December 3, 2024: According to a joint report by HDFC Capital, Brigade REAP and Knight Frank, a cumulative PropTech investment growth is estimated at 15% CAGR, from USD 6 billion in 2023 to USD 16 billion by 2030. The report “Brick by Brick – Cement to Code” highlights the role of PropTech in real estate by way of improving efficiencies at each stage of the real estate project lifecycle. It highlights the growth of the affordable housing sector and innovative strategies being adopted to address the supply side challenges. Further, the study delves into technological innovations that are reshaping the real estate industry, significantly impacting how buildings are designed, constructed, maintained, and how customers are serviced. With robust government support and a unified industry effort, India stands poised to spearhead a housing revolution that benefits individuals across all income levels, fostering a robust real estate sector for the future.
Nirupa Shankar, joint managing director of Brigade Group, said, “The real estate sector significantly contributes to India’s economy, accounting for 7.3% of the country’s Gross Domestic Product (GDP). Within this dynamic sector, PropTech contributes approximately USD 6 billion, representing a 2.3% share of the overall real estate market. India is in a sweet demographic spot and this presents immense opportunities and significant challenges as the number of young professionals seeking affordable urban housing rises. Tackling this housing challenge requires a strategic approach that emphasizes infrastructure development, integrates sustainability within construction and design, and leverages technology as a transformative force.”
Vipul Roongta, MD & CEO, HDFC Capital, “Technology will play an important role in addressing the affordable housing supply side challenges. HDFC Capital launched the H@ART Program, which seeks to mentor, partner and invest in real estate technology companies that accelerate break through innovations and efficiencies within the affordable housing ecosystem. We will continue supporting innovative businesses & solutions for affordable housing.”
Ghulam Zia, Senior Executive Director, Knight Frank India, said “PropTech can help reduce costs, improve efficiency, and enhance transparency in the real estate sector, ultimately making housing more accessible to a wider range of buyers. PropTech can play a crucial role in creating more sustainable and resilient cities. By optimizing resource usage, reducing energy consumption, and improving building performance, PropTech solutions can contribute to a greener and more sustainable built environment.”
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