– By Ashish Deora
India’s real estate sector is set to grow to USD 1 trillion by 2030, owing to increased demand for homes, office spaces, manufacturing hubs and infrastructure. For creating developments at such a large scale, the institutionalization of technology across all stakeholders, including capital allocators, developers, service providers, and consumers, will be inevitable. India PropTech is not moving away from merely classified listings to fulfill and complete tech enabled user journeys. PropTech will play a pivotal role in the sector witnessing accelerated growth and throughout all the asset classes and usage types, the Indian PropTech sector size could be USD 100 billion by 2030.
In the past decade, structural and policy reforms have enabled enormous regularization and liberalization of the Indian real estate sector. Five segments are demand, including increased urbanization, IT and BFSI growth, the proliferation of manufacturing corridors, exponentially growing digital economy, and rapid infrastructure development are fueling growth across asset classes of rental living, residential, commercial, office spaces, GCCs, industrial and warehousing, data centers and public infrastructure projects across the country.
Under the leadership of Prime Minister Narendra Modi, India witnessed major policy push across four key areas, including the digitization of land records and real estate transactions under the Digital India Land Record Modernization Program (DILRMP), transparency in real estate transactions under demonetization and Goods and Services Tax implementation , regulation of real estate development and licensing of service providers under RERA (Regulation and Development) Act, 2016), and reforms of the rent control act under the Model Tenancy Act 2021. As a result of this and increased confidence on the Indian leadership, the sector has attracted USD 26.6 billion in foreign institutional inflows between 2017 and 2022.
We are looking forward to progressive regulatory frameworks not only to foster investor interest in the real estate space but also to ensure investor protection, common disclosure practices, and a robust redressal mechanism. Regulation driven institutionalization of technology in consumer and enterprises will help in unlocking domestic capital for real estate development to achieve India’s real estate growth potential.
Governance and regularization of data protection act is required for consumer data protection, increasing experience of consumer engagement, brand engagement effectiveness.
Guardrails for growth in the sector are required to achieve two crucial aspects. First, protecting consumers and enhancing their experience of discovering, buying and consuming real estate. Second, increasing efficiency of real estate enterprises including developers and distributors to acquire, build and monetize at scale. Policy led tech adoption on rental real estate, property purchase and sale, and investing and financing real estate will help in moving India PropTech from 1.0 to 3.0, and accelerate adoption of LLM, Generative AI, Blockchain and AR/VR ultimately benefitting consumers and enterprises alike.
Under Prime Minister Narendra Modi’s leadership, Bharat led the global fintech revolution and we are confident we will become global leaders in the sector by building transparency and trust with technology in the sector.
(Ashish Deora is the founder and CEO of Aurum Ventures.)
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