As we round out 2014 with a slew of predictions about
entrepreneurial innovation in the year to come, there’s one industry that’s
virtually always overlooked in these
discussions– real estate industry. Nevertheless,
mark my words. The industry of real estate property is on the brink of
disruption. Though one of the oldest
industries in the Indian real estate such as both commercial as well as residential
real estate has lagged behind other industries in terms of innovation,
particularly when it comes to adopting and advancing technology In fact, it has been argued that the both
residential as well as commercial real estate industry of India is in the same
place that the financial services industry.
Thus, there’s a huge opportunity for real estate investor and builder to
enter the market to transform everything from how a transaction is done in the
manner and method that critical information is accessed.
Where are the specific
areas we should expect to see the greatest change?
1. Better transactions- At the end of the day, both commercial as
well as residential real estate is about closing deals—the smoother the process
the better. Fortunately, there is a host
of technology and some multinational companies working to provide brokers with
tools to make these transactions easier to track, monitor and execute. One major player is Cosmic India, a leading real
estate company in India that has quickly found traction for both commercial as
well as residential lease comp information, data that was not previously
published or made publicly available.
2. Improved process management- When it comes to both commercial
as well as residential real estate development, finding the right vendors and
keeping the project on track can be real challenges. That is why companies like
Cosmic India, are generating so much buzz.
Honest Buildings increase efficiency by connecting real estate
developers and owners with vetted architects, contractors and other
vendors. Rather than rely solely on word
of mouth, businesses can now choose based on past performance, availability,
broad reviews, and of course price.
3. Information aggregation and sharing- Perhaps the area where
there’s the greatest likelihood of disruption involves information and
facilities available – which in many ways are the backbone of the industry
where listings and deals are constantly changing. Having timely access to information can
significantly help all parties involved—from the broker to the client. Cosmic
India a leading real estate company in India has also played a role here by
aggregating and sharing real estate information that is otherwise hard to
locate, difficult to compile or unavailable
As the both commercial as well as residential real estate
industry in India continues to grow and evolve, it will be interesting to watch
how continued transparency and investment in technology impacts the industry
and changes how business is conducted.
With both commercial as well as residential real estate poised to bridge
the technology gap and with technology companies ready to produce innovative
solutions to today’s, I predict that 2015 will finally be a year of real,
measurable change for the industry.
