Do Data Protection Laws Hold the Power to Transform India’s Real Estate Landscape?

By Lodha

Data protection laws can profoundly impact the Indian real estate market. Such regulations protect consumer data and help real estate companies in India handle sensitive information with better care and transform the sector’s operational and marketing strategies. Recently, The Digital Personal Data Protection Act, 2023 (DPDP Act) was passed in India to bolster personal data security and transparency, seek user consent, and making real estate companies opt for robust privacy practices. Here is the overall effect such data protection laws can have on the real estate market in India:

Improved Data Collection Standards:

Just like other companies, Indian real estate firms also pool voluminous amounts of data to understand buyer preferences and manage relationships with their customers. Personalised marketing helps real estate companies match their customer base with the right kind of space. However, the DPDP Act ensures that consumers consent to their data being collected, processed, and shared with companies for marketing purposes. As a result, companies must practice clear communication to obtain consent before collecting data and expressly state the purpose of such collection. The Act also helps streamline data collection practices and make it easier for real estate developers to create a bank they can use to better market their projects.

Strengthen Cybersecurity:

Stronger data protection regulations also set up the infrastructure to secure consumer data. To make sure their customers’ sensitive and personal information stays safe, real estate companies are being encouraged to install cybersecurity measures. Real estate companies are complying by using methods like encryption and secure data storage to protect their customers’ data from breaches. With the kind of personal and financial data involved in real estate transactions, this emphasis on security is a welcome change for both developers and buyers.

Cost Implications:

Complying with data protection laws does incur additional costs. Real estate companies will have to invest in capital-intensive activities like audits, secure infrastructure, and hire specialised personnel. Investing in such security practices will increase the operational costs for developers and agencies. However, they will be able to offer their customers the benefits of secure real estate investments and build relationships steeped in trust.

Marketing and Engagement:

Real estate companies also use digital marketing, social media, and targeted advertisements to reach potential buyers. However, new regulations concerning user consent and data privacy will force companies to change their customer engagement. The DPDP Act restricts arbitrary digital marketing and asks firms to be more responsible and transparent with their advertising practices, prioritising customer choices.

Data Management and Retention:

Due to India's data protection laws, real estate firms must delineate clear data retention and deletion policies. According to the DPDP Act, organisations are not allowed to keep personal data longer than necessary. As a result, real estate companies will have to adopt structured data management practices that allow for greater operational efficiency and reduced storage costs.

Trust and Reputation:

Data Protection laws can also boost customer trust, serving as a real asset in the real estate market. Such trust is integral for developers to build long-term customer relationships and create a credible reputation. Firms that show a willingness and commitment to protecting customer data will stand out for the right reasons, especially amongst a rapidly digitised customer base.

Data protection laws could be the reason for a paradigm shift in the Indian real estate market and how users’ personal data is handled and protected by key players. At Lodha, we believe in putting our customers and their well-being first, including protecting their data. When you invest in a Lodha development, not only do you get to experience impeccable construction quality and unparalleled hospitality, but you can also rest assured that any sensitive information you provide us will stay secure and be managed as per laws designed to protect your privacy.

At Lodha, we help you build a beautiful life and stay safe in an ever-evolving digital world.