[ecis2016.org] If technological advancements can streamline processes in the Indian real estate sector and ultimately benefit buyers, why are developers slow to adopt it? A Housing News analysis
The Indian real estate sector, it seems, is yet to wake up to the benefits offered by technology, towards reducing operational and construction costs, maintaining timelines and tackling the labour crisis in the market. This, despite the fact that many of the technologies adopted globally, have already been introduced in India.
You are reading: Why is Indian real estate slow to adopt new technologies?
According to an Ernst & Young and FICCI report, the industry is grappling with a 30% labour shortage, which has given rise to several problems. Moreover, this gap has been increasing and the situation is expected to worsen, as demand is expected to increase three-fold.
Brotin Banerjee, MD and CEO of Tata Housing, agrees that Indian realty is grappling with a number of challenges, including shortage of skilled manpower, escalating project costs and prolonged construction periods.
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Technology affects various aspects, such as construction, project management, marketing, business management and customer service. According to a recent industry report, the implementation of new construction technologies can significantly reduce a project’s completion time and thus, reduce the losses arising due to delays.
“It could help a business to gain a competitive edge over its peers, by allowing automation and the efficient use of information,” explains Banerjee.
Tata Housing, he says, has actively deployed the latest construction technologies, such as hollow block masonry, Plasswall, use of steel reinforced expanded polystyrene concrete panels as load bearing walls, Mivan formwork and bio-enzymes for subgrade improvement in internal road construction.
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Experts contend that the real estate sector will eventually have no choice but to leverage technology, to aid faster and efficient construction. While many of the latest technologies are already available India, their adoption will depend on domestic requirements. Moreover, there is also a raging debate on whether technologies that have worked abroad, will give the desired results in the Indian market.
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We are already using technology at various levels of construction, including for manual jobs like weightlifting and also to make the whole operations process-oriented, points out Nikhil Hawelia, MD of the Hawelia Group.
“However, when it comes to the adoption of new-age factory-made solutions that change the construction methodology, there is some resistance due to lack of awareness, as well as the reluctance to come out of one’s comfort zone and experiment with new processes,” he reasons.
Some analysts believe that the involvement of multiple contractors and partners, in the development of the project, is the main barrier in implementing end-to-end technologies in the real estate industry. Sometimes, contractors are also changed from stage to stage. Any investment in technology needs to be fairly long-term and this may not be viable in an uncertain environment.
(The writer is CEO, Track2Realty)
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