The rapidly expanding use cases of data science and big data analysis have now penetrated the Real Estate sector, an industry that is poised to touch $4,263.7 billion globally by the year 2025, as per Grandview Research. The capability to make better data driven decisions results in improved efficiency and cost savings for the entire stakeholders of the real estate industry. Some of the immense benefits of a seamless availability of data and better informed decisions for the sector include-: A data-driven approach also significantly lowers the OPEX of real estate players by enabling consistency, objective decision making, standardization & benchmarking, comparing against benchmarks for course correction, availability of insights for better informed decision making, predictive analytics etc. Even a 5 percent reduction in cost of rebars and cement can save crores of rupees in a single project. That is the power of data driven decisions. Real estate buyers face a host of choices and options when it comes to purchasing a property. This makes it difficult for realtors to understand what property will interest a particular set of customers?, how will they zero in on numerous potential clients? The answer to that is data driven decisions. While agents still dominate the industry in reaching out to end customers, data analysis tools are now precisely capturing customer sentiments and expectations. This has enabled realtors with improved targeted marketing by acquiring the customised requirements of customers. Prevailing Challenges in Indian Real Estate Sector Real Estate operations generate huge volumes of data including- The largely unorganized nature of this industry that has a few large names and a huge mass of unorganized sub contractor and labor supply industry comes as another challenge. The most common inhibitor to the data-driven approach in the real estate sector however comes as a lack of awareness regarding how technology deployment can drive breakthrough improvements in profitability, timeliness, and quality of projects. Besides lack of awareness, the availability of specialized technology products and service providers is another challenge in this industry. Also, sourcing, construction, operations, and maintenance processes in the real estate sector are full of inefficiencies, due to the largely unorganized nature of the bulk of the industry. Even the large known brands have to depend on subcontractors from the unorganized sector for some of their activities. Many of the large IT service providers who also provide services to this industry treat this as just one of the many verticals they service, and a relatively small sector in comparison with the other sectors like BFSI, Telecom, etc that they are active in. IT In Indian Real Estate Sector The Indian real estate sector is fairly new to the concept of deploying IT in its operations. It is however experiencing increasing openness, especially at a point when the industry is going through troubled times and most players are looking actively for ways to drive efficiencies in their operations. The government of India has also been very active in deploying technology for transparency and efficiency in infrastructure megaprojects, which is driving visibility for the good technology can do in the real estate sector too. In the near future, as the networking technology continues to progress, it will create increasing amounts of data in and around structures, their use, and their users, further boosting innovation and disruption in the segment. Credits:
Why India Needs Data-Driven Real Estate?
Enhanced Market Outreach
Content: Siddhi Mahatole
Infographic: Shrikant Landge
Publisher: Media Value Works
Social Media: Ravish Dhiran