Smart organization adjusted western remedies distinctively to India’s obstacles and essentially modified the method we checked alternatives, picked what we required and spent for the solutions. They attained this by producing open networks of connection and cooperation.

A comparable technique for Indian realty organization can help in reducing the info void, enhance consumer experience, and assist guarantee high quality. To browse this trip modern technology will certainly give the main nerves– incorporating tasks throughout choice making layers. The structures are currently existing– a solid financial and economic system that has actually allowed electronic repayments, really deep abilities offered at an extremely cost effective cost, and a neighborhood practice of building and construction craftmanship. The difficulty will certainly remain in bringing these with each other and adjusting to the context of the consumer for each and every brand-new task.

We might remember the moments when the only resource of residential property information was our area broker. Today, the activity has actually relocated to online where we can review areas and costs. Social media is likewise energetic in playing its component generating viewpoint and nuanced info. At the exact same time, while modern technology has actually come to be essential, the human component is much more in emphasis as we require depend on when making big financial investments such as realty.

To address this intricacy, magnate require to establish what in advertising is described as “omni experience” across the online and the offline world. The change makers must take a 360-degree analysis of the customers, understand the needs, and fulfill expectations across the lifecycle of ownership. For example, buying a property is not enough.

Long-term satisfaction is when there is maintenance of the property, supporting infrastructure that improves user experience and evolves with the users’ needs. From predicting market demand to anticipating the delivery networks, from resolving process bottle necks to resolving conflicts — the determiner for success in this technology driven growth will not be size or scale but the willingness to collaborate and create partnerships. For that they should identify fit for purpose technology and then set a transition plan using the software as a foundation.

Technology must work with the ground realities – what we learned from the smart cities experiment.

Launched in 2015, the smart cities initiative sought to upgrade infrastructure, living standards, and environmental quality. But taking a hi-tech approach without acknowledging the complex issues led to underestimating the enormity of the challenges. Hopefully, we have learned valuable lessons. Post Covid, we have seen the industry evolve. There is more focus on logistics, and supply chain coordination. Advanced technologies when harnessed properly can be designed to bypass traditional hurdles by creating an entirely new ecosystem of businesses.

The challenge for leadership in India is to use more of technology to be at the forefront of innovation, enable better coordination and achieve a lofty ambition just like the United States government set its moonshot mission over 60 years ago.

(The writer is major director-real estate and work environment remedies at Accenture)