Property tech that is changing the real estate industry in 2025

Discover how Property Tech (PropTech) is revolutionising the real estate industry and reshaped how we think about property.

The real estate industry has historically been slow to embrace digital transformation. But the tide has turned. Today, Property Technology, often called PropTech, is ushering in a new era defined by speed, intelligence, and transparency. Buyers, sellers, and agents alike are experiencing the benefits of smarter tools that simplify processes and reduce inefficiencies.

Through this article take a closer look at the technologies driving this shift.

 

See also: How smart home technologies are boosting property demand?

 

Artificial intelligence: The brain of modern real estate

Artificial Intelligence is changing how buyers find homes and how professionals analyse markets. AI-powered tools now provide personalised property suggestions based on a buyer’s preferences and online behaviour. These systems learn from past interactions, delivering results that are increasingly accurate and relevant.

Beyond matchmaking, AI is also making sense of complex market data. It helps investors identify high-return properties and forecast future price movements. Lenders and insurers use AI to assess risk faster, while agencies automate repetitive tasks such as lead generation, follow-ups, and document verification.

AI’s real strength lies in its predictive capabilities. Algorithms can estimate property values, highlight upcoming growth neighbourhoods, and even anticipate maintenance issues before they arise.

Virtual and augmented reality: Touring without travelling

Virtual reality (VR) and augmented reality (AR) have changed how people view properties. Instead of spending days or weeks visiting homes, potential buyers can take immersive tours using a phone or headset, experiencing every corner of a house as if they were physically there.

Augmented reality adds another layer of convenience. Through an app, users can visualise furniture in a room or preview renovations, seeing how changes would look in real time. This has significantly cut down the decision-making time for buyers and allowed real estate agents to cater to global clients without logistical headaches.

VR and AR are especially impactful in luxury and international markets, where buyers may not visit a property until final stages. They also offer inclusivity for individuals with mobility constraints who may struggle with in-person tours.

Blockchain: A new standard of trust

The real estate transaction process is often bogged down by paperwork, middlemen, and verification delays. Blockchain technology offers a way around these issues by creating secure, transparent, and tamper-proof digital records.

One major application is in recording property titles. Traditionally, title deeds require manual verification and can be vulnerable to fraud. With blockchain, these records are digitised and stored on a decentralised ledger, making them easy to verify and impossible to alter without consensus.

Smart contracts built on blockchain platforms allow deals to be executed automatically once pre-set conditions are met. This reduces reliance on third parties such as banks or lawyers, saving both time and money. In some countries, tokenisation of real estate assets has also allowed investors to buy shares in properties, increasing accessibility to high-value markets.

IoT and smart homes: Intelligence built into walls

The Internet of Things (IoT) refers to interconnected devices that collect and exchange data. In real estate, IoT is being used to build smart homes and commercial spaces that react to their environments.

For instance, smart thermostats adjust temperature based on occupancy patterns. Leak sensors can alert homeowners to plumbing issues before they cause damage. Security systems integrate motion sensors, cameras, and alerts into a single dashboard controlled by a smartphone.

In commercial buildings, IoT optimises energy usage, monitors air quality, and ensures predictive maintenance, reducing operational costs. This data is not only valuable to owners but also to prospective tenants or buyers who are prioritising health, sustainability, and convenience.

Big data and predictive analytics: Clarity from complexity

Data is everywhere in real estate, from listings and demographics to mortgage trends and zoning regulations. Big data tools help make sense of this information and turn it into actionable insights.

Developers and investors use data analytics to choose the best locations based on demand forecasts and infrastructure growth. Agents can refine pricing strategies based on comparative analysis of similar properties. Meanwhile, banks and insurance firms use predictive models to assess loan defaults or property value fluctuations.

These insights enable more confident decision-making and reduce the guesswork that has traditionally plagued real estate investing.

End-to-end digital platforms: Real estate at your fingertips

Online real estate platforms have evolved beyond listing pages. Today, platforms such as Housing offer a full ecosystem, including virtual tours, agent connections, mortgage pre-approvals, legal assistance, and even digital signatures.

This seamless integration reduces the number of touchpoints in a transaction. Buyers can research, compare, and close deals without stepping out of their homes. Agents, in turn, gain access to a wider market and can operate more efficiently with digital tools that handle scheduling, customer management, and reporting.

These platforms have become especially popular among millennials, who prefer mobile-first solutions and quick turnaround times.

 

Drones: Changing the view from above

Drones are not just for capturing scenic aerial shots. They’re now essential tools for real estate marketing and land surveying.

Aerial videos provide sweeping perspectives of properties, especially useful for large estates, farms, or commercial sites. In construction, drones help monitor site progress, detect safety issues, and provide updates to stakeholders without the need for physical site visits.

Their ability to capture data from difficult angles quickly and cost-effectively has made drones a valuable asset across both residential and commercial real estate projects.

Green technology and sustainable proptech

Eco-conscious living is a growing priority, and real estate is adapting accordingly. PropTech solutions now include energy tracking systems that monitor consumption in real time, helping residents make greener choices.

