Disruptions in real estate are driven by a compelling need to upgrade the near-antiquated technology
While the last two decades were characterized by technological disruptions across sectors and asset classes, Real Estate, Construction and the allied sectors were primarily bereft of it!
However, the last few years have been different, with technology making steady inroads into the industry and disruptions driving a capital influx of ~ $80 billion since 2010!
This has created a robust Real Estate technology ("PropTech) start-up eco-system.
While the overall market is evolving, specific sub-segments within the PropTech industry are witnessing maturity.
While India has been relatively slow to catch up to the global pace of tech adoption, the industry has attracted capital of more than half a billion USD consistently since 2018, touching a high of USD 0.7 billion in 2021, thereby reflecting increased investor participation.
Some vital dynamics drive tech adoption across Residential, Commercial and Construction sectors.
SO WHAT'S NEXT FOR THE SECTOR?
Though the global PropTech industry is evolving, tech adoption is still reasonably underpenetrated across asset classes, so the funding momentum is expected to continue.
The impact of a slowdown in late-stage funding across the VC ecosystem may lead to a higher volume of acquisitions by more prominent players looking to consolidate their position by offering unified solutions.
From India’s perspective, as the real estate market in India expands five-fold to reach $1 trillion by the decade’s end, the increasing need to accelerate tech adoption would drive the space significantly.
Integrating sustainability within the industry is critical as real estate contributes to ~40% of global emissions.
Founders building solutions at the intersection of real estate and sustainability would lead the next leg of PropTech growth!
Co-Founder, CEO @ Blanket | Helping Property Managers Grow 🚀
1yGreat insight! These trends provide an interesting perspective on how quickly the industry is changing.