The push for the digitisation and growing stakeholder confidence during the pandemic has manifested into the bull run of private equity investments in the PropTech firms, which reached an all-time high of USD 0.7 billion in 2021 according to Housing.com’s PropTech India Monitor 2022 report. This high-water mark comes after a record-high year of private investments in the PropTech, which had reached USD 0.5 billion in 2020. With this, the PropTech industry in India has received a total of USD 3.2 billion in private funding between 2009 to 2021. Investments in PropTech grew at an impressive 55 per cent (CAGR) between 2010-2021, compared to a 20 per cent growth in total private equity investments received across industries during the same period. Our analysis indicates that the tech firms under construction technology and, sales and marketing, led the PropTech rally in 2021, accounting for 69 per cent of the USD 0.7 billion investments received during the year.
In 2021, the private equity inflow in property management firms increased five times YoY, reaching a new high of US $98 million. The growth comes on the back of an increased need for operational efficiency to improve the consumer experience, bear proactive maintenance, enhance energy efficiency and monitor the building systems. Also, the rise in importance of safety and security during the pandemic has brought focus on such smart property management systems where people can authorise entries, pay bills, and facility managers can automate and simplify manual processes of handling offices and residential communities, all while conforming to the prerequisites of social distancing.
As residential communities and workspaces continue to adopt digital property management services, such platforms have started to integrate allied services such as grocery delivery, home services like house help and appliance repairs, movers and packers and also diagnostic testing services as health has taken centre stage. Such online property management firms are also tying up with sales and marketing companies, which are now moving towards providing a full-stack model, where both sellers and buyers can access all the services related to real estate on one comprehensive platform.
Renuka Kulkarni, a seasoned real estate professional, brings over five years of diverse experience in research, consulting, and architectural design within the urban sector. Her expertise spans public and private projects, showcasing proficiency in real estate research, trend interpretation, and policy analysis. With qualifications in architecture and a master’s degree in Data Science (Business Intelligence & Data Analytics) from IIIT Bengaluru, along with an M. Tech in Urban Development and Management from TERI School of Advanced Studies, New Delhi, Renuka seamlessly blends data analytics with market insights, offering a holistic understanding of the industry in her research pieces.
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