Automating and Streamlining Real Estate Development Workflows


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Automating and Streamlining Real Estate Development Workflows

Advancements in technology are gradually replacing the outdated processes and operational tactics of the traditional real estate industry with innovative methodologies. A select few real estate technology companies have begun rolling out technology-based platforms in order to facilitate the operation and management of real estate assets and the construction process.

 

PropTech for Smart Cities


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PropTech for Smart Cities

Nearly 31per cent of India’s current population lives in urban areas and conetributes 63 per cent of India’s GDP.
With increasing urbanization and high GDP growth, expectations are that another 157 5 per cent (2007 350 Million people) of the
rural population will migrate to urban areas by 2030.This along with China’s urebanization is the single largeest contemporaneous mass migration in Human history. As is obvious, such a migration cannot be maneaged without creating significant urban infrastructure support. Keeping this in mind the Government has initiated an ambitious Smart Cities Mission. The Mission is intended to cover 100 cities.
Technology has to be a key ingredient of any such ambitious mission. The advances in Blockchain, Cloud Infrastructure, Geolocaetion services, Internet of Things (IoT), Artificial Intelligence, Augmented and Virtual Reality (AR/VR) can provide fertile building blocks for the smart cities of future. Below we will cover some of these technologies that can help significantly expedite and enhance the Smart City Mission. Each of these technologies can warrant detailed analysis.
Blockchain can create an information chain that is immutable and indestructible. This can help smart citeies in fully digitizing land records and capturing transactional dam that is sacrosanct.
LoT enabled transportation systems, effective use of data from different sources and processing information in real time to take immediate action can improve traffic flows, effectuate electronic road pricing based on congestion and have a centralized monitoring and command and control system for traffic management. Some of this is already under implementation in cities like London and Singapore.
LoE Internet of Everything) in Health Care, adoption of technology enabled solutions complimented with an array of healthcare management services, will help the healthcare industry in India leapfrog into ‘information age healthcare’. Analysis of digitized patient data can significantly enhance healthcare delivery in Smart Cities.
Networking & Communication critical to many of the technology trends related to smart cities is the underlying communications infrastructure that enables smart cities to connect infrastructure, devices and people and gather the data and deliver services to myriad endpoints.
Big Data & Data Analytics The evolving technology that captures,
manages and analyses this big data and leverages technologies such as cloud computing. Cities are now able to access and use
massive computing resources that were too expensive to own and manage only a few years ago. This is being used in traffic control, garbage collection, resource planning and allocation and for citizen engagement.
Combination of Cameras, Drones and Big Data analytics Can be used in crime prevention and crime control through predictive policing across major cities.A number of police departments are already using these tools. It is fair to assume that these technologies are economic game changers for Governments, City Planners and City Administrators. They will transform and make more efficient how we build, manage and operate our cities in the future.

