India’s pursuit of economic transformation is accompanied by the real estate sector, which is crucial in driving growth and fostering innovation. The newly passed 2024 government budget addresses a strategic initiative for proptech, the real estate and technology convergence, with an estimated economic impact of one trillion dollars on the GDP by 2030. The Proptech industry projects a massive increase in GDP growth rate, estimated to grow at 13% by 2025. This development is deemed vital for the country’s economic development.
SUMMARY
– The Union Budget 2024 is anticipated to include policies fostering PropTech, inclusivity for smaller developers, and advancements in construction robotics.
– Hopes are high for comprehensive policies that promote affordable housing, including tax breaks, grants, and subsidies to nurture PropTech development.
– The budget may catalyze research in construction robotics and energy-efficient solutions, indicating growing governmental recognition of the sector’s importance.
– Anticipated measures include policies to focus on real estate digital transformation, virtual home tours, drone technologies, and mapping out sites.
Proptech has advanced beyond simple classified ads and now encompasses a holistic strategy that assists users in all aspects of the real estate process, including exploration, acquisition, and administration. This technologically advanced system guarantees rapid expansion in many categories of assets and consumption methods, with an estimated market value of USD 100 billion by 2030.
In the last ten years, the Indian real estate business has undergone systematic and regulatory enhancements, leading to increased liberalization. The increase in rental living, residential, commercial, office spaces, GCCs, industrial and warehousing, data centres, and public infrastructure projects is driven countrywide by five demand sectors. These factors encompass urbanization, growth in the IT and BFSI sectors, expansion of manufacturing corridors, the rapidly expanding digital economy, and infrastructure improvement.
Prime Minister Narendra Modi implemented progressive measures in four crucial domains in India. These initiatives encompass the digitization of land records and real estate transactions via the Digital India Land Record Modernization Program (DILRMP), the enhancement of transparency through demonetization and the implementation of the Goods and Services Tax, the regulation of real estate development and licensing service providers under the RERA (Regulation and Development) Act of 2016, and the overhaul of rent control through the Model Tenancy Act of 2021. As a result of these factors and increasing confidence in Indian leadership, the industry attracted a total of USD 26.6 billion in foreign institutional investments between 2017 and 2022.
A key budget component is implementing innovative regulatory frameworks to boost investor confidence and foster long-term growth. This agreement protects investors’ interests, enhances transaction transparency, standardizes information disclosure, and establishes effective complaint resolution procedures. As a result of these efforts, technology is being accepted as a common practice, and domestic funds are being used for real estate development so that India can reach its full potential as a global leader in Proptech.
The government recognizes the significance of data governance and stringent data protection legislation in safeguarding consumer privacy and promoting increased user participation. The emphasis on data security enhances investor confidence, resulting in a significant increase in international institutional inflows.
The budget acknowledges the necessity of safeguarding consumers and improving their overall experience through engaging with real estate, encompassing the exploration, acquisition, and utilization stages. At the same time, it highlights the importance of improving efficiency for real estate companies, such as developers and distributors, to expand their operations and lower expenses.
The potential of Proptech to completely transform rental real estate, property transactions, and finance systems is immense. By implementing regulatory frameworks, India may promote the use of technology in the Proptech industry. This would enable the country to reach new levels of development by embracing advanced technologies such as LLM, Generative AI, Blockchain, and AR/VR, which will empower consumers and businesses.
Proptech has advanced beyond simple classified ads and now encompasses a holistic strategy that assists users in all aspects of the real estate process, including exploration, acquisition, and administration. This technologically advanced system guarantees rapid expansion in many categories of assets and consumption methods, with an estimated market value of USD 100 billion by 2030.
Based on the budget, government programs, regulatory frameworks, and technology advancements will drive significant growth in the Proptech industry by 2024. By fully adopting Proptech’s transformative capabilities, India’s real estate industry might achieve significant expansion, progress, and inclusiveness. Hence, the business possesses the potential to attain a market value of $1 trillion by 2030.
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By Proptechbuzz
By Ravi Kumar