Realty developers to tap big data to handle demand, input costs
Real Estate

Realty developers to tap big data to handle demand, input costs

Real estate developers are hiring tech firms and harnessing big data to mitigate the influence of increasing input prices via accurate forecasting of demand and placing orders with the right set of vendors at the right time.

The firms are doing predictive analysis, utilising procurement data of the past five years and expected demand from the upcoming projects, to help decision-making and conserve prices.The costs are changing repeatedly. But a substantial amount can be saved by ordering at the right time - and from the right place, as per Naren Vijay, Executive Vice President, Lumenore, a unified business intelligence and analytics platform.

Developers told the media that the steel cost has more than doubled and cement by about 38% in the past two years due to which the cost of construction has increased by at least Rs 500 per sq ft. Developers have started to adopt tech and utilise advanced technologies in cost management to measure the demand and plan their procurement strategies accordingly, according to Saurabh Sharma, India director of David Adamson Group, a UK-based international construction consultancy.

Technologies such as BIM are assisting developers to stay ahead of the curve and pre-empt the requirements of the project accordingly. Increasing crude costs and disruptions in the supply chain have brought a lot of financial stress to the construction industry. Costs of construction materials have skyrocketed, leading to cost overruns in several construction projects.

Advanced techniques like predictive analytics have attained traction in the industry. By utilising historical data, machine learning techniques, and statistical algorithms, predictive analytics can recognise the likelihood of future events, as per Aditya Kushwaha, CEO and Director, Axis Ecorp, which is implementing data-analysis mandates for real estate projects. These models are presently also being utilised to ascertain the movement of raw materials costs.

Image Source

Also read: The domino effect of price rise on the construction industry

Real estate developers are hiring tech firms and harnessing big data to mitigate the influence of increasing input prices via accurate forecasting of demand and placing orders with the right set of vendors at the right time. The firms are doing predictive analysis, utilising procurement data of the past five years and expected demand from the upcoming projects, to help decision-making and conserve prices.The costs are changing repeatedly. But a substantial amount can be saved by ordering at the right time - and from the right place, as per Naren Vijay, Executive Vice President, Lumenore, a unified business intelligence and analytics platform. Developers told the media that the steel cost has more than doubled and cement by about 38% in the past two years due to which the cost of construction has increased by at least Rs 500 per sq ft. Developers have started to adopt tech and utilise advanced technologies in cost management to measure the demand and plan their procurement strategies accordingly, according to Saurabh Sharma, India director of David Adamson Group, a UK-based international construction consultancy. Technologies such as BIM are assisting developers to stay ahead of the curve and pre-empt the requirements of the project accordingly. Increasing crude costs and disruptions in the supply chain have brought a lot of financial stress to the construction industry. Costs of construction materials have skyrocketed, leading to cost overruns in several construction projects. Advanced techniques like predictive analytics have attained traction in the industry. By utilising historical data, machine learning techniques, and statistical algorithms, predictive analytics can recognise the likelihood of future events, as per Aditya Kushwaha, CEO and Director, Axis Ecorp, which is implementing data-analysis mandates for real estate projects. These models are presently also being utilised to ascertain the movement of raw materials costs. Image Source Also read: The domino effect of price rise on the construction industry

Next Story
Technology

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Next Story
Infrastructure Transport

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Next Story
Real Estate

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?