Indian Proptech Sector set to hit $600 billion by 2047

According to a joint report by Credai and EY released at the association's 25th foundation day, the proptech segment of the real estate market is expected to grow from its current size of $10.5 billion to $600 billion by 2047 due to the ongoing and anticipated technological revolution occurring in the industry.

The report said, “The current market penetration for ICT/proptech-based solutions in the real estate sector is $10.5 billion which is less than 5% of the overall real estate market size”.

"PropTech is shifting from the traditional role as facilitators to growth drivers in the real estate sector. The integration of propTech is enhancing the operation efficiency, streamlining automation, reducing expenses and improving margins in the real estate sector”, the report added.

By 2047, the real estate market is predicted to grow from its current $300 billion to over $4.8 trillion. More than 18% of the anticipated $26 trillion GDP objective in 2047 is anticipated to come from it.

Proptech currently accounts for less than 5% of the $300 billion real estate industry, but by 2047, it is predicted to reach $600 billion, or 12–13% of the whole real estate market, according to the paper.

Throughout the real estate value chain, the research discusses how innovations like Artificial Intelligence (AI), the Internet of Things (IoT), and Building Information Modelling (BIM) are transforming operations, increasing efficiency, and guaranteeing transparency.

In the meantime, the government has been encouraged by the developers' organization, which has more than 13,000 members, to modify the definition of affordable housing, provide input tax credits, and make land available through expedited land acquisition procedures and zoning.