India’s real estate market is on the cusp of a monumental transformation. According to the latest report from Aurum PropTech, unveiled at the India PropTech Summit 2024, the sector is expected to grow from $350 billion in 2023 to an impressive $1 trillion by 2030. This growth is fueled by rapid urbanisation, the increasing adoption of digital technologies, and innovative PropTech solutions reshaping traditional real estate practices.

The Urban Boom: Driving Real Estate Demand

With India’s urban population projected to reach 680 million by 2047, the demand for housing is escalating at an unprecedented pace. This demographic shift is set to necessitate the construction of 230 million additional housing units over the next two decades. As urban centres expand, the real estate industry is evolving to address the needs of a tech-savvy and dynamic population.

One of the most pressing issues highlighted in the report is the demand-supply gap in rental housing. Across India’s top eight cities, 20 million urban residents seek rental homes, yet only 800,000 organised rental units are available. This imbalance offers a 25x growth opportunity for PropTech-driven solutions to revolutionise the rental housing market.

“The convergence of technology, changing consumer behaviour, enterprise adoption, and conducive regulatory frameworks are creating unprecedented opportunities for innovation and disruption,” said Onkar Shetye, Executive Director of Aurum PropTech.

PropTech: The Key to Closing Gaps

PropTech is proving to be a game-changer in addressing the inefficiencies in India’s real estate sector. From automating rental processes to enhancing customer experiences with data-driven insights, the role of technology is central to this transformation.

One standout opportunity lies in the emergence of Small and Medium Real Estate Investment Trusts (SM-REITs). These democratise investments in high-quality commercial properties by allowing individual investors to participate. The report estimates that 32.8 crore sq. ft. of SM-REIT-able space across the country presents significant opportunities for financing and investments.

“We felt the need to create visibility for India PropTech, which offers a $100 billion opportunity across real estate rentals, distribution, and capital financing,” Shetye added, emphasising the sector’s untapped potential.

Digital Transformation: Redefining the Industry

The Aurum PropTech report underscores a pivotal shift in how real estate transactions are conducted in India. 75% of homebuyers now rely on digital platforms for property searches, while 50% participate in virtual property tours. This marks a major departure from traditional real estate practices, showcasing how digital tools are revolutionising the industry.

With annual real estate marketing expenditures nearing ₹38,000 crore, the sector strategically allocates resources to digital channels. From AI-powered personalised property recommendations to immersive AR/VR tours, PropTech elevates how properties are marketed, sold, and rented.

The Rise of PropTech 3.0

The current decade, dubbed PropTech 3.0, is characterised by the adopting of cutting-edge technologies like artificial intelligence (AI), blockchain, and AR/VR. These tools are transforming real estate businesses’ operations, enhancing transparency, and improving customer experiences.

• AI in Real Estate: AI-driven tools enable automated property recommendations, virtual assistants for customer support, and intelligent content generation.
• Blockchain for Transactions: Blockchain technology is leveraged to streamline property transactions, ensuring security and transparency.
• AR/VR for Immersive Experiences: Virtual property tours provide buyers and renters with lifelike experiences, helping them make informed decisions remotely.

“The ongoing advancement in technology has embraced real estate across enterprises, consumers, and service providers,” said Shetye, emphasising the transformative role of innovation in driving growth.

Tier-II and Tier-III Cities: Emerging Growth Hubs

While major metropolitan cities have long dominated the real estate landscape, Tier-II and Tier-III cities are now emerging as significant growth drivers. These regions are experiencing increased demand for luxury and branded housing, fueled by rising incomes and digital accessibility.

Developers increasingly leverage digital marketing strategies to tap into these markets, using tools like geotargeting and virtual showcases to reach potential buyers. This shift makes real estate more inclusive and accessible, breaking barriers between urban and semi-urban regions.

The Role of Regulation in Real Estate Growth

Conducive regulatory frameworks are another factor propelling the sector forward. Initiatives like RERA (Real Estate Regulation and Development Act) and the introduction of SM-REITs enhance transparency, boost investor confidence, and attract global capital.

For instance, SM-REITs allow smaller investors to access high-quality commercial assets, democratising an asset class once reserved for institutional investors. These regulations address the sector’s financing needs and ensure equitable growth across various segments.

India PropTech Summit 2024: Shaping the Future

The India PropTech Summit 2024 was a vital platform for industry leaders, developers, and investors to discuss the sector’s future. Through thought leadership and networking, stakeholders explored the trends and innovations shaping India’s real estate market.

Shetye highlighted, “This summit saw an assimilation of industry experts engaging in discourse around the industry’s ongoing and future trends. We aim to catalyse growth in India PropTech.”

Looking Ahead: Real Estate’s Bright Future

India’s real estate market is poised for unprecedented growth, driven by the synergy of technology, urbanisation, and regulatory support. PropTech is closing the gaps in housing and rental supply and redefining how properties are built, marketed, and managed.

From AI-driven personalisation to blockchain-enabled transactions, the real estate sector is rapidly evolving to meet the demands of a new generation of buyers, renters, and investors.

As Shetye aptly put it, “We look forward to capitalising on these factors,” reflecting the immense potential for India’s PropTech ecosystem.

With the market set to touch $1 trillion by 2030, India’s real estate industry is not just growing—it’s transforming. For developers, investors, and consumers, the decade ahead promises innovation, inclusivity, and exponential opportunities.