What is proptech? Experts explain how technology is reshaping India's real estate sector

In a significant transformation of India's real estate sector, the fusion of cutting-edge technology and property transactions, commonly known as "proptech", is reshaping the way Indians buy, sell, and manage properties, say experts. A joint report by KPMG and NAREDCO anticipates a robust 9.6 per cent Compound Annual Growth Rate (CAGR) for the Indian proptech market by 2025.

Tech integration streamlines real estate processes

Property assessment

Artificial intelligence is playing a pivotal role in property valuation. "Using predictive analysis algorithms, AI assesses various factors such as demographics, income distribution, and future supply forecasts within micro markets. This empowers decision-makers to make informed choices when it comes to property investments," said S Gurdeep Singh, Founder & Chairperson, Jujhar Group.

Simplified data management

The real estate industry grapples with vast amounts of data. Cloud technology has emerged as a game-changer, allowing realtors to efficiently store and access data from anywhere, reducing the time spent organising information.

Virtual property tours

Augmented and virtual reality technologies have introduced the concept of virtual property tours, eliminating the need for physical visits. Prospective buyers can now explore properties from the comfort of their homes, gaining a realistic view of each room.

Automated processes

Robotic process automation has automated routine tasks, freeing up real estate professionals to focus on higher-value activities. "Tasks such as contract management, approvals, data compilation, and compliance reporting are now handled with greater efficiency and reduced risk of human error," Singh added.

Government initiatives

To encourage the widespread adoption of technology in the real estate sector, the government has launched initiatives such as the Technology Sub-Mission (TSM) under the Pradhan Mantri Awas Yojana-Urban (PMAY-U). This program promotes the use of innovative, eco-friendly, and disaster-resistant technologies in affordable housing construction.

"Proptech, the marriage of technology and real estate, is making property transactions more efficient, transparent, and accessible to consumers and industry professionals alike. As technology continues to evolve, further disruptive innovations are expected to keep the real estate market vibrant and open," Singh emphasised.