Proptech Usage in Indian Real Estate

Key insights from GRI Club’s online meeting with market experts

March 18, 2024Real Estate
Written by Isabella Toledo

The Indian real estate market is undergoing a digital transformation with the adoption of innovative technologies, software, and applications to simplify processes for investors, developers, buyers, sellers, and tenants. 

However, questions remain about the efficacy and differences compared to Western markets. GRI Club India hosted a meeting with industry leaders to address these concerns and share valuable insights. Presented here is a summarised edition of our complete report, available here.

As established by The Proptech Connection, a leading global advisory firm, the concept of Proptech is defined as anything impacting space, proving challenging to pinpoint precisely due to the changing ways in which space is utilised, particularly with diverse user cohorts and an increasing number of real estate use cases.

With around 18,000 of PropTechs globally, these innovative startups are viewed as a transformative force reshaping the real estate industry. In India, the dynamic evolution of the scene is marked by a surge in residential prices, the formation of REITs and the shift of foreign direct investment.1

While Indian PropTechs, numbering between 2,000 and 3,000, are primarily smaller domestic players, their emphasis on end-to-end solutions, leveraging India’s tech capabilities, is evident. Proficiency in English enhances their international appeal, facilitating seamless collaboration.1

India’s true strength, however, lies in developing customer-centric, tech-focused software, positioning it as a global hub for innovative solutions. This commitment to customer satisfaction and cutting-edge technology presents a unique advantage in the industry.

As many innovations within PropTech globally echo concepts that have already been explored, India has a valuable advantage. By examining global examples, investors and developers have the opportunity to learn from the challenges faced by other players.1 

Execution is deemed crucial in addressing the challenge of fragmentation within the Indian real estate market. Factors like aggregation and the potential network effect emerge as attractive considerations for international investors.

The anticipated growth momentum in Indian PropTechs is expected to persist, even in challenging circumstances. Drawing lessons from global examples, the country has a strategic opportunity to efficiently adopt or build technology, leveraging its ability to start anew to avoid the pitfalls of retrofitting other technologies to fit the needs of the India market.1

Click HERE to access the full report and read all the exclusive takeaways.

1 Source: Stephen Macdonald - The Proptech Connection, presented at “GRI Club: Proptech Usage in Indian Real Estate”.