House sales are anticipated to increase in 2023 and India is likely to expand its scope for real estate technology. The market value of proptech is pegged to touch $1 trillion by this year.
Housing demands are expected to increase in 2023 and along with expansion of property sales on digital platforms. Experts claim proptech companies will gradually improve as real estate deals are constantly onboarding on digital platforms.
Digital platform for initial search and to narrow down choice
The pandemic had encouraged online home buying, but real estate deals have not entirely shifted to digital platforms across the world, including India. Consumers use digital platforms for initial searches and discovery, but they prefer to deal in person. Digital platforms help people to narrow down searches. Big investments like a home are not done on impulse and buyers are still attached to the traditional habit of physical site visits as they require the tangible essence of touch and feel.
House-buying will remain hybrid
People are rapidly adopting the concept of touring their future homes through immersive virtual tours with the idea of making an online booking, looking at the convenience, security, and transparency of digital payment platforms. But they still prefer to sustain in offline mode to get maximum information relating to crucial fact checks like due diligence or quality inspection of the property. Buying homes on the internet is still in its beginning stage and will take some time to become a reality.
Like major economies in the world, the rate of technology adoption in India’s real sector is still in its initial phases. Although, the proptech sector has grown significantly over the last two years and the momentum will continue to unravel in the coming years. From search and discovery to transactions, planning, and design to construction techniques, rental and property management, Proptech has already impacted every aspect of real estate. Stakeholders claim that proptech companies may experience continuous growth by 2023. The sector might see more partnerships amongst key stakeholders such as property advisors, private equity investors, developers, and technology solution providers. The IoT, AI, blockchain, Augmented reality, and hospitality tech all are growing in popularity along the protech value chain. Meanwhile, the IPO and valuation-driven approach may slow down, which we have been witnessing in the past. The unit economies will be more focused along with creating solutions for numerous issues.
Technology widened the sectors scope
Increasing homeownership demands have positively impacted proptech. PE funding has already a higher base in H1 2021 and additionally increased by five percent in H1 2022. The proptech sector had a progressive momentous in 2022 which widened the scope from only property aggregators to Virtual Reality platforms for virtual site visits enhancing the sale process, robotic inspection at the construction site, and advisory and transactional support for investors. Co-living platforms are improving with numerous offices opening up.
Proptech reducing management and operating costs
Consumers are adopting proptech to reduce operating costs. The implementation of technology led to better searches and smarter decisions. AR/VR, 3D tours and drones to facilitate better search and discovery of properties, big data, AI, ML, blockchain for secure and transparent transactions, and Analytics to understand consumer behavior and assess current trends and risks, are some of the trends that will drive proptech in India. While the leaders are experimenting with metaverse which is a new trend, it will unlock exciting opportunities for consumers in the future to buy real estate and make digital wallet payments. All these exciting developments have increased investors’ interests around the growth of proptech, with the market expected to touch USD 1 trillion by 2030.”
Indication of improving proptech in Indian real estate
Indian real estate had experienced some chaotic times for the past couple of years, however, it has recovered and grown across demand, supply, sales, prices, and capital investments in 2022. The real estate industry is moving to the data-focused strategy and progressing with generating numbers of clients for the AI application. Incorporation of new technologies such as AI to assess client behavior and monetize the services in accordance with new-age client demands. By 2030 The Indian real estate sector is predicted to touch $1 trillion, up from $200 billion in 2021, and it would account for 13% of GDP by 2025. This is mostly due to the rising demand for homes brought on by increasing urbanization and rising personal disposable income.