How big is the PropTech Industry in India?

According to a report from the online real estate portal Housing.com, India's PropTech industry raised more than the US $ 551 million in 2020, up from a total of US $ 549 million in the previous year. The

Elara Group's online real estate advisory portal report states that even the slightest uptrend is significant given the unprecedented challenges the world faces in 2020.

So far, $ 2.4 billion has been invested in the Indian PropTech industry and there are 225 transactions on the day.

The report integrates the growth of this segment with the fast-growing middle class, rapid urbanization, technology adoption, and Internet user-based growth of over 500 million users, young demographic-based and gradual integration. We believe that it is due to the real estate environment that is being used.

During the blockade and the subsequent gradual opening of the economy, most buyers completed their purchase of real estate via virtual media. This is possible because, since 2010, companies have invested heavily in the Proptech segment, allowing buyers to complete their real estate purchases with less effort than ever before. If these platforms were popular just to find and close properties in the pre-pandemic era, the pandemic changed that a lot, "said Dhruv Agarwal, CEO of Housing.com.

As the use of technologies such as virtual reality, drones, big data, and artificial intelligence in home purchases increases, this segment could see a significant rise soon. This is reflected in the fact that domestic real estate is projected to reach a $ 1 trillion market by 2030.

However, the report also states that many of India's real estate brokerage businesses are still operating in offline mode and are worth the US $ 1.4 billion (US $ 1.4 million).

After surpassing $ 500 million in 2018, the report closed $ 530 million worth of transactions this year, and the PropTech segment's trading volume continued to grow to $ 551 million in 2020. Despite the challenges, the transaction value of this massively growing sector exceeded $ 550 million in 2020 and the total investment of $ 549 million in 2019.

Real estate investment inflows are growing at a CAGR of 10% and PropTech has been in the blue-chip segment ever since. In 2010, it is growing at a strong CAGR of 57%.

Due to its earning power, commercial living space will also account for the majority of total investment in 2020. The share of investment in the segment increased significantly from 25% in 2015 to 62% in 2020.

This is primarily due to profitable assets such as offices, warehouses, and shopping malls. Real estate investment trusts also help make commercial real estate the most popular among investors around the world.

In contrast, the share of the housing segment fell to just 2% in 2020, compared to 61% in 2015. Several factors are involved in reducing investor interest in the housing segment. Investors are moving away from the residential real estate segment due to sluggish demand, high capital value, construction delays, and the NBFC blunder. PE investment in the

Shared economy accounts for the majority of the pie at 48% compared to sales and marketing (18%), but the average transaction size is significantly smaller than the latter. In 2020, the average transaction size for the sales and marketing segment increased to $ 70 million, compared to the $ 33 million sharing economy over the same period.

In conclusion, PropTech is bigger than ever in India and will continue to grow as we see more companies emerge and capitalize on the FDI and government support. Capitalism is always a progressing cycle. In today's world of rapidly evolving technology, Smart Cities are an obvious and justifiable step. There are numerous examples of startups emerging to take advantage of this growing money-sphere too which is an extremely exciting prospect for anyone involved with PropTech in India.