Smart grids, solar integrations, and automated waste systems are becoming standard in new developments. Moreover, property developers are using tools to calculate the carbon impact of construction projects and adjust designs to meet environmental targets.

Buyers and investors are increasingly considering sustainability ratings and energy certifications when choosing properties, adding long-term value to eco-friendly buildings.

PropTech’s impact on tier-2 and tier-3 cities

While most innovations in property technology are often highlighted in the context of metros like Mumbai, Delhi, or Bengaluru, a silent revolution is underway in smaller Indian cities such as Indore, Coimbatore, Bhubaneswar, and Surat. These cities are now experiencing a surge in real estate activity thanks in part to decentralised work culture, infrastructure projects, and the rapid penetration of digital tools.

What’s new?
Tier-2 and Tier-3 developers are beginning to use PropTech platforms not just for listings, but also to digitise construction updates, automate legal document processing, and engage NRIs looking for investment-ready hometown projects. Local brokers, once reliant on word-of-mouth, are now leveraging WhatsApp integrations, localised VR walkthroughs, and voice-enabled search features to serve a more mobile-first audience.

This adoption is democratising access to quality property insights, removing the information gap that often existed between metros and smaller towns.

 

Cybersecurity in PropTech

With so much data flying between cloud systems, mobile apps, IoT devices, and blockchain nodes, cybersecurity has emerged as the backbone of sustainable PropTech growth. As buyers upload sensitive documents, make digital payments, and sign e-agreements, platforms must double down on building trust.

Emerging solutions include:

  • End-to-end encryption across all data exchanges
  • Multi-factor authentication for buyers and agents
  • AI-powered anomaly detection to flag fraudulent activity
  • Privacy-by-design frameworks that minimise data exposure

A breach in a PropTech platform doesn’t just cause monetary losses—it erodes confidence in the digital property ecosystem. Hence, cybersecurity is not just a backend feature; it is now a key marketing and brand trust element.

 

Process Traditional method cost Proptech-driven method cost Savings (%) Key benefits of tech-driven approach
Property Site Visits ₹3,000-₹10,000 (travel, time off work, logistics) ₹0-₹500 (via VR/AR virtual tours on apps or websites) Up to 95% Saves travel time, enables remote decision-making
Brokerage Fees 1-2% of property value (₹1-₹4 lakh for ₹50L-₹2Cr homes) Often 0% (platforms list directly; agents have transparent fees) 50% (in some cases) More transparency, easier comparison, reduced middlemen
Legal Due Diligence ₹15,000- ₹50,000 (lawyer consultation, document checks) ₹5,000-₹15,000 (online legal bundles or AI-powered document checks) 60-70% Faster verification, bundled digital services
Marketing a Property ₹10,000- ₹30,000 (photography, print ads, signage) ₹2,000-₹8,000 (drone shots, online listings, video tours) 60-80% Higher reach, better visuals, targeted digital audiences
Home Loan Processing ₹5,000- ₹10,000 (manual form filling, office visits) ₹0-₹1,000 (online application, e-KYC, AI-based loan matching) 80-90% Quicker approvals, no paperwork or branch visits
Documentation & Signatures ₹1,000- ₹3,000 (couriers, notary visits) ₹0 (e-signature integrations via platforms) 100% Instant sign-offs, ideal for NRIs



The intersection of real estate and technology is no longer optional. It is a necessity. As digital natives become the majority of buyers and sellers, the demand for faster, safer, and smarter solutions will only grow.

PropTech is democratising access to information, enhancing trust in transactions, and creating experiences that are tailored to individual needs. From construction to closing, each stage of the property lifecycle is being reimagined.

Agents and developers who embrace this evolution are not just staying relevant. They are shaping the future of real estate.

FAQs

What is Property Tech (PropTech)?

Property Tech, or PropTech, refers to the use of technology to improve and innovate within the real estate sector. It includes tools like AI, blockchain, virtual reality, IoT, and big data to streamline processes, enhance user experience, and increase transparency in property transactions.

How is artificial intelligence used in real estate?

AI is used to personalise property recommendations, automate administrative tasks, predict market trends, and even estimate property values. It helps both buyers and professionals make faster and smarter decisions.

What is the role of virtual and augmented reality in real estate?

Virtual reality allows potential buyers to tour properties remotely, while augmented reality helps them visualise design changes and furniture placement. These technologies reduce the need for physical visits and shorten decision timelines

How does blockchain improve property transactions?

Blockchain enables secure and transparent record-keeping for titles and contracts. It supports smart contracts that automate deals once conditions are met, minimising fraud and reducing the need for intermediaries.

What benefits do IoT and smart home technologies bring?

IoT devices manage energy use, security, lighting, and temperature. They offer real-time control and data to both residents and facility managers, enhancing comfort, safety, and efficiency.

Why is big data important in the real estate market?

Big data helps analyse buyer behaviour, price trends, and neighbourhood developments. It guides investors, agents, and developers in making informed decisions based on real-time and predictive insights.

What are some examples of PropTech platforms?

Platforms like Housing offer end-to-end services including property listings, virtual tours, legal aid, mortgage tools, and agent connections, all in one place.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
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