Real estate companies are starting to seek the help of technology start-ups in a bid to save costs as they face meek to zero interest in projects due to demonetisation.

Brigade Group, as a part of its Real Estate Accelerator Programme (REAP), is taking technological help from five start-ups, ranging from ‘smart’ parking sensor tech to drones for capturing images.

Some of the reasons cited by real estate companies have to do with lack of differentiation, massive project delays and labour-related issues, in addition to the demonetisation effect and the upcoming Good and Services Tax.

“Ninety per cent of the projects are getting delayed and 80 per cent of them are overshooting the budget,” said Nirupa Shankar, Director of Brigade REAP.

This, coupled with lack of improvement in labour productivity, has compounded the problems, added Adarsh Narahari, Managing Director, Mantri Primus Lifespaces.

With the demonetisation adversely affecting the sector, players are now openly talking about these concerns.

Tech talent

They also seem to have recognised that they have no access to tech talent. With lack of quality manpower, time is lost on processes such as excavation (ascertaining whether there are rocks below the surface). “Use of satellite imaging and digital mapping will help companies understand various parameters,” according to Shankar.

REAP is working on ways to use drone sensor data and aerial images to improve mining and site planning, wherein a start-up can provide data that can be analysed to make quicker decisions. The firm, however, did not get into specifics.

Capturing data, storing them and over time analysing various aspects, such as predicting the quality of construction in certain floors, are some areas in which realty firms are seeking start-up help, said Bimal Hegde, CEO, Chartered Housing.

Catching up

“At this juncture, as well as in the foreseeable future, these companies have to take help of technology in their outreach to consumers and to enhance operational efficiencies; otherwise, they will be left behind,” said Sanchit Vir Gogia, founder of advisory firm Greyhound Research.

Smart cities

Part of the lure for realty companies to jump onto the tech bandwagon is the government’s Smart City initiative.

For example, PParkE is a start-up which has developed an app using which a motorist can see real-time parking information and reserve parking space. According to founder Shampa Ganguly, PParkE is being used in Jaipur Development Authority’s Smart City project.

Realty firms believe tech adoption can speed up the smart cities vision.

Other areas include a labour force management platform that could offer a single-window payment system to construction workers, a database of people in the construction industry, and water management technologies.

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