India's Proptech Investments Expected to Surge to $16 Billion by 2030
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Mumbai, Dec 2 (NationPress) Fueled by the demand for affordable housing, proptech investments in the country are anticipated to experience an impressive 15 percent CAGR, escalating from $6 billion in 2023 to $16 billion by 2030, according to a report released on Monday.
The global proptech landscape witnessed investments totaling around $50 billion in 2023, with India holding the sixth position in terms of total funding secured. In the same year, proptech comprised 6 percent of all recognized Indian startups.
“Technology propels advancement across various sectors. The surge in investment towards proptech is revolutionary for India, enhancing the real estate sector while fostering sustainability. For an expanding economy like ours, PropTech is both advantageous and essential,” stated Shishir Baijal, Chairman and Managing Director of Knight Frank India.
The Indian real estate market, valued at $258 billion, contributes 7.3 percent to the country’s GDP of $3,540 billion.
Despite the substantial size of the sector, there exists an urgent requirement for affordable housing. Major urban centers have experienced swift urbanization and escalating property costs, rendering housing unaffordable for many, especially within the middle-income bracket.
“The increasing demand for urban housing, driven by young professionals, highlights the necessity for strategic infrastructure development, sustainable practices, and innovative technologies to establish affordable, future-ready living options,” remarked Nirupa Shankar, Joint Managing Director of Brigade Group.
Infrastructure advancement is vital for enhancing housing affordability. The nation has expanded its National Highway network by 60 percent in the past decade, which is connecting tier 2 towns and the outskirts of major cities to employment hubs, thereby accelerating the advancement of affordable housing.
Moreover, the incorporation of environmental, social, and governance (ESG) principles in real estate is becoming increasingly crucial.
Technologies such as IoT, smart sensors, and sustainable construction materials are contributing to the creation of greener, more efficient buildings.
“Technology will play a pivotal role in tackling the challenges associated with the supply side of affordable housing,” commented Vipul Roongta, Managing Director and CEO of HDFC Capital.
