Virtual reality technology lets buyers to visit dozens of properties from the comfort of their homes
The real estate market in 2022 saw dramatic shifts in demand and buying behaviour due to a combination of factors such as record low borrowing rates, government initiatives, and developers offering discounts. This unprecedented level of activity in the sector has not been seen in recent years and is expected to continue even as we approach the beginning of a new year.
Investment in luxury housing is on the rise, as it has emerged as one of the most dynamic and resilient real estate segments, having bounced back impressively from the effects of the pandemic, while remaining relatively insulated from wider market conditions.
Developers have been able to successfully anticipate consumer needs and trends in the market, creating projects imbued with an effortless and elevated lifestyle. Furthermore, branded residences have become increasingly popular due to their promises of an easy and worry-free home ownership experience. Buyers are willing to pay a premium for the turnkey, experiential lifestyle that these properties offer, driving the sector’s overall recovery.
The emphasis on streamlined processes and a convenient home ownership experience has made these branded residences a more attractive option for potential buyers.
The global pandemic has led to the rapid acceleration of digital transformation in virtually all sectors, including the real estate market. Real estate companies have been able to leverage modern technologies such as 3D tours, drone videos, and virtual staging in order to provide prospective buyers and renters with an immersive, cost-effective alternative to physically touring prospective properties.
In a traditional real estate search, buyers may spend days or weeks visiting various properties before selecting a suitable one. This process often entails considerable time and effort, as well as associated travel costs for both the buyer and their agent. Virtual reality (VR) technology offers an alternative solution, allowing buyers to visit dozens of properties from the comfort of their homes. With VR, users can view properties from every angle, get an in-depth look at the finer details, and make an informed decision on the best option for an in-person visit within an afternoon.
VR is poised to revolutionise the real estate sector. As more developers and property managers adopt this cutting-edge technology, the potential benefits are immense. For example, VR-based walkthroughs can provide a high-fidelity, immersive experience that allows users to explore properties without leaving their homes. This technology promises to increase efficiency and reduce the time and resources required to navigate the real estate world.
According to one report, aggregate rental demand (searches) increased by 29 per cent year on year, while average rent in India increased by 5.2 per cent quarter on quarter. Rent and home prices are expected to remain elevated in the coming years. Despite this, potential home buyers are undeterred, with some being willing to pay well above the asking price to ensure they get the house. Consequently, existing homeowners are also seeing their home equity increasing, as the market value rises.
Migration from cities to suburbs is having an increasingly significant impact on the real estate industry, with more people opting for a suburban lifestyle. This shift in demand from apartments in urban areas to single-family homes in the suburbs has resulted in a surge in the demand for suburban housing and a subsequent rise in suburban real estate prices across the nation. To satisfy this trend, developers and real estate companies are constructing a variety of suburban housing developments, such as town homes and multi-family homes, to meet the increased demand.
A smart house is a leading real estate technology trend now. Smart home technology has the potential to save homeowners time and money while adding value to their properties. These homes can provide homeowners with increased convenience and access to their homes, along with safety and security. Homeowners can control things such as lighting, climate, security, home theatre systems, and more with the use of a simple interface on their smartphone or tablet. Furthermore, the cost of installation and maintenance for these technologies is becoming increasingly affordable, making it feasible for nearly any homeowner to upgrade their home. As a result, smart home technology is playing an increasingly important role in the real estate sector as it gives homebuyers more value for their money.
Though not immediate, the real estate industry in India is undergoing a revolutionary transformation. Cutting-edge technology will profoundly influence the industry, while luxurious residences will have a greater impact on homebuyers than traditional rental properties. As a result, the real estate sector will face a paradigm shift in the way it does business.
(The author is Managing Director, 4S Developers)
