A Brigade REAP Initiative - Part I
The Real Estate industry which had been hit hard by Demonetisation, GST & RERA was finally showing signs of recovery. The current situation is yet another setback. As per real estate brokerage firm Anarock, residential housing sales may fall by 35% in 2020 across top seven cities in India. Net office space lease is estimated to fall by 30% during the same period. Retail space absorption will dip by 64% in 2020.
While survival and sustenance should be top priority for all businesses, every crisis also introduces the world to new opportunities. For example, During the dot com bubble, Amazon share price declined by 90% (from US $100/sh to US $10/sh) from its peak. But it managed to survive the crisis and today is one of the largest companies in the world. Flipkart was started in October 2007 at the peak of global recession and managed to change the retail sector in India. Similar possibilities are imminent in the Real Estate sector in India.
What is the need of the hour for the Real Estate industry?
Brigade REAP carried out a survey among CXOs of 100 leading real estate developers. The survey uncovered the top pain points that developers need continual help with and where #proptech startups can shine.
1. Optimized Sales & Marketing: Ways to improve qualified leads and customer engagement
2. Mitigate construction delays: Applications that can help monitor progress, flag off delays and help ensure quality
3. Liquidity management: Innovative finance & cash flow management tools which can plug into existing ERP systems
4. Operational efficiency: An opportunity for agile Proptech startups to help developers deliver operational efficiency and savings at various stages of a project lifecycle.