IT Sector, A New Ground Of Indian Real Estate

The Indian real estate sector is breaking new ground, by adopting information technology (IT).
In recent years, many real estate companies have been taking to end-to-end IT solutions in a bid to automate their business processes. This has not only helped to increase efficiency and cut cost but also to make their functioning more transparent, they say. It has enabled them to grow, as well.
Rapid growth in business opportunities, inflow of foreign investment into the sector, and the entry of second-generation owners or managers into companies are largely the reasons behind the real-estate industry adopting IT solutions, say industry watchers.
Using IT is linked to the opening up of foreign direct investment in the real estate market, says RahulChawla, Chief Executive, In4velocity Systems, a provider of IT solutions to the real estate sector. Most of the new developers funded by private equity or real estate funds use IT, he adds.
The spread of IT could be attributed to the second-generation owners or managers in a company, says Rajesh Ponnan, SBU Head, Construction Solutions, Sobha Renaissance Information Technology Private Ltd. They have more exposure, are aware of technology and rely on technology to a great extent, he points out.
However, the use of complete end-to-end solutions is still fairly recent. Chawla says it is a three-four-year-old phenomenon. In4velocity introduced its product in 2005. Initially the response was slow, but in the last two years, things have begun to change. At present the company gets about seven to ten enquiries a week, he says.
Earlier, different departments in a company would independently decide on the software they would use, but now enterprise resource planning (ERP) has become popular, says Ponnan. He says the industry has moved from fragmented software to consolidated ERP solutions, though it involves a substantial cost escalation.

One Comment

  1. Posted August 19, 2008 at 1:12 am | Permalink

    India has “enormous potential in all its property investment categories”. Strong population growth, a large pool of qualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%.India is the prime destination for IT services outsourcing. In the coming five years, at least 55 million m² of extra office space must be completed in the premium office segment alone. Property investments in India are not risk-free. Market transparency is far behind European or US standards. It is therefore vital for foreign investors to have a professional local partner. The lack of liquidity and upward pressure of pricing remain the main concern within the market.For more view-

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