Proptech has completely transformed the Indian real estate sector, with the proptech industry forecasted to grow to a whopping $1 trillion by 2030 in terms of its market size. Hence, it can keep creating unicorns of the future according to several experts. According to Vivek Agarwal, the Co-Founder and CTO, Square Yards, Proptech is completely transforming perceptions related to buying homes through empowering customers at every stage of the real estate journey with innovative and efficient technology solutions.
He also feels that VR/3D tours are enabling experiential property searches, while enabling locational intelligence and a more visceral sense of any property, which is building better emotional engagement. Vivek Agarwal also states that this sheer convenience has also shifted to transactions, where secure online payment gateways, real-time selection of inventory, e-signatures, and e-payments have led to hassle-free and swift real estate transactions.
He also opines that the combination of technology and real estate is revamping the industry rapidly with better solutions. However, there is still some resistance towards this change and also to the quick adoption of technologies. Minimal awareness and education about the potential advantages that Proptech offers and higher costs may be a barrier for smaller businesses according to him. He also states that compatibility issues across technology platforms to enable easy integration is another obstacle that may lead to realty businesses shying away from joining the technology revolution and changing their current operational models. He also states that embracing such technology is also not an easy task for amateur realty businesses since it requires an ecosystem of industry professionals, technology providers, expert resources, and investors. Many businesses lack the support, infrastructure, and expertise to enable these collaborations.
The Proptech industry is steadily growth though, and has already crossed USD$4 billion in cumulative investments with a 49% growth rate from entering the sector in 2009. It is poised to hit USD$100 billion in size by 2030 as per reports, with its growth driven by the rise of Indian real estate to USD$5.8 trillion by 2047. Vivek Agarwal states that Proptech has seen rational growth worldwide in terms of latest technological innovations and adoption. He also feels that the younger generation’s increasing interest in real estate tech, active investor bases, and robust realty start-up ecosystems throughout the U.S. and western markets have spurred considerable investment growth over the years. Yet, the Proptech sector is still finding a foothold in the Indian realty market, although he finds the commitment from stakeholders heartening with regard to the adoption of suitable technologies for enhancing procedural efficiencies and competitiveness.
He also states that Square Yards is pioneering innovation in real estate technology, right from developing a full-stack digital platform that has changed the way real estate is purchased or sold to even gamifying experiences with digital twins and 3D walkthroughs. He adds that Square Yards has ushered in more order and convenience into a property market that is otherwise fragmented. He also added that the brand is also developing AR-based 3D landscaping of the built world throughout leading cities with more interactive 3D digital twins of every development in these cities. Users can easily immerse themselves in the project Metaverse, viewing interiors and projects in actual scale with their chosen avatars. It will eventually help governments, developers, and architects build digital selling experiences according to him.
He also states that there should be a unanimous consensus amongst all stakeholders for digitization of real estate inventory. This will enable search and discovery platforms to turn into platforms from ecommerce, transforming housing into a service from a product. Big tech companies like Square Yards will offer similar real estate efficiencies like those brought to retail by Amazon, Flipkart, or even BookMyShow. He also states that the industry is at a tipping point in this regard, although how this eventually unfolds is a matter of time.
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Published Date: Oct 21, 2023
