From just two in 2016 to 1,400 in 2022, property technology startups have grown by leaps and bounds in the country, according to a report by property consultant Anarock. It showed that 6 per cent of the startups in the country are in the property technology sector.
Technological intervention in the real estate sector has needed to be faster, with conventional models and practices of planning, management, construction, project execution and sales ruling the roost for a long time.
However, the report, published Monday, showed that the Covid-19 pandemic had changed this for good. While banking, insurance, travel and e-commerce sectors had seen a quick uptick in terms of startup solutions, the pandemic pushed the real estate sector to adopt disruption in terms of technology.
The report showed that technology adoption has increased regarding online platforms for property discovery, comparison, and even purchasing properties. “Technological disruptions using various platforms and technologies have far-reaching impacts,” the report read.
Anarock’s report showed that startups focused on property technology had shown an impressive compound annual growth rate (CAGR) of 200 per cent since 2015.
“The real estate sector rapidly transformed how it operated, flagging off a digital journey that laid open the immense scope of technological intervention and implementation. The need to increase efficiencies and ensure sustenance and rapid scalability in real estate opened wide the technology floodgates,” the report said.
With 84 per cent of the real estate sector focused on residential accounts, most startups should have focused on this, according to conventional wisdom. However, Anarock’s reports showed that only 700-800 startups account for 13 per cent of the total startups focused on housing.
“Today, proptech startups in the country are at various phases of their life-cycles. While 30 per cent are currently in their pre-seed stage, 56 per cent have already successfully raised funds from investors. Many others are currently in the validation stage, seeking to establish the proof of their concept, and many of them are likely to progress to the fund-raising stage soon,” the report said.
Prashant Thakur, senior director and head of research, Anarock, said the prospects of real estate startups are bright in the country.
