Real estate, an age-old and sizable asset class, stands as a key indicator of economic health and is deeply intertwined with investor emotions. Over the years, the real estate industry has witnessed transformative innovations and is now poised for even greater growth with the rise of a new class of newly-wealthy individuals and the introduction of innovative business models, propelling India towards becoming an upper-middle-income economy. This presents exciting new opportunities within the real estate sector.
The Indian real estate industry has undergone significant growth and remarkable innovation in recent times. Statistics indicate that a staggering 95% of buyers commence their property search online, with 51% eventually making their purchase through digital platforms. Since the launch of the Startup India Campaign in 2015, the number of PropTech startups has surged from a mere 2 in 2016 to an impressive 1,400 in 2022. Projections suggest that the real estate sector will contribute 13% to the country's GDP by 2023, with an estimated market size of $1 trillion by 2030.
The emergence of PropTech has driven transformative changes within the industry. For instance, the implementation of the RERA Act has significantly bolstered regulations and buyer safety by fostering transparency in property transactions.
Now, let's delve into the prevailing trends reshaping the PropTech landscape:
- Virtual and Augmented Reality: The advent of PropTech has revolutionized property viewing through the integration of Virtual Reality (VR) and Augmented Reality (AR) technologies. Potential buyers can now take immersive virtual tours of properties from the comfort of their homes, offering a realistic and interactive experience. This enhanced visualization aids customers in making better-informed decisions, thereby elevating the overall buying experience.
- Artificial Intelligence and Big Data: The convergence of Artificial Intelligence (AI) and Big Data analytics is transforming data analysis and utilization. PropTech organizations can harness vast amounts of data, including property age, market trends, demographics, etc., to provide accurate insights that benefit both buyers and sellers. AI is also instrumental in handling customer queries efficiently and delivering personalized assistance.
- Blockchain for Secure Transactions: Blockchain technology has emerged as a major trend in the real estate market, streamlining and securing property transactions. By leveraging blockchain's distributed ledger system, the process becomes more transparent, reducing costs and paperwork, and eliminating the need for intermediaries. This facilitates smoother transactions for all parties involved.
- Internet of Things (IoT): The concept of smart homes is gaining significant traction in India. The Internet of Things (IoT) has led to the proliferation of smart home devices, such as appliances, lighting systems, security cameras, and voice-controlled assistants. These interconnected devices enhance comfort, convenience, and energy efficiency for homeowners. Integrated with property management systems, IoT also improves safety and reduces maintenance costs.
- Shared and Co-living Spaces: Shared and co-living spaces are becoming increasingly popular among millennials and Gen Z due to their affordability and community-driven environment. PropTech platforms like Aurum and Nestaway offer real-time solutions through mobile apps and platforms, catering to the rising demand for such spaces.
Conclusion:
PropTech is driving a constant transformation within the Indian real estate industry. The emerging trends in PropTech, encompassing VR/AR, IoT, and more, are reshaping the sector and fostering a customer-centric approach with enhanced transparency.
As PropTech continues to evolve, the Indian real estate industry can anticipate a more seamless and efficient future, benefitting buyers, sellers, and investors alike. Embracing these technological advancements and innovations will be essential for real estate businesses to meet the evolving demands of the new generation of property stakeholders.
https://bwdisrupt.businessworld.in/article/The-State-Of-PropTech-In-India/23-05-2023-477623/
https://elevationcapital.com/summit/insights/unlocking-value-india-proptech