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PropTech Firms Garner $4.6 Bn Investment in Last 14 years, Reflect Resilient Growth Since FY 2011: Housing.com Report

New Delhi, June 6, 2024: The PropTech sector has demonstrated remarkable resilience from FY 2011 to FY 2024, with investments in India accumulating a total of USD 4.6 billion, growing at a compound annual growth rate (CAGR) of 40%. This rapid growth underscores the transformative impact of technology on the real estate industry, driving efficiency and innovation, as mentioned in the Annual PE Investment Round-Up report by Housing.com.

Despite global economic uncertainties, funding in PropTech firms experienced only a slight dip in FY 2024, with investments totalling USD 657 million, down from USD 683 million in FY 2023. This figure represents 90% of the record high of USD 730 million investment received by the PropTech sector in FY 2022.

The Shared Economy and Construction Technology segments have emerged as leaders in the PropTech space, capturing 55% and 23% of the overall private investments in FY 2024, respectively. These segments continue to attract substantial interest and investment, reflecting their pivotal role in shaping the future of real estate.

Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com, stated, “In the face of global uncertainties and a general downturn in fundraising across sectors during the last couple of years, the PropTech sector has shown remarkable resilience. Since FY 2011, it has sustained an impressive CAGR of 40%. In FY 2024, it achieved its highest-ever average deal size of USD 27 million, reflecting robust investor confidence in the digital real estate space. Over the past decade, and particularly in the last three years, the real estate sector has significantly advanced in embracing innovative technologies. This positive momentum is expected to continue, driving further advancements and efficiencies in the real estate market.”

The report further highlighted that PropTech companies specializing in construction technology solutions received 23% of the total funding in FY 2024. This trend underscores real estate developers’ increasing focus on reducing construction times while upholding high-quality standards. In countries like India, where prolonged construction cycles drive up project costs, PropTech solutions are being increasingly adopted for efficient project management. Additionally, the coworking segment has experienced rapid expansion over the past three years, fueled by the growing demand for flexible workspace solutions from corporations.

Ankita Sood, Head of Research at PropTiger.com and Housing.com, commented, “The rise of PropTech is rewriting the industry’s narrative in India’s traditional real estate sector. While real estate assets have seen modest growth, with a 2% CAGR (FY 2011-24), the remarkable 40% growth of PropTech not only reflects investor confidence but also highlights its disruptive potential and scalability. Cumulative investments in PropTech have reached USD 4.6 billion, with 68% of this influx occurring after 2020, driven by the pandemic-induced digital acceleration. Segments such as Shared Economy, Construction Technology, and Sales and Marketing continue to dominate the PropTech space. As the industry continues to navigate the digital frontier, the convergence of technology and real estate promises a future marked by unprecedented opportunity and evolution. Not merely a passing trend, it’s a fundamental restructuring of an industry long overdue for innovation.”

PropTech Investments in India

*Investments include private equity, venture capital, debt, PIPE (Private Investment in Public Entity), private equity investments in Special Purpose Vehicle (SPV), project-level investments, pre-IPO PV deals and buyouts.

Source: PropTech – A report on PropTech investments in India 2024, Housing Research

Segment-wise share of investment inflow in PropTech in India – FY 2024