India’s PropTech market is expected to cross $600 billion by 2047, growing from the current $10.5 billion, according to a joint report by the Confederation of Real Estate Developers’ Associations of India (CREDAI) and Ernst & Young (EY). The report also predicts that the real estate sector will cross $4.8 trillion by 2047, contributing 18% to the projected $26 trillion GDP.
The current market penetration for PropTech-based solutions in the real estate sector is less than 5% of the overall real estate market size. However, PropTech is expected to make up 12-13% of the overall real estate market by 2047.
The integration of PropTech is enhancing operational efficiency, streamlining automation, reducing expenses, and improving margins in the real estate sector. Innovations like Artificial Intelligence (AI), Internet of Things (IoT), and Building Information Modelling (BIM) are revolutionizing operations and ensuring transparency across the real estate value chain.
CREDAI has urged the government to redefine affordable housing, input tax credit, and make land available through zoning and streamlined land acquisition policies. The current definition of affordable housing has become unviable due to rising inflation and increased costs of raw materials.
CREDAI has proposed redefining affordable housing to homes worth โน90 lakh. The association has also suggested that the government explore the feasibility of implementing a housing finance guarantee scheme for affordable housing projects and introduce flexible FSI payment options.
Boman Irani, President, CREDAI, said, “Indian real estate finds itself at an extremely crucial and exciting junction. We constantly expect to take smaller, yet significant steps of development as we march towards our collective mission of Viksit Bharat by 2047.”
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