There is a strong need for digital transformation in the construction business


 

With rising demand for homes and building supplies, the Indian construction industry is anticipated to expand at a 6.2% annual pace in the next years. Construction materials, which make up two-thirds of the overall cost of building, will become more expensive as a result of this rise in material costs, supply chain problems, and inflation. Consumers are unwilling to cut corners when it comes to the quality of the materials used, despite price rises. According to Ashish Aggarwal, Founder & CEO, SpaceMantra, the building sector is embracing digital technologies like virtual design, VR home tours, cloud-based software, and big data analytics more and more to streamline the real estate process.


Mr. Aggarwal discusses his thoughts on the real estate market's current status and how digitization might be a key factor in the future in an exclusive interview with Sanjeev Sinha.


India's real estate development industry is booming as a result of the nation's record-high housing demand. How will this impact how construction materials required to develop this infrastructure are consumed and priced?

The market dynamics have dramatically changed as of 2023. Since that materials make up around two thirds of the overall cost of building, developers will be forced to raise prices as a result of increased material costs. The supply side shocks, increasing inflation, and the frail global supply chain all contributed to a decline in raw material prices. Customers won't compromise on the quality of the building materials used, therefore a price increase to some level could have a detrimental impact on the fast expanding real estate market.

Nowadays, consumers like to choose each component of their ideal home individually. How does it impact online purchasing habits in the digital age?”

Allowing clients to hand-pick each component of their dream home helps to give customers the autonomy to decide how their dream home will look in today's increasingly digital world. Yet, doing so can cause the procurement process to go more slowly. Customers and businesses may now choose their preferences from a variety of raw material types, grades, and pricing online in just a few simple steps. With this kind of digital procurement, you may quickly and effectively get the precise materials your project needs.

How is the real estate sector using technology to better serve their clients?
Due to the increased disruption of the global supply chain, rising competitiveness, and labour shortages, there is an increasingly urgent need for digital transformation in the construction industry. An increasing number of innovative technologies are being incorporated into the building business. Virtual design and visualisation are common in these technologies. The real estate process is made more tech-savvy and results in a smooth experience thanks to virtual reality home tours, cloud-based software, smart contracts, and big data analytics.

What are some trends and predictions we can look forward to for the construction sector this year as we usher in brand-new year?
A strong strategy of infrastructure projects in numerous industries is predicted to help the Indian construction industry grow at a 6.2% annual rate from 2023 to 2026. Investment in the construction sector will increase as a result of government initiatives like Atmanirbhar Bharat, which is anticipated to boost domestic industries and micro, small, and medium-sized enterprises (MSMEs), and the Pradhan Mantri Gati Shakti National Master Plan, which aims to drive economic growth through infrastructure development.

What lies in store for SpaceMantra going forward in 2023?
Building a one-stop eB2B platform is part of SpaceMantra's ambition to organise and unify the extremely dispersed and unorganised construction industry. 

We are working hard to strengthen our vendor base by developing close relationships with brands and manufacturers. 

This will enable us to provide our product line to customers at lower pricing. 

We are also attempting to address the industry's long-standing problems with procurement. 

By providing a variety of integrated services that will help them overcome their operational issues, we intend to increase the number of customers we serve in the future.

 

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