PropTech investments in India have grown at a CAGR (2010-2020) of 57%, compared to a 10% growth in the overall real estate sector.
The momentum that has been built is also paving the way for modern technology innovations in changing the nature of Real Estate transactions, occupier patterns and user behavior. This momentum is also a reason for our bullish stance on the impact that Web3 will have on the Real Estate & Construction industry.
So, what excites us about Web3 and the gamut of technologies that could catalyze the adoption of PropTech at an even faster clip?
True democratization of IoT has also brought this technology to the middle of the pyramid. It could, in fact, be the most impactful technological intervention from a climate action & decarbonization point of view. From monitoring and conserving electricity, billions of gallons of water, monitoring carbon footprints and drastically reducing traditional wastage, the diminishing cost of technology is making it possible for the entire built world to become more efficient and greener. pace developers, owners, tenants and occupiers, this is a technology stack that is directly embedded into our daily lives.
The Metaverse continues to evolve as an ecosystem and the use cases are still evolving for all sectors. There are some specific opportunities in Real Estate that excite us, however. Digital Twins in the Metaverse are offering an opportunity for developers and Property Managers to monitor their properties during and after construction, in diverse applications like resources, energy and people movement. This could result in faster troubleshooting and decision-making leading to significant amounts of savings in both Capex and Opex.
Property Title registration and transactions suffer from inordinate red tape, delays and sadly, corruption, in developing economies. Blockchain, as a technology, is definitely an option that can reduce or remove a lot of the existing hassles in these long-drawn processes. As the industry and the government adopts greater transparency, a large number of opportunities have opened up, e.g. Legal Tech and smart contracts for Real Estate, Tokenization & Fractional Ownership and Secure Land Title Documentation.
Artificial Intelligence enabled frameworks are allowing Property Developers to analyze their yields, reset expectations and finally make informed decisions about when to build, where to build, and how much to charge. From a speculative process, this has already morphed into a precise, data driven decision tree.