India leans on innovative technologies to manage land and property

Disputes in land acquisition often delay business and infrastructure projects in the country. Technology and digitisation can help in settling disputes and accelerating economic activity

New technologies are boosting the property market and helping land management in India. As the government pushes for digitisation of land records and entrepreneurs deploy new technologies in the property market, a change is coming.

 

The global sales of property-related technologies (prop-tech) are estimated to grow from $38 billion in 2024 to $170 billion in 2034, according to a report by Future Market Insights.

 

“The strong growth dynamics for prop-tech can be attributed to the rapid development of technology and continuing digitalisation in the real estate sector. AI (artificial intelligence), IoT (internet of things), big data, and blockchain being incorporated provide even more life into property management, enhancing the efficiency of the transactions and making way for data-driven decisions,” according to the report. Technology is also attempting to overcome the fragmented nature of land ownership and regulation.

 

“One of the key restraints for the prop-tech market is associated with complex regulatory landscapes and compliance challenges for real estate technologies. Different regions have various regulations regarding property transactions, data privacy, and smart building standards, which create hurdles for the widespread adoption of prop-tech solutions,” said the report.

 

For using properties in the best manner, technology is being used for effective workplace management. The work includes creating a digital replica of a physical building or space, according to CBRE Research, a real estate consultancy. Data gathered by sensors helps in planning and making informed decisions about space allocation and usage. Companies are using AI-enabled analytics for insights on employee behaviour, space preferences and trends.

 

The government says that the digitisation of the so-called record of rights has been completed in 625,000 villages out of 657,000 (95.09 per cent) in the country. A similar project for digitisation for urban land has been launched with the National geospatial Knowledge-based land Survey of urban Habitations (Naksha).

 

A Naksha pilot project has begun in more than 100 cities and towns across the country and it is expected to be completed in a year’s time. The pilot will be followed by a full survey to cover the entire urban area in the country within five years.

 

Real estate ownership, management and transactions can become transparent and efficient with such technologies. Equally important is the reduction in dispute once records are digitised and well established. Parallel efforts by the government and property technology companies promise to deepen the real estate market in India.

 

According to an assessment by India Brand Equity Foundation the real estate sector in India is expected to reach $1 trillion in market size by 2030, up from $200 billion in 2021. The sector is expected to contribute 13 per cent to the country’s gross domestic product (GDP) by 2025. Retail, hospitality and commercial real estate sectors are growing significantly, providing the much-needed infrastructure for India's economy. The country’s real estate sector is expected to be worth $5.8 trillion by 2047, contributing 15.5 per cent to the GDP from an existing 7.3 per cent.

 

Land and property are a priority asset class for Indians. Increased and consistent transparency in ownership will improve the market and spur more activity. Fewer disputes will build trust between buyers and sellers and accelerate transaction volumes. Using technology for managing space inside commercial property will lead to better utilisation of space and lower costs for enterprises.

 

India’s growth journey will require an increasing volume of commercial space for new age sectors like data centres, global capability centres and co-working spaces. Land will also be required for housing, highways, ports, warehouses and airports. Land acquisition is often a significant contributor to project delays. And ownership disputes hold up large projects. Technology and digitisation can help accelerate economic activity with lower costs and fewer disputes.