Home sales are anticipated to witness a steady rise in 2023 and the country is already witnessing higher adoption of technological advancements in real estate. The market value for proptech is currently expected to reach $1 trillion by the year 2030 as well. Experts feel that proptech will witness better days with more people shifting towards digital platforms for selling and buying real estate.
People are steadily adapting to new-age virtual home tours, online bookings, and digital payments. Yet, they still prefer offline methods for inspections, due diligence, and so on. While technological adoption is still in its infancy in the Indian realty sector, the proptech segment has witnessed growth over the last two years, and this will continue in the future as well. Proptech companies will grow steadily throughout 2023, with more partnerships likely between developers, tech providers, PE investors and advisors. There will be more interest in blockchain, IoT, AR, AI, and more such advanced technologies.
PE funding has gone up by 5% for H1 2022 as compared to H1 2021 based on reports and proptech has seen higher scope expansion to VR platforms, robotic inspections, and even transactional/advisory support for investments, while co-living has also picked up again. The Principal Partner and Head of Engineering, Square Yards, Deepak Kushwaha, states that 3D tours, VR/AR and drones for enabling superior property search and discovery, AI, big data, and ML for more understanding of consumers and analysis of present risks and trends, and also blockchain for safer and more transparent transactions will be major trends driving the proptech segment in the country. He also feels that while Metaverse is still new and its possibilities are being explored, it will ultimately open up newer possibilities for purchasing real estate and also payments from digital wallets in the near future. He feels that these are exciting new developments which have already boosted investor interest in proptech and its growth, with the market poised to reach USD$1 trillion by the year 2030 as well.
Indian real estate is swiftly adapting to a strategy that is more data-based and AI is being increasingly applied across various sectors. The real estate sector will account for 13% of India’s GDP by 20254 as per reports and this may be due to higher residential demand on account of growing disposable income and quick urbanization throughout the country alike.
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Published Date: Dec 23, 2022