Relentless Execution Focus


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Relentless Execution Focus

1. Share with us your company profiling and latest technological advances in your products, projects and services in brief?
Build Supply is a very distinctive and an innovative SaaS enabled platform that is the most advanced and comprehensive end to end ERP solution available for the Real Estate and Construction Industry. We provide solutions for intractable problems in Real Estate and Construction process management. We have created a transparent, efficient, seamless management and purchasing experience for the construction industry offering best practices, standardized specifications and a comprehensive database of line items and associated rate analysis.
Our product “Cost Manager” was commercially launched in January 2017. This is a cost management and procurment software specifically designed for real estate and construction projects in India. We created a standardized database of line items, which is now upto 13 million line items and is helpful to be used across all asset classes like residential.commercial, hospitality etc. The product has modules for creating Cost Plans, developing BoQ’s, Procurement, E-tendering, Billing and Invoicing, Vendor Management, Material Store and Planning in the system. These modules enable an owner to track project expenditure, helps them scale up their operations, project time lines efficiently and increase profits by monitoring costs, material procurement and time schedules. There are detailed system generated reports pertaining to Project Summary, Cost comparison, Package Costs, Bid Comparison, Cost Component, Resource plan and a lot more in real time. Therefore, you can not only maximize profits, but also save a lot of time.
Today, we are working with some of the largest and most prominent real estate developers in India like Godrej, Vatika, and Puravankara. We have around 50 million sq.ft of projects, that will be developed with the support of our ERP systems.
2. Give us your opinion on the construction sector using concepts of technology for better, smart and efficient launches to deliver promising growth potentials?
Well…being the second largest employer in the nation, the sector is much under penetrated in terms of technological adoption and automation. But this is changing fast with stricter government policies and RERA being implemented. The developers currently are under much more pressure than ever before to speed up work and be more transparent in their execution. These factors have led to huge increase in the demand for tech intervention including digitizing work flows, data backed decision making and predictive analytics.
Digitizing workflows has substantial benefits – One of the key advantages of digitization is for project managers to be able to receive real-time notifications of movements in KPIs wherever they are at a site, en-route, etc., so they can take immediate action when necessary. Digitizing work flows offers real estate and construction companies a fast and efficient way to achieve visibility into real-time profitability and project management, as well as an easy way to enhance productivity, project delivery, and improved practices.
Also, Project billing takes place at specific milestones, real-time tracking of labour, petty cash, and equipment usage is the best way to protect against budget creep and inaccurate reporting. Digitizing these workflows enables real time tracking and eliminates the need for manual data entry.
Hence, Investing in the most advanced technologies for tracking project costs and monitoring project timelines has become essential, and it’s marking a turning point for an industry that has often been considered slow to change.
3. Discuss your future business plans and strategies, related to the use of technology in the company in various practices?
We are getting a great response from the market in terms of SaaS adoption and penetration of our SaaS product. As I mentioned earlier we have close to 50 Million square feet on the sytem now. Further, we are planning to increase the range of our services with the launch of a reverse auction module in the next couple of months. This feature as the name suggest will be like a conventional auction but in reverse. The vendors will bid their services and products on a live real time platform to be awarded by the developer based on matched terms and conditions. In the long term, we are projecting our business to evolve as full-fledged marketplace where the developers can procure the required services and material directly from our systems skipping various steps and associated margins in the supply chain. This will be a very interesting development for the proptech sector and our customers would be the one getting maximum benefit out of this.
We also currently have close to 10,000 vendors on our system. Most of these are SME’s that have limited access to financial products and services. We are looking at creating a marketplace of financial services for this group as well. This will enable the SMEs facing a financial crunch to manage their balance sheets more effectively and will help them grow their businesses. We will also roll out additional credit services offerings for this group.
4. What are your views on the budget announced for the industry and give us a few details on the related financial ambitions as a key player?
The Industry has witnessed revolutionary changes with the RERA Act since late 2016 and with the government’s focus on affordable housing in this budget, the future will belong to companies that work trasparently and can create scale in their businesses.
The finance minister has said that the government will create a dedicated Affordable Housing Fund (AHF) in the National Housing Bank, funded from priority sector lending shortfall and fully serviced bonds authorised by the government of India. He also added that in line with the government’s “Housing for all by 2022” program, more than one crore houses will be built in rural areas under the Pradhan Mantri Awas Yojana (PMAY) Scheme.
None of this will be possible without the ample use of technology so we feel this opens up a great market for us. There are 12000 developers registered with CREDAI pan-india. I think they all are potential clients for us.
Therefore, we see it as a balanced one with the government focusing on affordable housing being great for a grwoth push but it will take a couple of years for it to come to fruition as the companies will have build up their team and infra to execute on this scale.
5. Is there is anything that you would like to share with your audience at large – the motives and principals of the company to remain competitive in near future?
According to me, market driven products and customers-first approach are the key components for any business to remain profitable and competitive in the long term. BuildSupply was created to fill a very major gap in the industry that no one was addressing. And to do a good job of servicing our customers we need happy employees. No matter how big your company is or how much funding you have, your customers are your only ‘true investors’ and the employees of a company are the ‘true partners’. Tying these principles back with a focus on relentless execution is our mantra for success. These core principals will help keep us competitive for a very long time and become market leaders.

PropTech – The Big Trends changing Real Estate


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PropTech – The Big Trends changing Real Estate

