‘Covid-19 Has Accelerated Need To Adopt Digital Tools In Real Estate

Covid 19

‘Covid-19 Has Accelerated Need To Adopt Digital Tools In Real Estate

Real estate

developers should make an investment in digital adoption for reducing their operational cost and improving end-products to deal with the challenges posed by the COVID-19 pandemic, according to consultancy firm Bain & company. The outbreak of COVID-19 has adversely impacted the already weak consumer sentiment in the residential property market and the “demand is likely to be muted until there are economic stability and job security”.

“It is imperative that real estate companies make an investment in digital adoption to stay ahead”, the report said. Internet of things, digital engineering, advanced project management tools, improved connectivity, data proliferation and adoption of smartphones and handheld devices, are some technologies that will change models in the near term, it added.

Real Estate & COVID 19

Real Estate & COVID 19

Other current technology, such as 3D printing and robotics, will also have a long-term effect on the industry, the consultant said. Bain & Company noted that project delivery and timelines have been affected due to disruption in construction activities because of the lockdown, labour shortage and supply constraints. With subdued demand, it said that developers would face increased constraints in working capital and cash flow.

In these challenging times, Bain feels that the priority for developers would be to operate with maximum efficiency and reduce operational costs and leakages. “Developers that demonstrate thoughtfully redesigned infrastructure upgrades, such as touchless surfaces, digitally-enabled entry and exit, resident and guest management systems, smart homes and smart clubhouses, will attract buyer attention and provide differentiated value,” the report said.

Developers That Demonstrate

Developers That Demonstrate

In view of this pandemic, Bain & company said customers are deferring their plan to go for site visits and traditional lead conversion techniques of walks-ins and in-person show flat tours are losing traction. “Technology can help developers to enhance efficiency with time, cost and quality across the value chain, especially in designing, planning, budgeting and executing on-site projects,” the report said.

Bain & Company has listed some select digital interventions that could have a significant effect on developers. This includes information modelling (BIM) that uses a standardized machine-readable information model to improve the planning, design, construction, operation and maintenance of a facility such as a building or type of infrastructure.

Enhance Efficiency

Enhance Efficiency

Apart from BIM, a workflow management system (WMS) is a one-stop solution for simplifying collaboration across all stakeholders in the real estate activity chain. “The industry and developers must begin to accelerate their digital transformation journey to improve process efficiencies, redefine the end-product and retool with an upgrade operating model for a new future.” The report concluded. Bain & Company is a global consultancy firm with 59 offices in 37 countries.

It mainly helps real estate clients in business units and corporate strategy, sustained cost transformation, cash and capital management and related financial issues, organizational design and alignment, merge strategy, integration, and due diligence.

Real Estate Activity Chain

Real Estate Activity Chain

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