The increasing number of homebuyers in the country plan and execute their property purchases through the medium of virtual platforms in the aftermath of the coronavirus pandemic, the PropTech industry in India attracted over $551 million in 2020, exceeding the aggregate of the previous year – $549 million, according to a report by Housing.com.
The report titled ‘PropTech: The Future of Real Estate in India’ shows that investments in the PropTech segment grew marginally up to $551 million in 2020 from $549 million in 2019.
However, even the marginal upwards movement could be termed as significant, considering the
unprecedented challenges the world faced during 2020.More importantly, investments in the segment during the year were at their peak in 2020 since tech-based start-up companies in India began entering the real estate segment in India, starting 2000s.
Till now, $2.4 billion have been invested in India’s PropTech industry across 225 deals as of date, the report says.
The report attributes the growth in the segment to a fast-growing middle class, rapid urbanization, and the adoption of technology, an increasing internet user base of over 500 million users, a young demographic base, and a gradually consolidating real estate canvas.
“During the lockdown and the subsequent phased opening of the economy, most buyers concluded their property purchases using virtual mediums. That was made possible because, since 2010, enterprises have already been investing heavily in the Proptech segment to enable buyers to conclude property purchases with fewer efforts as applied traditionally. If these platforms were only popular to find and finalize properties in the pre-pandemic era, the pandemic has changed much of that. It is also pertinent to mention here that housing markets in India would have taken an even more severe hit because of the virus outbreak and its effects, had the PropTech industry not been gradually growing in the country,” said Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com.
