Realty developers need to adopt more digital tools
Demand likely to be muted until there is economic stability, job security: Report
Real estate developers should make investment in digital adoption for reducing their operational cost and improving end-products to deal with the challenge 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 is economic stability and job security", it said.
Bain & Company recently released its report ''Residential Real Estate in India - Unlocking Efficiency and End-Product Efficacy Through Digital.'' "In these pressing times, it is imperative that real estate companies make investments in digital adoption to stay ahead," the report said.
Internet of things (IoT), digital engineering, advanced project management tools, improved connectivity, data proliferation and adoption of smart phones and hand-held devices, are some technologies that will change operating models in the near term, it added. 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.