Recently Snapdeal sold a luxury penthouse situated in Bengaluru for Rs 6 crore. This deal might put forward the question that can technology replace the human touch of real estate business. But facts such as – a person travels near about 350 km before purchasing the home- put heat into discussion. The transactions involve consent of complete family. The real estate agent also play a major role , by taking the client to the required sight and giving him valuable details like schools in the vicinity , products available in market nearby etc. ….
Is Real estate a technology business ?
People caught up in the flamboyance of start ups in Powai Valley; might have this misconception. If you use Google to study about the tech-savvy Real Estate Firms in past 5-7 years , the conclusion to be drawn is that they were not able to leave footprints on the cement of Real Estate Industry. In order to compete with the traditional system , the virtual real estate firms are trying to become real faster by connecting realtors with people looking to buy homes. Similarly the traditional players are trying to increase their visibility in the virtual world.
Especially in country like India, there are lot of emotions attached to the concept of shifting to new home. It calls for celebration most of the times .The human touch might be declining but it is rarely seen that people shift to new house without ceremony like “Griha Pravesh” .
Truth must be beautiful and medicine must be sweet, this has been folly of man since age of Adam. We know that real estate transactions can never be completely in white, but we still pretend to be unaware of it. Involvement of technology , certainly increases the white money’s share of transaction simply because government becomes more aware.
Is Real Estate a product or service based market ?
The answer is simple it is amalgamation of both. When you plan to enter the product based real estate business , then you have to tick a huge list of checkboxes . Some might even cross the barrier of ethics . But once you tick all the checkboxes of entry barrier then sky is the limit for you. The best possible example would be of a builder , who has to run from pillar to post ( in case he does not have friends with political background ) in order to get the no objection from the various government departments. Still there exist threats , which can be overpowered only by the means of money.
In the service sector , entry barrier is of the minimum possible height if you want to start your carrier as a local realtor. But if you wish to cater needs of entire nation , then you need to build a strong network of realtors , who could provide listings sufficient enough to bring organic traffic to your website.
In India the 95% of the transactions are carried by the realtors , so finally the conclusion is that technology cannot replace the human touch (the most important ingredient in the transaction) , when it comes to closing a real estate deal.