Proptech Market Growth in India
Proptech is the intersection of property management and technology. The concept was first introduced in the 1980s when property managers started seeking better real estate management methods. However, in recent years, proptech has taken the real estate market by storm. According to a report by Deloitte, proptech companies hit an all-time high in fundraising in 2021. This is largely attributed to the increasing reliance on technology as a pandemic recovery measure. In this blog, we’ll brief you on the proptech market growth in India. Let’s delve in.
What’s the Deal with Proptech?
Proptech is a cutting-edge technology that’s revolutionising the real estate industry. This software aims to enhance building efficiency and elevate the user experience for tenants, buyers, and landlords. In other words, it’s a new way of doing things and providing services in real estate. To your surprise, proptech can also be called Realtech, Rectech, Commercial Real Estate or CRE among others. The very first proptech technologies in the 2000s were the ones that allowed you to list your piece of land or apartment online, remember? Today they have evolved into property management platforms for residential, retail and commercial properties. These platforms help streamline operations through the automation of routine tasks like handling maintenance requests. In addition, you can manage tenant relations and leverage data analytics to exploit market trends and investment opportunities better.
Proptech Market Growth in India- An Overview
According to a report by NAREDCO (National Real Estate Development Council), the Indian real estate sector is set to grow rapidly rate of 19.5% from 2017 to 2028. On top of that, the real estate industry contributes to around 6% of the country’s GDP. It can be further segregated into residential, retail and commercial real estate. As aforesaid, proptech is all about the marriage of property selling, renting and management with technology. It’s an innovative solution that facilitates property transfer and tenant management among others. As per a similar report by NARCEDO, the Indian proptech market is determined to grow at a steady rate of 9.6% from 2021 to 2025. Hold on, another fascinating fact about the Indian proptech market growth is the remarkable no. of startups thriving in the country. These budding enterprises are leveraging AI, ML, IoT and blockchain to realise the great Indian proptech dream.
In the next few sections, we’ll run you through the top 4 reasons propelling proptech market growth in India.
4 Reasons Behind Proptech Market Growth in India
#1 India’s Digitisation and Proptech Growth
The first reason is India’s digitisation. With more and more people gaining access to the Internet, the use of digital apps is on the rise. The real estate sector is not an exception and is leveraging this rapid digitisation and enhanced connectivity to offer services online. You can use mobile apps to search, rent and buy properties online. Moreover, you can even take a virtual tour of the desired property and communicate with the agent remotely through chat boxes. From the property manager’s perspective, technologies like AI-ML help in predictive analytics and property risk assessment.
#2 Indian Government’s Initiatives and Rising Proptech
The next reason for proptech market growth is the Indian government’s initiatives. Schemes like Pradhan Mantra Awas Yojana (PMAY) commit to making affordable housing a reality for the broader population segment. Furthermore, the commissioning of smart city missions has further stimulated proptech market growth in India. Have you heard about RERA (Regulation and Development Act)? Reforms like these aim to enhance transparency and consumer protection in the property sector. As an outcome, proptech companies are equipping businesses with the necessary tools to list their properties, manage them and comply well with the regulatory reforms.
#3 Covid 19 Pandemic and Its Aftermath for Proptech Market
Covid 19 pandemic must be bringing flashbacks. However, we’ll be discussing its impact on the property sector in India. Traditional property transactions were a big no-no due to the social distancing measures. This created a demand for virtual property tours, remote property management etc. Furthermore, a shift to remote work made companies embrace proptech solutions to manage their properties and access documentation from anywhere.
#4 Greater Funding to Proptech Startups in India
Finally, proptech startups are witnessing a significant investment from private equity firms, VCs etc. Housing.com released a report stating a massive overall funding of USD 3.42 B in the Indian Proptech industry as of June 2022. With such financial support, these startups are now spanning the length and breadth of the country from metropolitan areas to the suburbs.
Final Words
In essence, proptech market growth in India is in the ascendant. With the rapid urbanisation and digitisation, government initiatives and the aftermath of COVID-19, proptech adoption by real estate businesses is ever-increasing. This revolutionary technology has helped increase the efficiency and transparency in property management. If you have any further queries, feel free to connect.
Related Read:
What are Advantages of Property Technology Systems ( Proptech)?
What’s the Role of Digital Facility Manager?
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