Real Estate Firms Lag in Tech Investment, Reveals Brigade's Nirupa Shankar
In a recent interview, Nirupa Shankar, a senior executive at Brigade Group, highlighted that real estate companies are spending less than 1% of their revenue on technology. This revelation comes as a surprise in an industry that is rapidly evolving and increasingly dependent on digital solutions.
Real EstateTechnology InvestmentBrigade GroupReal Estate InnovationDigital SolutionsReal Estate NewsApr 29, 2025
This low investment in technology is a cause for concern, especially in an industry that is rapidly transforming due to digital advancements. The construction and property management sectors are increasingly leveraging technology to improve efficiency, sustainability, and customer satisfaction. From smart home technologies to advanced project management software, the potential for technology to revolutionize the real estate sector is vast.
One of the primary reasons for the low tech investment is the perception that real estate is a traditional, brick-and-mortar business that does not require significant technological intervention. However, this view is slowly changing as real estate companies realize the benefits of digital solutions. For instance, Brigade Group itself has been at the forefront of embracing technology, launching initiatives like Brigade REAP to support tech startups in the real estate space.
Nirupa Shankar emphasizes that the real estate industry needs to adopt a more tech-savvy approach. She points out that technology can help companies streamline operations, reduce costs, and enhance the customer experience. For example, using AI and machine learning can optimize property management, while blockchain can improve transparency in transactions. Moreover, virtual reality (VR) and augmented reality (AR) can transform the way properties are marketed and sold.
Despite these benefits, the adoption of technology in the real estate sector has been slow. According to a report by a leading market research firm, only a small percentage of real estate companies have integrated advanced tech solutions into their operations. The reasons for this include high initial costs, lack of awareness, and resistance to change. However, the benefits of technology are undeniable, and companies that fail to invest in tech risk falling behind their competitors.
To address this issue, real estate firms need to adopt a more strategic approach to technology. This involves not only increasing the budget for tech investments but also fostering a culture of innovation. Real estate companies can benefit from partnerships with tech startups, as seen in the Brigade REAP program. Collaboration with tech firms can help real estate companies access cutting-edge solutions and stay ahead of the curve.
In conclusion, while the real estate industry has made some progress in adopting technology, there is still a long way to go. Real estate firms need to recognize the importance of technology and invest more in digital solutions. By doing so, they can unlock new opportunities, improve efficiency, and enhance the overall customer experience. The future of real estate lies in embracing technology, and companies that fail to do so may find themselves left behind.
Frequently Asked Questions
What is Brigade REAP and what is its purpose?
Brigade REAP (Real Estate Accelerator Program) is an initiative launched by Brigade Group in 2016. Its purpose is to foster innovation and support startups in the real estate sector by providing them with the resources and mentorship they need to grow.
Why is the low tech investment in real estate a concern?
The low tech investment in real estate is a concern because the industry is rapidly evolving and becoming more dependent on digital solutions. Technology can help improve efficiency, reduce costs, and enhance the customer experience, but without adequate investment, real estate firms may fall behind.
What are some benefits of technology in the real estate sector?
Some benefits of technology in the real estate sector include streamlining operations, reducing costs, enhancing customer satisfaction, optimizing property management, improving transparency in transactions, and transforming marketing and sales through virtual and augmented reality.
What challenges do real estate firms face in adopting technology?
Real estate firms face challenges such as high initial costs, lack of awareness about the benefits of technology, and resistance to change. These challenges can hinder the adoption of advanced tech solutions.
How can real estate firms overcome the challenges of adopting technology?
Real estate firms can overcome the challenges of adopting technology by increasing their budget for tech investments, fostering a culture of innovation, and forming partnerships with tech startups. Collaboration with tech firms can help them access cutting-edge solutions and stay ahead of the competition.
Related News Articles
India's Residential Market Soars to New Heights in H1 2024
According to a JLL report, the number of residential units launched in the first half of 2024 reached a record high, with premium and luxury segments showing significant growth.
R Madhavan's Luxurious Lifestyle: Expensive Flat, Impressive Net Worth, and Car Collection
Take a peek into R Madhavan's lavish life, featuring his new flat in Mumbai's BKC, his staggering net worth, and his collection of luxurious cars.
Diwali Special Investment Tips for Samvat 2081
Discover expert investment strategies for the upcoming Samvat 2081, brought to you by market guru Gautam Shah. Dive into the world of stocks, real estate, and more to make the most of this Diwali season.
Pune Experiences 11% Decline in Property Registrations in November: Knight Frank
Last year, the housing market witnessed record-high property sales across Indian cities, driven by strong infrastructure growth and affordability. However, this trend seems to have cooled down, with Pune experiencing an 11% drop in property registrations
ASK and Sotheby’s Launch Rs 10 Billion Luxury Real Estate Fund
ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has partnered with Sotheby’s International Realty to launch a Rs 10 billion luxury real estate fund in India.
Vivek Oberoi-Linked Real Estate Developers Face ED Action: Rs 19 Crore Assets Attached
In December 2023, the Enforcement Directorate (ED) took significant action against real estate developers linked to Bollywood actor Vivek Oberoi, attaching assets worth Rs 19 crore in a major housing scam. The Bombay High Court also criticized the Maharashtra Police for mishandling the investigation.