Prop-tech startup will corner the share of $1 trillion real estate opportunity by 2030.
According to Homexchange CEO and cofounder Jesal Sanghavi, the next phase of prop-tech disruption will drive faster and sustainable growth in the real estate sector in the medium to long-run.
However, Landeed CEO and cofounder Sanjay Mandava believes that not much transformation has happened in the Indian prop-tech space. Noting that the country is merely at the beginning of prop-tech development, he said that the focus has largely been on building advanced tools for brokers or rentals and purchases of residential real estate.
The pain points continued to grow over successive Covid waves as sales dwindled and costs rose. This provided an opportunity to prop-tech players to address some of the issues. Leveraging digital penetration, many of these startups came up with products which optimised processes, enhanced outreach and improved consumer experience.
The digital transition saw many startups also deploying augmented reality and Metaverse to give remote tours of the properties. The ensuing transformation also saw some of these startups using emerging technologies such as artificial intelligence (AI), machine learning (ML) and blockchain to open up new avenues within the overarching real estate sector.
There is a need for a single-window clearance system for the space. He added that such a mechanism would not only reduce the compliance burden, cost and speed of construction but also improve transparency and consumer confidence significantly.
Digital trends during Covid times have forced real estate companies to reach customers through digital channels, which is a hard trend to reverse. Therefore, most developers and construction companies have welcomed synergies with prop-tech players which will continue to grow the avenues and manner through which they engage with consumers and manage their own businesses.
The Indian prop-tech arena has grown slowly and steadily despite the challenges. While the space has been seeing an increase in funding in recent times, it remains to be seen how it faces the challenges such as the ongoing funding winter, and apprehensions of an upcoming recession, among others. However, as internet penetration continues to grow higher, the ride forward appears to be about time-tested parameters such as sustainability and innovation.
“In its beginnings, Beverly Hills was agricultural flat land – a green oasis that fed a growing urbanity.”