Proptech Has Sparked The Real Estate Revolution
Ram has experience spanning over 20 years in all facets of real estate like construction, investment management and banking. Prior to being the founder of Integrow Asset Management, Ram was heading the Real Estate Practice of Edelweiss Financial Services where he was the CEO of Orbit Corporation. He came up with the concept of transforming the real estate asset management market by providing knowledge, good governance, tech-enabled solutions, and value growth for all stakeholders
In a landscape where skylines are being constantly revised it is possible to miss the coming up of an absolute landmark. But before long, because of its style or size or significance to the community around, it comes to define the landscape. Altering its destiny for good.
We have seen this happen in the world of tech when the smartphone was invented. Or back when the internet was developed. We do not see these two inventions as the real-world marvels they are because they are so deeply embedded in our daily lives. So close are we to the magic that all we see is the flick of a wrist.
The next such change is coming up in India’s real estate industry and it is being driven by proptech or property technology. It is being hailed as disruptive and innovative, particularly for the Indian markets, where property investments are considered a safe haven and a great way to build leverage of all kinds.
My bet? It is going to do that and more. Rise of proptech is going to dispel the air of inscrutability that RE has enjoyed since as far back as the memory can go. That’s the greatest change we’re looking at and will change our view of RE as an asset class.
To understand why I say this, we need a flashback.
A Land of Traditions
We are an ancient culture that prospered by tilling our lands, tending to our livestock, and fighting for our territory. As a society, we have always believed that true wealth creation begins with owning a piece of land. This is why RE gets the top billing in most investment portfolios. It is hard to erase hundreds of years of shared history and rewire ourselves to feel ‘at home’ with new-age investment tactics. It is hard to do so also because it makes sense.
Real estate is among the most resilient, recession proof asset classes in the long term. The greatest upside of it yet is something every successful business person understands innately: it helps you build solid leverage. This is why new-age investment options like digital products, currencies, and more ultimately end up being a means towards the same end: acquisition of property. i.e. more leverage.
According to an industry report, Indian proptech startups attracted more than $3.2 Bn in funding across 255 deals between 2009 and 2021.
The Technology of making the most out of your Property
Proptech creates a smooth pass between the old and the new. Like the new-age property management platforms which have created truly successful niches in property rental services, stay cationing, serviced apartments, rent sharing and more. While smaller cities are slowly catching up to the benefits like low processing fees, higher transparency, no brokerage, what we’re seeing in India is still a starter pack.
The recent success of Homesfy IPO is an indicator of the huge investor interest that exists in proptech space. The steady growth of REITs retells the same story.
It says that today’s investor is open to non traditional ways of investing in what is and has always been a traditional choice. Proptech helps us with more than one way to invest in real estate and grow your capital.
It won’t be too long before the entire value chain begins internalising digital functionalities for aspects such as prospecting, under-writing, financing, due diligence, operations and maintenance, and more. This is because proptech is a goldmine of data which can be leveraged to enhance consumer value proposition as well as to problem solve for many of the bottlenecks faced on either side of the sale. It will remove the opacity cloaking real estate dealings in the long run and generate demand for transparently managed projects overall. A win-win for all parties involved.
What does Proptech means for the realtor community?
Proptech will open up multiple avenues for value creation. Properties managed this way will garner more and speedier funding, will be more efficiently and transparently managed, and will ‘appreciate’ significantly in the eyes of the market driven by these factors. Consumers today want hassle-free living and investing. Proptech will be your vehicle of delivery.
What does Proptech means for the end consumer?
Proptech has already begun creating an environment of enhanced trust and transparency, a quality most consumers crave for while looking to rent/buy or invest. It has impacted governance in the field by pushing the authorities to respond through legislation that protects the unique space that both consumers and developers occupy in this long-term equation.
What does Proptech means for the investor community?
Data from both supply and demand side will help present the true picture of the growth potential of an RE opportunity. You can factor in both utility as well as performance over a period of time. Your decisions to invest, re-invest or divest at any point will be driven by actual data points. You will be able to steer your investment in the right direction even within an RE project: for example, data might be able to tell you that rather than provide your consumers with a wider range of utilities, your project needs to deepen its offers across various categories.
