The PropTech sector has demonstrated remarkable resilience from FY 2011 to FY 2024, with investments in India accumulating a total of USD 4.6 billion, growing at an impressive compound annual growth rate (CAGR) of 40%. This rapid growth underscores the transformative impact of technology on the real estate industry, driving efficiency and innovation, as revealed in the Annual PE Investment Round-Up report by Housing.com.
Despite global economic uncertainties, funding in PropTech firms experienced only a slight dip in FY 2024, with investments totalling USD 657 million, down from USD 683 million in FY 2023. This figure represents 90% of the record high of USD 730 million investment received by the PropTech sector in FY 2022.
The Shared Economy and Construction Technology segments have emerged as leaders in the PropTech space, capturing 55% and 23% of the overall private investments in FY 2024, respectively. These segments continue to attract substantial interest and investment, reflecting their pivotal role in shaping the future of real estate.
The report further highlighted that PropTech companies specializing in construction technology solutions received 23% of the total funding in FY 2024. This trend underscores real estate developers' increasing focus on reducing construction times while upholding high-quality standards. In countries like India, where prolonged construction cycles drive up project costs, PropTech solutions are being increasingly adopted for efficient project management. Additionally, the coworking segment has experienced rapid expansion over the past three years, fueled by the growing demand for flexible workspace solutions from corporations.
