The real estate industry in India has been growing rapidly, with startups coming up in large numbers. Since 2016, the growth of property startups has increased by 200%. Thanks to innovation and technological intervention, startups are focusing on sustainable growth of real estate properties.
Currently, startups are deploying technologies, breaking free from the shackles of traditional technologies that were used in the real estate sector.These technologies largely focus on project execution, management, planning, construction, and sales.
The growth of tech startups in the real estate sector has been a great news for investors, tenants, landlords, and brokers. The impact of this technological transformation has been phenomenal, given that 95% of customers are interested in exploring properties online. Besides, 51% of the homeowners purchase their properties through digital platforms.
The Startup India Campaign was announced in India back in 2015. In just one year, Prop Tech startups in the country increased at a strong CAGR of 200%. By 2022, the number of these startups rose to 1,400. These startups are focusing on several segments of the industry. This includes finance, construction, sustainability, and sales.
Among all the recognized startups in India, property startups account for 6% of the share. Also, a statistic reveals that residential properties constitute 84% of the overall value of real estate that is currently under construction. On the other hand, just 700 to 800 firms constitute 13% of the recognized startups operating in the Prop Tech sector.
Currently, Prop Tech companies in India are at different stages of their respective lifecycles. Among these companies, 30% are in the pre-seed stage. Another 56% have successfully raised funds from investors. Other startups are currently in the stage of validation, looking forward to prove their respective concepts.
The inception of startups in the prop tech segment has fuelled the growth of the real estate industry. This trend is likely to dominate the real estate sector in the coming years in India.
