The disrupting technologies have been creating ripples in almost every sector of the economy. There is no doubt about the fact that technology plays an important part in the economic growth if the role of technology is negated for a while from the whole procedure of supply and demand and the whole process of manufacturing and services sector will come to 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 through this blog brings forward transforming technologies in the real estate sector which have been influencing daily transactions. The evolution of technology in the real estate sector is marked by three PropTech waves 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 unprecedently. 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 used to invest in a project.
Digitised Housing
Technology has also transformed the concept of housing. Now the purpose of houses or personal adobes is not only restricted to a space that is meant to be used only by owners rather the free spaces in the homes are often lend to the tenants or the visitors who have moved in a city for a short trip. Technology has created convenience in a manner 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 also that people have started to market their properties for short-time rentals which offer higher returns as compared to long-term rentals.
Tokenization of an Asset
Blockchain technology is one of the disruptive technologies in the real estate sector and it is harnessing a new concept which is about the tokenization of the real estate asset. This aspect is somewhat similar to crowdfunding however the major difference is of blockchain technology which is the most secured medium for real estate transactions. The concept of tokenization is revolutionary in the real estate sector, therefore, requires an explanation for the basic understanding. In Tokenization, 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 paying the amount 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 is helpful in understanding the geographical context meanwhile also giving 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 useful 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 which hampers its reputation and puts the investment of people in jeopardy. As a panacea to this, Cadastral Mapping is bringing a lot of convenience in the real estate sector 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 to keep a track record of the land, establish its authority and increase monitoring which can also increase the tax revenues of the government.
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