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AI, Blockchain, and IoT to Power Digital Transformation in Real Estate
Real Estate

AI, Blockchain, and IoT to Power Digital Transformation in Real Estate

The Indian real estate market is projected to catapult from $350 billion in 2023 to a staggering $1 trillion by 2030, driven by rapid urbanisation, digital adoption, and innovative technological solutions, according to the AURUM PropTech report released at India PropTech Summit, 2024. With the urban population expected to reach 680 million by 2047, the market is witnessing a fundamental transformation that extends far beyond traditional real estate paradigms. This population growth necessitates 230 million additional housing units.

AURUM PropTech findings identified that two crore urban residents across top 8 Indian cities are seeking rental housing, yet only 8 lakhs organised, and institutional rental units exist. This imbalance offers a 25x opportunity to bridge the gap between demand and supply with PropTech-driven rental solutions. The influx of urbanisation, changing consumption patterns of Gen-Z and millennials and rapid tech adoption are transforming residential rental real estate in India.

The report further revealed that conducive regulations like Small and Medium Real Estate Investment Trusts (SM-REITs) are democratising investments in real estate by allowing individual investors to participate in high-quality commercial assets. The regulation provides an opportunity to address financing of 32.8 crore square feet SM-REITAble supply across the country.

AURUM PropTech report also highlighted the tectonic shift in India's real estate market, with digital platforms becoming the primary conduit for real estate transactions. An astounding 75 per cent of homebuyers now rely on digital platforms, while 50 per cent engage in virtual property tours, signaling profound technological disruption. The Indian real estate market is witnessing a surge in demand for luxury and branded housing, coupled with significant growth in Tier-II and Tier-III cities. This expansion is increasingly powered by a growing dependency on digital marketing strategies that leverage cutting-edge technological solutions. With annual real estate marketing expenditures reaching Rs 38,000 crore, there is a clear and strategic shift towards allocating more resources to digital marketing channels.

PropTech 3.0, the decade of 2020, is further revolutionising the industry through artificial intelligence (AI), blockchain, and immersive technologies like AR/VR, creating unprecedented opportunities for investors, developers, and consumers alike. AI applications are redefining customer engagement, marketing, and sales by offering personalized property recommendations and automated content generation. It also helps streamline transactions with AI-generated visualizations and enhanced customer service via virtual assistants.

Onkar Shetye, Executive Director, Aurum PropTech said?“The ongoing advancement in technology has embraced real estate across enterprises, consumers and service providers. The convergence of technology, changing consumer behavior, enterprise adoption and conducive regulatory framework are creating unprecedented opportunities for innovation and disruption. We look forward to capitalising on these factors. “?

He further added, “We felt the need to take initiative and create visibility for India PropTech- which offers a $100 billion opportunity across real estate rentals, distribution and capital financing. This summit saw an assimilation of industry experts who engaged in discourse around the industry's ongoing and future trends. Through thought leadership and networking, we aim to catalyse the growth in India PropTech.”

India PropTech Summit, 2024: Rental, Distribution & Capital Opportunities, organised by AURUM PropTech at Jio World Convention Centre in Mumbai, saw industry stalwarts gather under the same roof to discuss the growth and opportunities in the Indian real estate ecosystem.

The Indian real estate market is projected to catapult from $350 billion in 2023 to a staggering $1 trillion by 2030, driven by rapid urbanisation, digital adoption, and innovative technological solutions, according to the AURUM PropTech report released at India PropTech Summit, 2024. With the urban population expected to reach 680 million by 2047, the market is witnessing a fundamental transformation that extends far beyond traditional real estate paradigms. This population growth necessitates 230 million additional housing units. AURUM PropTech findings identified that two crore urban residents across top 8 Indian cities are seeking rental housing, yet only 8 lakhs organised, and institutional rental units exist. This imbalance offers a 25x opportunity to bridge the gap between demand and supply with PropTech-driven rental solutions. The influx of urbanisation, changing consumption patterns of Gen-Z and millennials and rapid tech adoption are transforming residential rental real estate in India. The report further revealed that conducive regulations like Small and Medium Real Estate Investment Trusts (SM-REITs) are democratising investments in real estate by allowing individual investors to participate in high-quality commercial assets. The regulation provides an opportunity to address financing of 32.8 crore square feet SM-REITAble supply across the country. AURUM PropTech report also highlighted the tectonic shift in India's real estate market, with digital platforms becoming the primary conduit for real estate transactions. An astounding 75 per cent of homebuyers now rely on digital platforms, while 50 per cent engage in virtual property tours, signaling profound technological disruption. The Indian real estate market is witnessing a surge in demand for luxury and branded housing, coupled with significant growth in Tier-II and Tier-III cities. This expansion is increasingly powered by a growing dependency on digital marketing strategies that leverage cutting-edge technological solutions. With annual real estate marketing expenditures reaching Rs 38,000 crore, there is a clear and strategic shift towards allocating more resources to digital marketing channels. PropTech 3.0, the decade of 2020, is further revolutionising the industry through artificial intelligence (AI), blockchain, and immersive technologies like AR/VR, creating unprecedented opportunities for investors, developers, and consumers alike. AI applications are redefining customer engagement, marketing, and sales by offering personalized property recommendations and automated content generation. It also helps streamline transactions with AI-generated visualizations and enhanced customer service via virtual assistants. Onkar Shetye, Executive Director, Aurum PropTech said?“The ongoing advancement in technology has embraced real estate across enterprises, consumers and service providers. The convergence of technology, changing consumer behavior, enterprise adoption and conducive regulatory framework are creating unprecedented opportunities for innovation and disruption. We look forward to capitalising on these factors. “? He further added, “We felt the need to take initiative and create visibility for India PropTech- which offers a $100 billion opportunity across real estate rentals, distribution and capital financing. This summit saw an assimilation of industry experts who engaged in discourse around the industry's ongoing and future trends. Through thought leadership and networking, we aim to catalyse the growth in India PropTech.” India PropTech Summit, 2024: Rental, Distribution & Capital Opportunities, organised by AURUM PropTech at Jio World Convention Centre in Mumbai, saw industry stalwarts gather under the same roof to discuss the growth and opportunities in the Indian real estate ecosystem.

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