Proptech Segment in Indian Real Estate Expected to Skyrocket, Reaching $600 Billion by 2047
In a joint report by Credai and EY, it has been revealed that the proptech segment within the real estate market is set to witness an exponential growth in the coming years. The study projects that the market size for proptech will reach a staggering $600 billion by 2047, up from the current $10.5 billion. This impressive surge is primarily attributed to a technological revolution impacting the real estate sector.
A Promising Future for the Real Estate Sector
Not only is proptech expected to flourish, but the broader real estate sector as a whole is also anticipated to surge. The report forecasts a market value of $4.8 trillion for the real estate sector by 2047, compared to its present value of $300 billion. This significant growth is projected to contribute over 18% to India’s GDP target of $26 trillion by 2047.
Low Current Penetration with Massive Future Potential
The report emphasizes that the current penetration of information and communication technology (ICT) and proptech-based solutions in the real estate industry is relatively low, standing at $10.5 billion, which is less than 5% of the total market size. However, the future of proptech is bright, with the segment projected to reach $600 billion by 2047, making up around 12-13% of the overall real estate market.
Role Transformation: From Supportive to Essential
Proptech is no longer limited to a supporting role in the real estate sector. It is now a key growth driver, enabling innovation and transforming operations within the industry. The report highlights that advancements like Artificial Intelligence (AI), the Internet of Things (IoT), and Building Information Modelling (BIM) are revolutionizing the real estate sector. These technologies are streamlining automation, enhancing operational efficiency, reducing costs, and improving margins across the entire real estate value chain.
The Impact of Artificial Intelligence (AI)
Artificial Intelligence (AI) is increasingly being implemented in various areas of the real estate sector. With AI-powered analytics and algorithms, developers and investors can make data-driven decisions regarding pricing, market trends, and investments. AI also helps automate and optimize operational processes, enabling efficient property management, personalized customer experiences, and predictive maintenance.
Revolutionizing Operations with the Internet of Things (IoT)
The Internet of Things (IoT) has transformed the way properties are monitored, managed, and maintained. Connected devices, sensors, and integrated systems enable real-time monitoring of utility usage, security systems, and facilities. This not only improves operational efficiency but also enhances transparency for occupants or tenants.
Streamlining Construction with Building Information Modelling (BIM)
Building Information Modelling (BIM) has revolutionized the construction industry by enabling collaborative design and simulation. This technology allows stakeholders, including architects, engineers, and contractors, to work on integrated models, minimizing errors and improving productivity during the construction process. BIM also facilitates better communication and coordination among project teams, resulting in timely and cost-effective project completion.
In Conclusion
The real estate sector in India is on the brink of a technological revolution. Proptech, driven by cutting-edge advancements like AI, IoT, and BIM, is expected to grow exponentially, reaching a market size of $600 billion by 2047. This significant growth presents immense opportunities for developers, investors, and other stakeholders within the industry. By capitalizing on proptech solutions, the real estate market in India can realize its true potential and contribute significantly to India’s economic growth in the coming years.
