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What does Proptech mean?
Proptech or property technology/real estate technology means the use of information technology to assist the potential buyers of real estate and the realty companies to connect, discuss, buy, sell and manage the real estate.
It can be defined as the "collective term used to define startups offering technologically innovative products/new business models for the real-estate markets".
The Origin of Real Estate Technology
Real estate technology got a boost during the dot-com boom in the late 90s and from there has been a steady growth in the online real estate business.
The next surge happened around 2008 with exchanging holiday homes and renting of houses and storage spaces. Airbnb was a major player that made it possible for homeowners to rent their properties
The present wave of proptech is the use of artificial intelligence and big data, and the pandemic just changed the way people dealt with real estate. When the movement of buyers and real estate agents got restricted, the usage of online apps soared.
Evolution of Proptech in India
In the early days, the proptech only focused on giving digital marketplaces for a listing of residential and commercial properties. It was a move to eradicate the intermediaries and contact the end user directly. Magic Bricks, 99 Acres, Housing and CommonFloor were the pioneers in India to effectively use proptech.
It also motivated other developers and entrepreneurs to follow suit. The competition increased and real estate business started shifting online and customers now demand more information access via apps or websites. This resulted in the old players in proptech to improver the online buying experience by differentiating their apps/websites by upgrading additional features and information.
The real estate industry which was usually resistant towards change is now witnessing real estate developers tying-up with full-stack proptech players to provide better access and service to customers.
How Indian Realty is Going to Change in Coming Years
India saw a surge in online business deals of properties. As per the report from Housing.com, proptech in India saw an investment of USD 551 million surpassing 2019's USD 549 million.
The Ease Proptech brings to the realty business
The proptech has brought artificial intelligence, virtual reality, machine learning, augmented reality and deep tech, taking home buying experience to another level. Developers have made the home buying experience more engaging via virtual home tours and understanding the location, structure and amenities available by themself.
Changing Scenario in Indian Market
A lot has changed in the past few years and that has led to the disruptive shift in the way Indian realty worked. The changes can be listed as below;
The fast-growing middle class
Rapid urbanisation
Introduction of 4G and 5G
Adoption of technology
Young population looking for housing and business
The Future of Indian Real Estate
Real estate is one of the largest employers in India is expected to contribute 13 per cent to India's GDP by 2025, according to the report by National Real Estate Development Council (NAREDCO).
Indian real estate is expected to grow USD 1 trillion y 2030 and become the third-largest market globally.
The pandemic has enabled the fast pace adoption of proptech by everyone, which was already popular with a major part of property buyers. Proptech has proved to be the way the real estate will be moving forward, and being a customer-centric convenient platform has removed the intermediaries and connecting the seller and end-user.
The developers can present tailor-made offerings to the customers using the tech, like interactive and engaging property information, providing real-time insights to developers and many more.
The demand for proptech seems to grow day by day and the customers and developers have already adjusted to the new way of property dealings.
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