August 13, 2020: As Indian real estate continues to survive under stress, the sector may emerge stronger from the distress if builders seek opportunity in changes in consumer behaviour amid the pandemic.
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The current pandemic will give rise to a new host of customer key performance indicators (KPIs) as they are likely to demand more safety and security, a report said. “Developers that demonstrate thoughtfully redesigned infrastructure upgrades, such as touchless surfaces, digitally enabled entry and exit, resident and guest management systems, smart homes and smart club houses, will attract buyer attention and provide differentiated value,” the report stated. Developers will have to adopt many changes to lead the real estate market.
The adoption of technology will play a key role in residential real estate sales and the builders who start building digital sales channels such as virtual house tours and online customer booking will benefit from it. “Technology can help developers to enhance efficiency with time, cost and quality across the value chain, especially in designing, planning, budgeting and executing on-site projects,” the report added.
Technology: the big differentiator
There are select digital interventions which could prove to be game changers for realty developers. BIM is one such technology. Building information modeling (BIM) uses a standardised machine-readable information model and it improves planning, design, construction, operation and maintenance of a facility. The software also includes ready made layouts, design drawings and accurate quantity measurements, the report said, adding that adoption of such technologies will help developers to safely manage the way in which people use space and utilities in their homes and common spaces.
Real estate distress EXPLAINED
Significant challenges and uncertainty such as a government-backed overhaul of its regulatory framework and taxation through the Real Estate Regulatory Authority Act (RERA), Goods and Services Tax Act (GST), PM Modi’s Demonetisation and Benami Transaction (Prohibition) Act (BTPA have played a key role in shaping the sector that has been facing headwinds for sometime now.
The ongoing crisis in the NBFC sector has been a further deterrent to the real sector as demand fell amid liquidity crunch. Coronavirus has posed as a further impediment to an already muted demand. The situation is likely to persist until economic stability is achieved and supply chains are restored. And, as can be seen, brands and builders who can fast onboard technology and digital transactions will be here to stay. Designs need to be rethought and modes of marketing need to be refurbished to suit the present context.
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