India’s real estate market is undergoing a transformative journey, with its size projected to reach $4.8 trillion by 2047, up from the current $300 billion. The sector, expected to contribute 18% to India’s estimated $26 trillion GDP by 2047, is witnessing a paradigm shift through PropTech integration. A joint report by CREDAI and EY highlights that PropTech, valued at $10.5 billion today, could surge to $600 billion, forming 12-13% of the real estate sector by 2047. By embracing technology, the industry is poised to enhance operational efficiency, transparency, and growth.
PropTech’s rise is attributed to innovations like Artificial Intelligence (AI), the Internet of Things (IoT), and Building Information Modelling (BIM). These technologies streamline processes, reduce costs, and elevate customer experiences. However, real estate stakeholders are keenly aware of balancing technological advancement with affordability. CREDAI has urged the government to redefine affordable housing standards, arguing that the current ₹45 lakh price cap is no longer viable due to inflation and rising raw material costs. They propose revising the cap to ₹90 lakh to reflect current economic realities.
Sustainability remains at the heart of this transformation. The sector’s push for satellite towns near major urban centres reflects a commitment to reduce congestion and promote balanced regional growth. These towns, coupled with effective zoning and streamlined land policies, aim to address urban sprawl sustainably. CREDAI has also suggested flexible FSI payment options and housing finance guarantee schemes to further these goals.
Boman Irani, President of CREDAI, aptly summarises this pivotal moment: “As India urbanises rapidly, sustainable methods and technological advancements must guide the evolution of real estate.” With its human-centric approach enhanced by cutting-edge technology, Indian real estate is set to become a cornerstone of India’s economic and urban future, balancing innovation with responsibility.
