Investment in Prop-Tech Firms Up At USD 551 Mn In 2020
Investment in prop-tech companies rose marginally to record USD 551 million last year amid surge in adoption of virtual platforms for real estate marketing during the COVID-19 pandemic, according to housing.com In its report titled ‘PropTech: The Future of Real Estate in India’, realty portal Housing.com said USD 2.4 billion has been invested so far in India’s prop-tech industry across 225 deals. Housing.com is part of Singapore-based Elara Technologies that also owns Makaan.com and PropTiger. Housing markets in India would have taken an even more severe hit because of the virus outbreak and its effects had the prop-tech industry not been gradually growing in the country, he observed. “Online business platforms that have been on the radar of investors since 2009, have evolved since, from being mere mediums for digital classifieds to offering full-stack solutions towards discovery, advisory and transactional support. The prop-tech segment is likely to see a tremendous boost in the near future amid growing use of technologies such as virtual reality, drones, big data, artificial intelligence in home purchases, the report said. It, however, pointed out that a majority of business is still conducted through the offline mode in the property brokerage business in India, estimated to be a USD 1.4 billion industry. Even with the actual transaction culminating offline, over 50 per cent of the real estate buying decisions take place through online searches. With the growing internet user base that is expected to increase up to one billion by 2025, the opportunity for players in this segment is colossal, it added.
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