Technology redefining the real estate business models in India

V Nagarajan

Technology in Indian real estate (realty) segment is now infiltrating every aspect of real estate. In a summit organised by CII and Colliers, on Tech in Real Estate, and well attended by 600+ industry delegates across India, it is said that landlords and occupiers are focusing on technology as their core strategy.

For developers, high-performance buildings can lead to better occupier retention and lower operational costs. Studies suggest that full-scale digitisation can help the construction sector generate cost savings of 12-20 per cent annually.

“Green buildings can lead to operational cost savings of up to 37 per cent. However, it is not just more savings. Such buildings also lead to enhanced wellness of employees in the buildings.”

“Overall, the real estate sector is on the cusp of a change, with huge untapped opportunities for higher efficiency and savings. In the next five years, technology is going to be a game-changer in altering the workplace,” said Ramesh Nair, Chairman - CII Conference on Tech in Real Estate and CEO, India and Managing Director, Market Development, Asia, Colliers.

A wide range of disrupting technologies including AI, VR, IoT, and blockchain can play a pivotal role in reshaping the real estate business.

Technology has set its pace to re-imagine the core processes and business models of real estate.

Moreover, with the onset of the pandemic, technology has advanced at a faster rate as people across the globe have started adapting to the rapid change.

The report, in detail, describes how technology is making an impact in the domains of construction management, project management and portfolio management in the real estate sector.

From planning and design to construction techniques to building facilities management and property management, developers and occupiers are exploring the usage of technology across the spectrum.

They are reimagining existing processes and norms, with technology paving the way for the ‘buildings of the future.

Over the last two years, developers have been more open to integrating technology at various stages of construction. Developers have started using tools like drones, robotics, building information modeling (BIM), 3D printing, and virtual reality (VR) to improve quality, reduce the time taken for construction and elevate the efficiency of construction technologies. Further, High-performance buildings (HPB) too have evolved with the use of technology which can help achieve sustainability and reduce carbon footprints. Developers have also started using popular tools for construction.

One-stop solution: Technology is playing a pivotal role in the residential segment, by facilitating owning/renting property for end users, landlords, tenants, investors, brokers starting from the initial screening to closing a deal, seamlessly.

Technology will change the way business is conducted, provide insights to tenants on how the space can be used, and helps evaluate investments, leasing, and purchasing opportunities.

Overall, technology has gradually seeped into almost all facets of the real estate sector.

The real estate sector is continuously evolving and bringing with it greater transparency and accountability. These factors are vital in bringing in more investments into the sector and heralding it towards global standards.

My parents have expired and I am in the process of obtaining a legal certificate. There is no consensus in the family among legal heirs. Can one of the legal heirs like me, obtain the legal heir certificate? Please clarify. Aravind Subramanian, Sharjah.

Yes. Legal heir certificate can be applied by any one of the legal heirs. You should mention details such as name of the deceased, date of death and attach a copy of the death certificate obtained from the government authorities. You could also include details of the persons who were legal heirs along with their contact addresses. The tehsildar will issue the legal certificate specifying the names of all the legal heirs to the property.

I have transferred my old flat to a developer under a joint development agreement and in the process getting a new and larger flat. Can I claim capital gains exemption for this transaction with a developer? Hemant, Dubai.

Yes. You can claim exemption as exchange of old flat with a new flat to be constructed by the builder under a development agreement amounts to transfer under section 2(47) of the Income-tax Act. The acquisition of a new flat under this option also amounts to construction of a new flat. You are entitled to exemption if the new flat had been constructed within a period of three years from the date of transfer.