The Indian real estate market has undergone a significant transformation in the past few years. From brick-and-mortar broker offices to digital marketplaces, the industry has witnessed a shift towards technology-driven solutions. Proptech, a term that describes the use of technology in real estate, is revolutionising the way real estate is bought, sold, and managed, and has made the sector more efficient, transparent, and customer centric.
Streamlining real estate processes: With the emergence of proptech, buying, selling, leasing, and investing in real estate has become completely digitalised; starting from a decade ago when websites that just had property listings, to now, where it has become commonplace for a property to be sold using virtual tours. As a result of increasing demand for both residential and commercial spaces in India and the growing use of technology, the Indian real estate market is expected to reach $1 trillion by 2030.
Emerging technologies changing the face of real estate: One of the significant developments in proptech is the use of Virtual Reality (VR) and Augmented Reality (AR) in the selling and leasing of property. Almost all builders’ and brokers’ websites now offer a video walkthrough of the property and surrounding areas, which can be viewed from the comfort of one’s home. This technology has made it possible for buyers to browse multiple properties without physically visiting them, saving time, effort, and money. According to a report by Anarock, the virtual reality market in India is expected to reach $1.6 billion by 2025.
When this is combined with the use of Big Data, Artificial Intelligence (AI) and Machine Learning (ML), builders, property managers, and brokers are able to target and personalize marketing and advertising based on user preferences, budgets, and use cases.
Advances in AI now include generative artificial intelligence (AI), a powerful technology that is making waves across industries with the ability to create new and realistic content, generative AI is being used to design and visualise architectural spaces, interior designs, and even virtual staging of properties. Generative AI adds another dimension to the transformative potential of Proptech, enabling creativity and innovation in the sector. According to a report by IMARC Group, the AI market in India is expected to reach $3,935.5 million by 2028, exhibiting a growth rate (CAGR) of 33.28% during the period 2023-2028.
AI and ML are also being used to analyse vast amounts of public and private property data, providing valuable insights and predictions to real estate professionals. By analysing data such as location, demographic trends, and economic indicators, AI can provide insights into which types of properties are likely to be in demand in the future. This can help developers and builders make more informed investment decisions and create properties that are in line with market trends.
Blockchain technology has also made its way into the real estate industry, providing a secure and tamper-proof platform for property transactions. By using blockchain technology, the process of transferring property titles and ownership is simplified, reducing the risk of conflicts and fraud.
Property management software is being used in residential and commercial establishments, enabling users to interact with property managers or landlords via a seamless digital experience, enabling better security, booking of facilities or experiences, and holistically managing their homes or offices from their smartphones.
Aggregators have also enabled new forms of space-sharing such as co-living, home rentals, and vacation rentals. These platforms provide a more flexible and cost-effective alternative to traditional rental models, especially for millennials and young professionals.
Proptech is also making a significant impact in sustainability by using Internet of Things (IoT)-enabled sensors to monitor and reduce the wastage of water and electricity, manage waste, and ensure good air quality in residential and commercial buildings. According to a report by ResearchAndMarkets, the smart home market in India is expected to reach $12.6 billion by 2026.
Despite being a relatively underfunded market, proptech has witnessed a significant growth in investor interest and funding amounts in the past decade. According to a report by Real Estate 3.0: Technology-led growth, investments in proptech companies are expected to touch $1 billion in 2025, almost double that of 2020, while historically, it has been considered to be a fragmented sector run by traditional practices, real estate is experiencing its inflection point with large-scale adoption of digitalization and deep tech by builders, brokers, and users.
The emergence of proptech has transformed the Indian real estate industry, making it more accessible, efficient and sustainable, and increasing investor interest and funding amounts indicate a growing recognition of the potential of proptech to transform the Indian real estate sector. As digital infrastructure and literacy continue to improve in the country, it is likely that the adoption of proptech will become more widespread, leading to further growth and innovation in the industry.
