Proptech Investments in India Surpassed the USD 4 Bn Mark in H1 2023 Shared economy platforms (co-living and co-working) and construction technology get maximum funding, according to a report by Housing.com.
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Despite difficulties during the COVID-19 pandemic brought on by the temporary closure of schools and universities, the co-living industry experienced a dramatic turnaround with the reopening of educational institutions and offices. Co-living business owners who survived the pandemic saw a V-shaped rebound and high demand for higher standard rental homes.
The shared economy sector led proptech investments in India between 2009 and mid-2023, accounting for 40% of all investments, followed by sales and marketing with a 24% share.
Since 2010, proptech investments in India have increased at a CAGR of 49%, with considerable investments in terms of value made in areas including the shared economy and sales & marketing.
The cumulative proptech investments in India exceeded the $4 billion mark in H1 2023, according to a report by Housing.com, demonstrating the industry's rapid growth and potential for transformation.
The investment scenario in 2022
The Indian proptech industry is growing, according to Ankita Sood, Head of Research at Housing.com, PropTiger.com, and Makaan.com. Investments in 2022 were USD 719 million, barely shy of their all-time high despite global headwinds. The use of demand-side technologies is evident, as seen by investments in sales, marketing, and the sharing economy. Construction technology has received USD 109 million, or 15% of all investments made during this time period, indicating that supply-side technology is also accelerating.
Sood continued, "Investments have grown significantly over the past five to ten years, demonstrating that India's proptech sector is a bright spot on the world market. All phases of the real estate lifecycle, from discovering a property to finalising the purchase, employ technology today. Additionally, this is reducing costs and waiting times, streamlining and improving processes for all parties involved."
Even while investment in proptech companies fell slightly from USD 742 million the year before, some sectors of the business attracted a lot of investor attention. Notably, platforms for the shared economy like co-working and co-living secured the biggest share, accounting for 64% of the total inflow of funds. The estimated growth potential in these industries is responsible for the rise in investor confidence.
When asked about the performance of the market, Dhruv Agarwala, Group CEO of Housing.com, PropTiger.com, and Makaan.com, stated, "Investments in the proptech area remained consistent throughout 2022, even throughout global uncertainty. The real estate industry has advanced significantly in the recent decade in terms of embracing cutting-edge technologies, especially in the last three years. The COVID-19 epidemic and ensuing lockdowns acted as accelerators, hastening the industry's embrace of technology."
Despite a little decline in funding during 2022, the PropTech sector's overall development trajectory is still upward. The industry's dedication to utilising technology for sustainable advancement and development is highlighted by the significant investment made in shared economy platforms and construction technology solutions.