At Integrow, we are seeing proptech as the platform where intelligent exchange between the end consumer, the realtor, and the investor can take place. It provides the strong ground we need to see other services take shape, such as the new wave of sharing or gig economy, managed services, flexible financing options and more. Here is where we create value for all the key stakeholders and opportunities for future growth of the market and the sector.
In a landscape where skylines are being constantly revised it is possible to miss the coming up of an absolute landmark. But before long, because of its style or size or significance to the community around, it comes to define the landscape. Altering its destiny for good.
We have seen this happen in the world of tech when the smartphone was invented. Or back when the internet was developed. We do not see these two inventions as the real-world marvels they are because they are so deeply embedded in our daily lives. So close are we to the magic that all we see is the flick of a wrist.
The next such change is coming up in India’s real estate industry and it is being driven by proptech or property technology. It is being hailed as disruptive and innovative, particularly for the Indian markets, where property investments are considered a safe haven and a great way to build leverage of all kinds.
My bet? It is going to do that and more. Rise of proptech is going to dispel the air of inscrutability that RE has enjoyed since as far back as the memory can go. That’s the greatest change we’re looking at and will change our view of RE as an asset class.
To understand why I say this, we need a flashback.
A Land of Traditions
We are an ancient culture that prospered by tilling our lands, tending to our livestock, and fighting for our territory. As a society, we have always believed that true wealth creation begins with owning a piece of land. This is why RE gets the top billing in most investment portfolios. It is hard to erase hundreds of years of shared history and rewire ourselves to feel ‘at home’ with new-age investment tactics. It is hard to do so also because it makes sense.
Real estate is among the most resilient, recession proof asset classes in the long term. The greatest upside of it yet is something every successful business person understands innately: it helps you build solid leverage. This is why new-age investment options like digital products, currencies, and more ultimately end up being a means towards the same end: acquisition of property. i.e. more leverage.
According to an industry report, Indian proptech startups attracted more than $3.2 Bn in funding across 255 deals between 2009 and 2021.
The Technology of making the most out of your Property
Proptech creates a smooth pass between the old and the new. Like the new-age property management platforms which have created truly successful niches in property rental services, stay cationing, serviced apartments, rent sharing and more. While smaller cities are slowly catching up to the benefits like low processing fees, higher transparency, no brokerage, what we’re seeing in India is still a starter pack.
The recent success of Homesfy IPO is an indicator of the huge investor interest that exists in proptech space. The steady growth of REITs retells the same story.
It says that today’s investor is open to non traditional ways of investing in what is and has always been a traditional choice. Proptech helps us with more than one way to invest in real estate and grow your capital.
It won’t be too long before the entire value chain begins internalising digital functionalities for aspects such as prospecting, under-writing, financing, due diligence, operations and maintenance, and more. This is because proptech is a goldmine of data which can be leveraged to enhance consumer value proposition as well as to problem solve for many of the bottlenecks faced on either side of the sale. It will remove the opacity cloaking real estate dealings in the long run and generate demand for transparently managed projects overall. A win-win for all parties involved.
What does Proptech means for the realtor community?
Proptech will open up multiple avenues for value creation. Properties managed this way will garner more and speedier funding, will be more efficiently and transparently managed, and will ‘appreciate’ significantly in the eyes of the market driven by these factors. Consumers today want hassle-free living and investing. Proptech will be your vehicle of delivery.
What does Proptech means for the end consumer?
Proptech has already begun creating an environment of enhanced trust and transparency, a quality most consumers crave for while looking to rent/buy or invest. It has impacted governance in the field by pushing the authorities to respond through legislation that protects the unique space that both consumers and developers occupy in this long-term equation.
What does Proptech means for the investor community?
Data from both supply and demand side will help present the true picture of the growth potential of an RE opportunity. You can factor in both utility as well as performance over a period of time. Your decisions to invest, re-invest or divest at any point will be driven by actual data points. You will be able to steer your investment in the right direction even within an RE project: for example, data might be able to tell you that rather than provide your consumers with a wider range of utilities, your project needs to deepen its offers across various categories.
At Integrow, we are seeing proptech as the platform where intelligent exchange between the end consumer, the realtor, and the investor can take place. It provides the strong ground we need to see other services take shape, such as the new wave of sharing or gig economy, managed services, flexible financing options and more. Here is where we create value for all the key stakeholders and opportunities for future growth of the market and the sector.
