Transforming Indian real estate

The Indian real estate sector has undergone significant changes in recent years due to urbanisation, evolving consumer preferences and regulatory reforms. Technology has revolutionised the way we live and work, and the real estate industry is no exception.

Purchasing, investing in, or maintaining any type of asset is a tedious process. However, thanks to technological innovation, consumers can now shop for properties online and tour them virtually. Technology has become a crucial component in enhancing efficiency, transparency, and sustainability in the industry.

Technology has also proven to be a powerful driver for effective property and facilities management. By automating tasks, collecting data, and providing insights, technology can help property managers improve efficiency, enhance productivity, reduce costs, and improve asset performance.

Adopting these technologies in property and facilities management presents several benefits for the Indian real estate sector:

Efficiency and cost reduction: Technology solutions, such as automation, predictive maintenance and real-time monitoring, enable property managers to optimise resource allocation, streamline processes, and reduce operational costs. By automating routine tasks and gaining better visibility into property operations, they can improve efficiency and make data-driven decisions.

Sustainability and energy management: Increasing environmental concerns and the need for energy conservation have prompted property managers to adopt technology for better energy management. Smart sensors, energy monitoring systems and building automation help optimise energy consumption, identify inefficiencies, and implement energy-saving measures, thereby contributing to sustainability goals.

Data-driven insights: The availability of vast amounts of data and advanced analytics tools has made data-driven decision-making a priority for property managers. Technology enables the collection, integration, and analysis of data from various sources, providing valuable insights into property performance, maintenance needs, occupant behaviour and resource utilisation.

Regulatory compliance and safety: Property managers face stringent regulations and safety requirements that necessitate accurate record-keeping, compliance monitoring and emergency preparedness. Solutions like digital documentation, safety management systems and real-time monitoring help ensure compliance, mitigate risks, and enhance overall safety within properties.

Enhanced occupant experience: The focus on occupant satisfaction and comfort has become a priority for property managers. Technology-driven solutions, such as smart building controls, mobile apps for service requests, and personalised environmental settings, can improve occupant experience, engagement, emergency rescue monitoring and productivity.

Remote operations and connectivity (remote working): With technology, property managers can remotely monitor and control systems, access real-time data and collaborate with stakeholders. The rise of remote work and distributed teams have made good connectivity and remote operation capabilities essential for efficient management.

A report by JLL indicated that the property and facilities management market in India would grow at a compound annual growth rate (CAGR) of 17% from 2018 to 2023, reaching US$19.4 billion in 2023.

However, the use of technology in property and facilities management is still in its early stages, with only 9% of the market utilising tech-enabled solutions. Nevertheless, there is enormous potential for technology penetration in this field due to increasing demand for community management, visitor management and parking management in addition to smart building systems, green initiatives, integrated facilities, and property automation.

While innovations are easing and streamlining processes in property management, the space for progress is continuous.

However, the adoption of technology comes with its own set of challenges, including:

1. Lack of awareness and skills among service providers and customers and uncertainty regarding the benefits and applications of technology. Education and training programmes are needed to enhance stakeholder knowledge and proficiency.

2. High initial investment and maintenance costs deter decision-makers from adopting technology or limit its usage scope. Worse still, choices are made based on cost and not the functionality and stability of the platform.

3. Data security and privacy concerns arise from collecting, storing, processing, and sharing large volumes of data. Robust data protection measures and policies are necessary to ensure security and privacy.

4. Regulatory uncertainty and complexity due to varying laws and standards across regions or sectors. Clarity and harmonisation are required to facilitate technology adoption and compliance.

Technology has the potential to transform property management and real estate practices by enhancing operational efficiency, sustainability, occupant experience and decision-making capabilities. By embracing these advancements, our teams (property and asset managers) and real estate professionals can stay ahead of the curve and unlock new opportunities for clients and businesses.

The real estate sector needs to embrace technology as a strategic tool to improve performance and create value for stakeholders. Overcoming challenges and fostering an environment conducive to technology adoption and innovation will be key to success.