Proptech sector has seen remarkable 40% CAGR (FY 2011-24) growth that not only reflects investor confi- dence but also highlights its potential. The six disrupting technologies that are currently significantly impacting real estate are Software-as-a-Service (SaaS) / Cloud Computing, Artificial Intelligence (AI), Virtual Reality (VR) / Augmented Reality (AR), Internet Of Things (IoT), Robotic Process Automation (RPA) and Blockchain. These technologies are at the forefront of transformations of relationship between developers, investors, occupiers and employees, as per CBRE.
Broadly speaking, PropTech companies can be di- vided into two parts: consumer-facing in the B2B or B2C space and supply-facing in the B2B space. The country has more than 80 million Micro, Small and Medium Enterprises (MSMEs), and almost one- third of these can directly be linked to the real estate industry, according to Vipul Roongta, Managing Director and Chief Executive Officer (CEO) at HDFC Capital Advisors.
Segments such as shared economy, construction technology, and sales and marketing continue to dominate the PropTech space. The shared econ- omy and construction technology segments have emerged as leaders in the PropTech space, capturing 55% and 23% of the overall private investments in FY 2024, respectively. These segments continue to attract substantial interest and investment, reflecting their pivotal role in shaping the future of real es- tate, a study by Housing.com reveals.
As of year 2024, there are about four unicorns in the real estate space, which are likely to go up to at least 15-20 over the next 5-6 years, as per real estate experts. This is because real estate as a sector is rapidly growing and developers are increasingly adopting PropTech solutions for efficient project management and for reducing construction times.
