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%.
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.