As more and more homebuyers in India plan and execute their property purchases through virtual platforms in the aftermath of the coronavirus pandemic, the PropTech industry in India attracted over $551 million in 2020, surpassing the aggregate of previous year – $549 million, shows a report by Housing.com.
The report titled ‘PropTech: The Future of Real Estate in India’ shows that investments in the PropTech segment grew marginally up to $551 million in 2020 from $549 million in 2019. However, even the marginal upwards movement could be termed as significant, considering the unprecedented challenges the world faced during 2020. More importantly, investments in the segment during the year were at their peak in 2020 since tech-based start-up companies in India began entering the real estate segment in India, starting 2000s.
So far, $2.4 billion have been invested in India’s PropTech industry across 225 deals as on date, the report says.
The report attributes the growth in the segment to a fast-growing middle class, rapid urbanisation, the adoption of technology, an increasing internet user base of over 500 million users, a young demographic base and a gradually consolidating real estate canvas.
“During the lockdown and the subsequent phased opening of the economy, most buyers concluded their property purchases using virtual mediums. That was made possible because since 2010, enterprises have already been investing heavily in the Proptech segment to enable buyers to conclude property purchases with fewer efforts as applied traditionally. If these platforms were only popular to find and finalize properties in the pre-pandemic era, the pandemic has changed much of that. It is also pertinent to mention here that housing markets in India would have taken an even more severe hit because of the virus outbreak and its effects, had the PropTech industry not been gradually growing in the country,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.
“While pointing out that growth of the industry in the Asian region has yet to reach a level seen in their western counterparts, the report also points out that online business platforms that have been on the radar of investors since 2009, have evolved since, from being mere mediums for digital classifieds to offering full-stack solutions towards discovery, advisory and transactional support, with this and ever evolving technology, the new decade belongs to PropTech,” added Agarwala.
The segment is likely to see a tremendous boost in the near future amid growing use of technologies such as virtual reality, drones, big data, artificial intelligence in home purchases. This is expressed through the fact that real estate in the…