PropTech Revolution: Transforming India's Urban Landscape and Real Estate Industry

Imagine two New York Cities being built in India every year—this is the scale of urban migration projected for the country, with 350 million people set to move to urban areas in the coming years. Amidst this transformation, PropTech is emerging as a disruptive force in the traditionally technology-averse real estate industry, unlocking unprecedented opportunities for innovation and growth.

In a recent discussion on Brick by Byte, a series presented by Mint in collaboration with Nucleus Office Parks, Vipul Roongta, Managing Director and CEO of HDFC Capital Advisors, delved into the expansive potential of PropTech in reshaping the real estate sector.

The Expanding Indian PropTech Ecosystem

India’s PropTech landscape is flourishing, with over 1,500 startups working to solve challenges in the real estate sector. These startups operate across a wide spectrum—from consumer-facing platforms that simplify home discovery to supply-side innovations in project management and construction.

“Housing serves as a vital engine for economic growth,” says Roongta. “With 152 components going into building a single house, the real estate industry directly influences numerous other sectors.”

In the B2B and B2C realms, PropTech companies are transforming how land is identified, homes are constructed, and post-sales services like CRM, parking, and facility management are handled. For developers, technologies now address the entire lifecycle of a project, from design and construction to sales and possession.

Technology as a Game-Changer

The Indian government has been instrumental in digitizing land records, significantly improving transparency and reducing legal bottlenecks. "A digitized framework for land titles has made the process cleaner and more efficient," notes Roongta.

Beyond legal frameworks, PropTech innovations have brought transformative changes to construction technology. Digital tools enable better planning, reduce timelines, and promote standardization, particularly for affordable and middle-income housing.

Selecting Startups with Genuine IP

HDFC Capital, which recently broadened its scope from private equity to include affordable real estate technology, emphasizes the importance of originality in startups. “A lot of startups replicate successful global models without creating original intellectual property. We prioritize innovation and genuine technology solutions,” Roongta asserts.

Through the launch of HARD (HDFC Affordable Real Estate and Technology Platform), the company is nurturing startups that can address critical inefficiencies in construction and real estate management. Events like Ecothons bring together academia, industry players, and financiers to identify and solve real-world challenges.

Driving Scale and Affordability

One persistent challenge in real estate is delivering affordable housing on time. PropTech solutions play a crucial role here by enabling scale, which reduces production costs and ensures timely delivery.

“Affordability isn’t just about cost,” says Roongta. “It’s about efficient planning, standardization, and leveraging scale to bring down prices.” Despite a growing demand for premium housing, affordable units remain the cornerstone of India’s real estate market.

A Promising Future

The PropTech sector in India is poised for explosive growth. Currently, with only four unicorns in real estate, Roongta predicts this number will climb to 15-20 in the next five to six years.

As real estate’s contribution to India’s GDP rises from 8% to an estimated 14-15%, PropTech will be pivotal in driving this growth. The sector’s ability to address urban challenges while fostering innovation cements its role in India’s economic transformation.