Transforming Technologies and Real Estate Sector  

Disrupting technologies have been creating ripples in almost every sector of the economy.

There is no doubt that technology plays an integral part in economic growth if the role of technology is negated for a while from the whole procedure of supply and demand, and the entire process of the manufacturing and services sector will come to a standstill.

Real estate across the globe is among those sectors which have high stakes in technological transformation. Like any other industry or sector, the face of the real estate sector has also embraced tech evolution.

Graana.com explains transforming technologies in the real estate sector which have been influencing daily transactions. Three PropTech waves mark the evolution of technology in the real estate sector, and the situation will keep on changing depending on the incorporation of new technologies.

Crowdfunding

At a glance, if we look back at the buying and selling procedure of the property, the methods of transaction across the world have evolved unprecedentedly.

Courtesy of the variability in the technology, the observations of the real estate developers and the realtors have brought us to the fact that real estate procedures across the globe have been turned upside down owing to the technology in the last thirty years.

Against this backdrop, crowdfunding is one of the technologies that has created ripples in the real estate sector. Crowdfunding has made real estate investments more inclusive as everyone has the chance to invest in commercial real estate by using crowdfunding platforms.

The interested investors can raise money for a single commercial project through crowdfunding in contrast to the conventional real estate transactions in which only a single person is invested in a project.

Digitized Housing

Technology has also transformed the concept of housing. The purpose of houses or personal adobes is not restricted to a space meant to be used only by owners; instead, the free spaces in the homes often lend to the tenants or the visitors who have moved to a city for a short trip.

Technology has created convenience so that people can easily search for guest houses or available rooms by only surfing through various online social media platforms.

This mode is helping to create equity and generate wealth by diversifying the real estate portfolio. A foremost benefit of this medium is that people have started to market their properties for short-time rentals, which offer higher returns than long-term rentals.

Tokenisation of an Asset

This aspect is somewhat similar to crowdfunding; however, the major difference is blockchain technology, which is the most secure medium for real estate transactions.

Blockchain technology is one of the disruptive technologies in the real estate sector, and it is harnessing a new concept about the tokenization of the real estate asset. The idea of tokenization is revolutionary in the real estate sector; therefore, it requires an explanation for the basic understanding.

In Tokenisation, real estate is divided into various tokens or parts against which a definite amount is set. In the most advanced forms, the fixed amounts of the tokens can be paid in the form of a cryptocurrency; however, the fiat currency can also be used for playing the part of a real estate token.

This mode of investment is also helping real estate investors to raise money for their projects to ensure timely deliverance.

Role of GIS

Geographic Information System (GIS) is among the latest technologies that have entered real estate. A GIS system gives a spatial analysis of the land and data associated with a given region or a particular plot.

It helps to understand the geographical context meanwhile also providing a better insight into the credibility of the land. The system is making it easier to track the information pertaining to property rights, tenure information, and the legal status of a plot or land.

Technology in this role is proving useful in bringing credibility to the sector. Furthermore, this can also prove helpful and demonstrate in diminishing the malpractices from the sector. Technology can prove beneficial in resolving the issues in real estate transactions.

Cadastral Mapping

Land grabbing is among the ills of the real estate sector. It also hampers its reputation and puts people’s investments in jeopardy.

As a panacea to this, Cadastral Mapping is bringing a lot of convenience in the real estate sector, which proves to demonstrate which is becoming a new model of transparency in the real estate sector.

The technology pertains to a cadastre that contains official legal documents, ownership, dimensions, tenure, and legality of the parcel of land. This helps a government keep a track record of the land, establish its authority and increase monitoring, which can also increase the government’s tax revenue.