Affordable housing expected to drive proptech investments in the country, to touch $16 billion by 2030: Report

The affordable housing sector is expected to propel proptech investments in the country. The segment is projected to grow steadily at 15% CAGR, from $6 billion in 2023 to $16 billion by 2030, according to a study by HDFC Capital, Brigade REAP, and Knight Frank.

With robust government support and a unified industry effort, India stands poised to spearhead a housing revolution that benefits individuals across all income levels, fostering a strong real estate sector for the future, it said.

“The real estate sector significantly contributes to India’s economy, accounting for 7.3% of the country’s Gross Domestic Product (GDP). Within this sector, PropTech contributes approximately $6 billion, representing a 2.3% share of the overall real estate market. India is in a sweet demographic spot and this presents immense opportunities and significant challenges, as the number of young professionals seeking affordable urban housing rises,” said Nirupa Shankar, Joint Managing Director of Brigade Group.

Also Read: Boost availability of land to provide habitation to the young mobile population of the country: MoHUA secretary

“Tackling this housing challenge requires a strategic approach that emphasizes infrastructure development, integrates sustainability within construction and design, and leverages technology as a transformative force,” she said.

Role of technology in addressing affordable housing supply challenges

Experts added that technology will be important in addressing the affordable housing supply side challenges. HDFC Capital had earlier launched the H@ART Program which seeks to mentor, partner and invest in real estate technology companies.

“PropTech can help reduce costs, improve efficiency, and enhance transparency in the real estate sector, ultimately making housing more accessible to a wider range of buyers. PropTech can play a crucial role in creating more sustainable and resilient cities. By optimizing resource usage, reducing energy consumption, and improving building performance, PropTech solutions can contribute to a greener and more sustainable built environment,” according to Ghulam Zia, Senior Executive Director, Knight Frank India.