AI, Blockchain, IoT to Power $100-bn digital transformation in real estate

New Delhi, December 9, 2024: The Indian real estate market is projected to grow from $350 billion in 2023 to a staggering $1 trillion by 2030, driven by rapid urbanization, digital adoption, and innovative technological solutions, according to the AURUM PropTech report released at India PropTech Summit 2024. With urban population expected to reach 68 crore by 2047, the market is witnessing a fundamental transformation that extends far beyond traditional real estate paradigms. This population growth necessitates 230 million additional housing units.  

AURUM PropTech findings identified that two crore urban residents across top eight Indian cities are seeking rental housing, yet only eight lakh organized and institutional rental units exist. This imbalance offers a 25x opportunity to bridge the gap between demand and supply with PropTech-driven rental solutions. The influx of urbanization, changing consumption patterns of Gen-Z and millennials and rapid tech adoption are transforming residential rental real estate in India.  

The report further revealed that conducive regulations like Small and Medium Real Estate Investment Trusts (SM-REITs) are democratizing investments in real estate by allowing individual investors to participate in high-quality commercial assets. The regulation provides an opportunity to address financing of 32.8 Crore Square Feet SM-REITAble supply across the country.  

AURUM PropTech report also highlighted the tectonic shift in India’s real estate market, with digital platforms becoming the primary conduit for real estate transactions. An astounding 75 per cent  of homebuyers now rely on digital platforms, while half engage in virtual property tours. The Indian real estate market is witnessing a surge in demand for luxury and branded housing, coupled with significant growth in Tier-II and Tier-III cities. With annual real estate marketing expenditures reaching ₹38,000 crore, there is a clear and strategic shift towards allocating more resources to digital marketing channels.

PropTech 3.0, the decade of 2020, is further revolutionizing the industry through artificial intelligence (AI), blockchain, and immersive technologies like AR/VR, creating unprecedented opportunities for investors, developers, and consumers alike. AI applications are redefining customer engagement, marketing, and sales by offering personalized property recommendations and automated content generation. It also helps streamline transactions with AI-generated visualizations and enhanced customer service via virtual assistants.

Onkar Shetye, Executive Director, Aurum PropTech said, “The ongoing advancement in technology has embraced real estate across enterprises, consumers and service providers. The convergence of technology, changing consumer behavior, enterprise adoption and conducive regulatory framework are creating unprecedented opportunities for innovation and disruption. We look forward to capitalizing on these factors. “ 

He further added, “We felt the need to take initiative and create visibility for India PropTech- which offers a USD 100 billion opportunity across Real Estate Rentals, Distribution and Capital financing. This summit saw an assimilation of industry experts who engaged in discourse around the industry’s ongoing and future trends. Through thought leadership and networking, we aim to catalyze the growth in India PropTech.”