Today, technology is the primary driver behind boosting overall well-being and driving important economic indices in India due to the country’s growing urbanization and digitization in every sector of the economy and daily life. The quick uptake of technology has also created new opportunities that hold great promise for upending established markets. One industry that is well-positioned for technological upheavals and digital revolutions is the Indian real estate market, which has recently seen a rise in disposable income. Proptech, the property technology is one such digital revolution under the real estate sector that has growing demand. The study examined the different challenges faced by the developers and users in the Property technology in the Indian real estate sector. The results showed the lack of awareness amongst the users to embrace the new technologies and more inclination to choose a home via traditional methods.The results of the study suggests the lack of regulatory and compliance frameworks in place, which is penetrating into the developer’s mindset. Education and awareness about the system and standard regulations across the country needs to be implemented to help developers and users make better decisions.
Developers and builders have embraced these technologies such as providing a one stop solution to home buying remotely, quick comparison between properties of similar nature, digitization of records to improve transparency etc. However, challenges still exist in terms of overcoming the obstacles faced in regulatory and compliance, awareness about the potential of technology and the role its plays in making the system more transparent.
Proptech, or property technology, is the fusion of digital solutions, software, and technology with the real estate sector to optimise property administration, marketing, research, and sale-purchase processes. In the Indian real estate market, proptech is a relatively new but exciting area since cross-industry technology could eventually change how
In the end, cross-industry technology will change how we interact with and access the Indian real estate market, making proptech a young but promising segment of the market. India’s ambitious goal of having a USD 5 trillion GDP by [2025] is predicted to be greatly aided by innovations and disruptions in the real estate and construction sectors. The industry is further subdivided into Residential and Commercial Real Estate, which together with Sustainability, Finance, Sales, and Construction, represents technological unification.
In developing (Tier-II and Tier-III) cities, internet penetration and digitization are becoming commonplace. Proptech and related subsectors have enormous potential to unlock real estate potential in both rural and urban areas and promote comprehensive localised growth.
More than 6% of all recognised startups in India are Prop Tech companies. With roughly USD 89.1 million raised over the course of sixty-six rounds, the nation is ranked fourth globally (for this industry). Among the most well-known brands in this sector are 99acres, Magicbricks, and Nobroker, which enable agents, buyers, and sellers to communicate and share real estate information with the push of a button.
The anticipated surge in the industry can be attributed to several nascent patterns, including the swift proliferation of co-working and co-living spaces, the increasing influence of social media, technological breakthroughs in blockchain, machine learning, and artificial intelligence (AI), and modifications in building techniques and materials. At the moment, the real estate industry makes about 6-7% of the GDP of the nation.
The Indian Brand Equity Foundation (IBEF) estimates that by 2030, the industry might be worth more than $1 trillion, and by 2025, it might be worth around 13 percent of India’s GDP (Gross Domestic Product).
A number of programmes and missions of the Ministry of Housing and Urban Affairs (MOHUA) have also been designed to support sector-focused growth and the Made in India campaign. In order to alleviate the shortage of urban housing among the Middle-Income Group (MIG) and Economically Weaker Section (EWS)/Lower Income Group (LIG) and Slum Dwellers, the Pradhan Mantri Awas Yojana – Urban (PMAY-U) was introduced. A Housing Technology Sub-Mission (TSM) was established under this programme in 2021 to aid in the adoption and promotion of contemporary, environmentally friendly, and disaster-resilient technologies.