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There is a need to establish a dedicated team for implementing technology innovations to solve business problems in the real estate sector, according to a Naredco-KPMG report released here on Monday.
The report, which was released on the 15th national convention of NAREDCO-Housing for all 2022 “Real Estate Inflection point: Readying for the future”, said that to enable technology adoption in the real estate sector, a strategy should be developed for leveraging innovation to achieve strategic business objectives.
Key economic driver
The report, titled ‘Disruptions in real estate in India’, highlighted the demand for faster, more efficient and cost-effective construction has resulted in increased usage of innovative construction technologies.
It added that with the rise in construction costs globally (up to 5.6 per cent in 2018 and 5.5 per cent in Q1 2019), decline in construction workforce (by 12.9 per cent since 2007) and increasing wage bill (31.2 per cent hike on average), real estate developers and construction companies are investing in proven construction technologies bearing potential to solve time, cost and labour issues.
Niranjan Hiranandani, President, Naredco, said, “The economic disruptions has transformed the face of Indian real estate progressively, leading towards rapid urbanisation and age of technological advancement. Adopting neo-tech practices augments output deliverable with enhanced quality, efficiency, compliant friendly and in-line with the financial disciplinary.”
The real estate sector is a key economic driver for rising GDP growth and multiplier job creation effect, it's quick revival is imperative for the growth traction of India, he added.
Ecosystem needed
The report also highlighted the need for creating an ecosystem to build relationships and drive strategy for stakeholder buy-in across real estate life cycle.
Chintan Patel, Partner and Leader, Building, Construction and Real Estate, KPMG India, said, “Disruptions are inevitable and they have arrived in Indian real estate and construction industry. Businesses willing to adopt and adapt to the new trends and technologies will be geared to succeed in capitalising the opportunities emerging from these disruptions."
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