Technology is changing every industry. Real Estate and Construction have been slow to adapt to the changes in technology. One particular report puts the sector at just above agriculture in terms of tech adoption. On average Real Estate and Construction companies spend less than 1.5% of their topline on software. This number is greater than 3.5% for most mature industries. Adoption of technology across Enterprise Resource Planning, Project and Construction Management and Sales/Customer Service are not management consulting buzzwords anymore. They are essential for the survival and potential growth of any large-scale Real Estate business. Globally, companies are looking at 2-3% of project costs as the budget for software technologies to create cost and time efficiencies. BuildSupply is at the forefront of this change in India and is working with smart companies like Godrej Properties, Vatika, Omaxe, Puravankara and Nelson amongst others in using technology to create scale and efficiency across their platforms.The Real Estate and Construction industry is the single largest Non-Farm employer in the country. As per a recent report the sector is expected to be at about $180 BN in size by 2020. Despite the large scale the sector still operates in an antiquated fashion providing enormous scope for PropTech companies to create solutions that provide transformational efficiencies.
The sector has also seen significant regulatory change in the last twelve months with the implementation of RERA and GST. These combined with the Government’s strong focus on Affordable housing, Smart Cities and Large industrial corridors (like the MIDC) make it imperative that Technology becomes a key enabler for any participant who wishes to create scale and efficiency in the sector.
Over the last few years funding for Tech companies in the Real Estate and Construction sector, more commonly known as PropTech, has been rising steadily. By late 2016, Venture Scanner was tracking 1,258 Real Estate Technology companies across 61 countries, with a total of $28 billion in funding. The MIT Real Estate Innovation Lab holds a database of over 1,600 Real Estate Tech start-ups. India is the single largest market in Asia for PropTech in terms of number of deals. A total of 77 deals worth USD 928 million have been reported in the PropTech space since 2013 in India.
We are listing below the top technologies that will fundamentally change the Real Estate and Construction Sector. We at BuildSupply have been utilizing these technologies in various forms to service our clients.
Blockchain is an immutable, decentralized database of completed transactions stored in an encrypted block. Many such blocks are linked in a database in a chronological order making the block chain. Once added a block cannot be changed and is shared and validated by the nodes in the block chain network. Thus the information becomes immutable and indestructible. Some major applications of Blockchain in Real Estate are below:
1. Validating transaction/sale data from MLS (Multiple Listing Services) like Housing.com, 99 Acres, PropTiger etc for property related information
2. Title Records can be completely digitized and validated
3. Mortgage Transactions can be streamlined and an ecosystem created by enabling people to securely and efficiently share data and money
Cloud Computing provides computing hardware infrastructure as a service. This primarily includes server space hence making physical servers redundant for most companies. Using the Cloud you don’t have to worry about hardware infrastructure and can focus on deployment and the software infrastructure
1. SaaS based Process and Project Management systems are a product of the Cloud. This type of a software platform allows real time collaboration across varied uses in construction like Planning and Estimation, Procurement, Invoicing and Billing, Resource Planning and Time Planning.
2. A cloud based platform allows a real estate organization to both access and capture information about potential and current clients for their Lead and Marketing Management/Customer Relationship Management
Drones are unmanned aerial vehicles that can fly indoors, through densely populated areas, around buildings at low altitudes and to places where it is not possible to reach easily.
1. Drone cinematography can create very interesting visual tours of buildings that can help in the sales process. For eg aerial panoramas can be used to showcase views from specific floors before construction
2. Drones can also be used for monitoring progress, safety, material/tools delivery and inspection of construction sites
AI (Artificial Intelligence) provides software systems capability to build opinions and take decisions based on the learning performed on live and historical data. AI is the core building block for intelligent systems.
1. Building Management System can be powered with AI to control and monitor all mechanical and electrical systems and processes in different types of buildings like commercial, residential, industrial and airports etc
2. Location Analytics using GPS (Global Positioning Systems) can provide very rich data that can help create AI for pricing, logistics, delivery mechanisms and site infrastructure amongst other uses.
Augmented Reality (AR)/Virtual Reality (VR) is adding digital elements to real life systems or creating simulated environments.
1. AR/VR technology can be used for developing virtual design and save significantly on prototype costs. It showcases the exterior and interior of properties that aren’t built yet so that clients can get a clear look at what’s being offered.
2. AR/VR allows potential buyers or tenants to visualize the new properties on a screen or handheld and significantly enhances the user experience. It allows you to create stunning 3D real estate tours and get properties stage
Internet of Things (IoT) is the network of devices capable of connecting with each other and sending/receiving data making them members of a digital echo system.
1. IoT help customers significantly in creating Smart Homes to help manage a variety of systems in the context of a building. Users can now collect and analyze data for Energy systems, HVAC, Plumbing, Firefighting, Mechanical and any other building related systems
2. IoT enabled devices can also help predict and service a variety of functional issues in the buildings like energy usage, fixing pipes or mechanical systems and much more
As is obvious from the above that technologically will fundamentally change the real estate and construction sector. The successful companies in the next cycle will be the ones that adopt technologies as an integral part of their workflows.

Germination of BuildSupply


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Germination of BuildSupply

Being a hard core real estate guy who had nothing to do with technology to being the Founder of an ERP Solution company ‘BuildSupply’, which is one of the early entrant in the real estate ERP solution segment, Sameer Nayar is trying hard to help the realty developers in creating the economies of scale and scope.

 

Real estate players turn to start-ups to build a better tomorrow


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Real estate players turn to start-ups to build a better tomorrow

As land prices are dropping or showing flat growth across several markets in India, plunging the country’s real estate sector into a state of despair, players are now focusing their binoculars towards startups as they look to quickly adopt technologies to improve efficiencies, reduce costs and offer more modern solutions to their buyers.

 

A New Way Forward: Presenting Core Market Ideology


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A New Way Forward: Presenting Core Market Ideology

BuildSupply’s automated cost plan module allows its users to create accurate and comprehensive estimates using limited or no design information. The module is designed to ensure the estimates can evolve with the progress of design and projects details. BuildSupply’s cost plan feature seamlessly integrates with its bill of quantities (BOQ) module to provide an deep level of granularity at a very early stage. This in-depth knowledge helps plan better and thereby enable substantial savings.