The Technology Revolution in Real Estate: How It's Shaping New Property Launches

In conversation with Charulatha, Correspondent, Homes India Magazine.Diana shares her views on about the role does technology play in meeting the changing needs of clients, particularly in the luxury real estate segment.

Diana Gomez, a real estate professional with over 15+ years of experience in the residential sector, handles various portfolios including luxury properties, HNI investment, high end rental, and mandate & retail sector. She is a Strategic thinker with capacity to run focused digital and offline campaigns and worked closely with developers to accelerate sales for new launches as well as sustenance.

Main drivers behind the rise in luxury home sales, and how do they differ from pre-COVID times.

Main drivers behind the rise in luxury home sales are:

• Need for space - with more organisations switching to WFH options, schools with online classes, need for increased living space / privacy / activity centred areas for the inhabitants.
   
• Increased affordability - due to limited scope for entertainment / shopping / travel holidays pushed by Covid restrictions & guidelines , increased saving on lifestyle expenses led to greater affordability especially among the employed upper middle class and elite .
   
• Need for in-house facilities - post lockdown, customers emerged with requirements for increased requirements from a home apart from safety & shelter, to improve quality of life within their residential habitats.
   

Technology play in meeting the changing needs of clients, particularly in the luxury real estate segment.

Technology has played a key part in facilitating customer viewings, innovative techniques of selling propagated in great part due to Covid restrictions in terms of people congregation at a site and restricted travel. Due to this, video conferences with a prospect be it local or NRI , have led to quicker conversions.

Customers can view the model apartment over a video call using WhatsApp / Zoom / Google meet at a time convenient to the client from the comfort of their home or workspace. Brochures, model plans, specifications are readily available over email or WhatsApp. Virtual reality has also developed in the sense that the customer can get the experience of a walkthrough thru various sizes of apartments without physically having a model apartment available, even varied interior options can be experienced.

Right from the availability, view from the apartment, varied floors and all other salient features to a prospect can be experienced on a live walkthrough, with the client being able to select their preferences. Gateway payment technologies have also enabled transfer of money to be facilitated smoothly .

"Inflation would surely impact the consumers spending power, as well causes increase in the pricing per sq.ft of a luxury product."

Inflation and interest rates, impact the luxury real estate market, and how should buyers and developers respond to these challenges.

Steeper interest rates impact spending capability particularly for customers who are interested in availing of home loan benefits. That being said, considering the Uber luxury markets that are primarily self-funded, the home loan rate may not have a considerable impact.

Inflation would surely impact the consumers spending power, as well causes increase in the pricing per sq.ft of a luxury product, especially due to rising cost of construction materials. This would lead to a slowdown in purchase; however, there are exceptional circumstances wherein the developer can demand any price due to location & exclusivity of the development.

"Steeper interest rates impact spending capability particularly for customers who are interested in availing of home loan benefits."

Developers are dealing with the same by giving buyers a few options such as:

• Flexi payment plans 
• Bank supported subvention schemes 
• Buy now, pay on handover options 
   

Challenges and opportunities that the real estate industry may face as it continues to adapt to evolving client preferences and market dynamics.

Challenges:

• Rising cost of land acquisition & developmental charges due to government 
• Increasing home loan interest rates 
• Evolving construction costs leading to rise per sq ft in pricing to the consumers 
• Increasing stamp duty and registration charges 

Opportunities

• Positive consumer sentiment in owning a property which is overriding most challenges 
• RERA being implemented stringently leading to customer confidence in new launches 
• Inventory hangover consistently dropping annually leading to a rise in new launches across all markets 
• Developer collaboration in terms of direct marketing models 
• Developers who have stringent adherence to process , funding & regulatory guidelines are surviving & expanding 
   

Real estate industry will continue to adapt to changing client requirements and market dynamics in the coming years, and advice for professionals looking to thrive in this evolving landscape.

The real estate market will continue to evolve with growing technological advances in terms of lead generation, with more customers searching for their home preferences online through Google SEO, Meta marketing, online portals etc. Digital search will be a key driver as all information will be available to clients over their smart phones / tech tools.

A real estate professional can thrive only by working on the principles of:

• Quickest to respond 
• Client engagement 
• Product knowledge i.e. being more aware of options for the client & understanding their requirements 
• Relevant information to be available on fingertips & ability to convey the same efficiently over a phone call / WhatsApp chat / video call