Artificial intelligence (AI) could change how Indians search for, buy, finance and manage property by connecting different stages of the real estate journey through a technology platform, according to Aurum PropTech Executive Director, Onkar Shetye.
From using consumer preferences to improve property recommendations to helping developers understand demand and connecting home financing with property discovery, AI could play a growing role across the real estate ecosystem.
Shetye’s comments come in the context of Aurum PropTech’s Rs 458-crore acquisition of Housing.com. The all-equity transaction, which involved the issue of around 1.98 crore new shares, is expected to increase REA Group India’s stake in PropTech to 24.9 per cent.
The acquisition is expected to bring Housing.com’s property discovery and lead-generation business closer to PropTech’s capabilities across real estate transactions and related services. According to Shetye, the combination could help the company move beyond a business model centred primarily on listings and leads.
“The real opportunity we identified was that if we connect the two—the journey from leads to monetisation that Housing has, and our ability to manage transactions—it creates a fundamentally different economic model,” Shetye said in a conversation on Zee Business.
5 ways AI could potentially reshape India’s real estate journey
Here are five ways AI could potentially reshape India’s real estate journey:
1) Property search could become more personalised
AI could change how buyers search for homes by analysing their searches, preferences and other requirements.
Instead of relying only on conventional listing filters, AI-based systems could potentially use consumer data to identify preferences and improve property recommendations based on factors such as location, budget and the type of home being sought.
Shetye said the company’s broader objective is to connect property discovery with other stages of the real estate journey.
“We want to build an Indian real estate operating system that connects property discovery, transactions, home financing, rentals and property management into an intelligent ecosystem,” he said.
However, the extent to which these services are integrated will depend on how the two businesses are combined and how the technology is implemented.
2) Property portals could move from lead generation to transactions
Property portals have traditionally generated revenue through listings, advertising and leads for developers, brokers and property owners.
The Housing.com acquisition could allow PropTech to connect this property discovery and lead-generation activity with its transaction-related capabilities.
In practical terms, the proposed model could link a consumer’s initial property search with the subsequent stages of a transaction. For developers, this could mean using data from consumer searches and leads to improve the conversion of potential buyers.
The shift would represent a move from monetising only the initial interaction or lead towards participating in a broader transaction journey.
3) Home loans could be linked to property discovery
Home financing is another area that could become more closely connected to the property search process.
At present, a prospective buyer may search for a property through one platform and then separately approach a bank, lender or financial service provider for financing.
PropTech already operates across areas including primary sales, resale, rentals and home financing. If these services are integrated with Housing.com’s property discovery platform, buyers could potentially access financing-related services as part of a more connected homebuying journey.
The company has not indicated that all these services will immediately be available through a single platform. Instead, integrating the different businesses and building the technology infrastructure will be a key part of the process.
4) AI could give developers more data on buyer demand
The potential use of AI extends beyond consumers. Developers could also use data from searches and user preferences to better understand demand.
According to Shetye, AI could help developers analyse consumer searches, preferences and demand trends to assess what type of homes may be required in particular locations.
AI could potentially help developers assess:
- What type of homes consumers are searching for
- Which locations are seeing demand
- What configurations should be offered
- Whether a product gap exists in the market
- How pricing strategies should be planned
“An AI layer can help them understand consumer searches and preferences, demand trends, what kind of homes should be built in which locations, what configurations should be offered, which products may be missing and what the pricing strategy should be,” Shetye said.
This could give developers more data to inform decisions around project locations, configurations, pricing and marketing. The potential benefit, however, would depend on the quality of the data and how effectively it is converted into business decisions.
5) Rentals and property management could be added to the same journey
The proposed integration also extends beyond the initial purchase of a property. The AI-led model could also extend beyond the point of purchase, with rentals and property management potentially becoming part of the same digital journey.
Rentals and property management are among the services that PropTech wants to connect with property discovery and transactions. This could potentially allow consumers to access different real estate-related services through a more integrated digital ecosystem.
The idea is to connect the journey from discovering a property and arranging financing to renting or managing it later.
Shetye said the company wants consumers to have a “complete, intelligent, seamless and connected journey” through a single app or web interface.
Whether that results in a genuinely single-platform experience will depend on the integration of the different services and the adoption of the technology by consumers, developers and other participants in the real estate market.
What will determine whether the AI-led model works?
For PropTech, the success of the Housing.com acquisition will depend not only on user growth or revenue but also on how effectively the platform is integrated and AI is deployed.
Shetye said the company will focus on integrating Housing.com into its ecosystem, enabling it with AI and gradually moving the business towards profitability.
“If we can improve the consumer experience through AI and enhance enterprise efficiency using AI, that would be the biggest measure of success for us,” Shetye said.
REA Group will remain invested in the business through its stake in PropTech set to rise to 24.9 per cent following the transaction.
Shetye said India’s real estate sector could become a $1-trillion market by 2030, creating a potentially large opportunity for proptech businesses.
For consumers, the key question will be whether the proposed integration can translate into a simpler property journey in practice. The acquisition could bring property discovery, transactions, home financing, rentals and property management closer together—but the success of that model will ultimately depend on execution, technology adoption and how seamlessly these services are integrated.
