Technology has disrupted every sector, with commercial real estate being no exception. It is an enabler to increasing efficiency and improving productivity while reducing costs in the long run. The proliferation of proptech (property technology) in the form of automated services, access control systems, and smart devices holds great promise to disrupt the sector. Here are the top technologies disrupting commercial real estate:
Artificial Intelligence: Artificial Intelligence has proved to be a game-changer for commercial real estate. Humungous data generated by the proptech industry can be collated, sorted and analysed to generate valuable insights for the business. AI has also enhanced the customer experience. It has fundamentally altered real estate transactions by making personalised recommendations based on purchase behaviour, browsing history, etc. AI- enabled chatbots allow 24×7 access for resolving customer queries and even managing building operations. By automating certain manual tasks, AI has boosted efficiency for businesses and improved employee productivity.
Virtual Reality: Property tours are a prerequisite for commercial real estate deals. Clients generally prefer to see the available property before leasing to assess if it suits their requirements. However, some clients are also scattered across geographies, which might not make in-person tours feasible. Virtual Reality-enabled tours are a valuable tool in such cases. Mere high-resolution photographs and videos might not give a clear picture of the property. Virtual reality tours allow a 3D walkthrough of the entire property and reduce the requirement of additional staff for client tours.
Cleantech: Cleantech refers to a suite of eco-friendly and energy-efficient technologies that help mitigate the carbon footprints of the building. Adopting cleantech is a testament to businesses’ commitment to reducing their adverse impact on the environment. For instance, automated HVAC systems monitor heating and cooling levels to reduce overall energy consumption. Similarly, battery-saving energy systems are potent solutions to ensure reliable electricity supply and reduce dependence on the grid. For example, office experience and managed campus platform Smartworks has invested in a captive solar power plant which will cater to electricity requirements for its campuses in Karnataka.
Construction Management System: Construction management software helps manage the planning, scheduling, resources, contracts, budgets, and execution of construction projects. The data generated from such systems optimises decision-making, resources, and profitability throughout the entire project lifecycle- from the pre-bid to the handover stage. Smartworks leverages several technologies for developing design and tracking various office fit-out processes to ensure the timely delivery of projects.
Internet of Things: The Internet of Things refers to a network of ‘things’ consisting of software, sensors, and devices, among other mechanisms, to exchange information with other devices. Once connected to the cloud, these devices can generate useful insights based on data gathered from various sources. This data can be about the health of infrastructure, HVAC efficiency, workplace flow, etc. Sources of IoT include smoke detectors, air quality monitors, smart locks, etc. Harsh Binani led Smartworks, aleading workspace provider also provide IoT enabaled meeting room and work station in their workspace.
Metaverse: The metaverse has opened a gamut of opportunities for the real estate industry. While much of real estate in the metaverse is fantasy, some platforms are virtual versions of real estate. With many investors purchasing land in Decentraland, a metaverse platform, the trend indicates that the metaverse is here to stay and will radically alter the way businesses attract customers.
Blockchain: Commercial realty players increasingly recognise the power of blockchain technology in optimising property transactions, streamlining payments and enabling access to real estate investment opportunities. Ethereum blockchain, in particular, is a viable solution to realise various benefits in real estate, such as reduced costs through automation, process efficiency, real estate tokenisation, access to secondary market opportunities, etc. Hence, blockchain technology holds immense potential to drastically transform the processing of securities, liability management, document processing, and accounting processes in commercial real estate.
In addition to these technologies, several niche technologies, such as real estate marketplaces, real estate management software, big data analytics, crowdfunding platforms, IoT automation, and drones, are significantly transforming the customer experience in real estate.