India has the highest number of proptech deals in Asia-Pac
If you are a prospective home buyer or a person looking for a place on rent, you would now want to look for a property of your choice online instead of speaking to a local broker in the region.
And there is a merit in doing so. Thanks to the plethora of choices that technology-based listings portals offer, property technology space have come a full circle since the year 2007 and have now entered into other segments of servicing prospective buyers such as designing of the flat, property management, region analysis and documentation help to buyers etc.
The proptech space, a blend of property and technology market, has made it big in India. Across the Asia Pacific region, India is one of the most dynamic markets for prop tech and has reported the most number of deals since 2013, according to the recent report Click sand Mortar: The Growing Influence of Proptech, jointly authored by international property consultants J LL and Tech in Asia, a media, events, and jobs platform for start-ups.
According to the report, while India is ahead of other regions in terms of number of deals with 77 deals; Greater China (Mainland China & Hong Kong) stands second with 34 deals.
However, Greater China’s 34 deals have collectively attracted the largest amount of USD 3,025 during the said period. Against this, India stands second with deals a mounting to USD 928. A number of factors are driving the growth and expansion of the proptech market in the country.
RAPID URBAN IS AT I ON
The two largest emerging marketslike ChinaandIndia are witnessing rapid urbanisation.
Research from the United Nations( UN) shows that between 2000 and 2016, 40 out of 47 cities with the fastest growth rate in population are in Asia ;20 of them are in China alone.
MIDDLE-INCOME POPULATION
The other big factor is the presence of middle income population of the country that is tech savvy, better connected to the Internet and use smart phones. The report adds, it is estimated that the country’ s middle class is almost half of its total population, and has become the rising force in consumption across Asia Pacific. “With its young population, rapid urbanisation and ‘mobile first’ mindset, all the conditions are in place for this new sector to accelerate, bringing increased efficiencies and better experiences for the end-user,” says Anthony Couse, CEO, JLL Asia Pacific.
UPSCALINGTECH
The report says that proptech in Asia Pacific has evolved significantly since it first emerged in 2007 with residential property listing start-ups.
In its current iteration, it is
beginning to serve larger enterprise needs and the commercial real estate sector. Application of technologies such as 3 D printing, robotics and dr ones alongside the rise of Smart Cities in the country. “Technology and real estate are converging in exciting ways ,” adds Couse.
RELIABILITY–THE BIGGEST PULL FACTOR
The proptech market in India continues to witness growth despite the current glut in the market.
“Primary market in the country is over-served. There is a strong secondary market and rental market available in the country. About a million homes are sold every year in the country. However, the lack of institutional trust in the secondary market caused by fake listings or unprofessional brokers, is a serious challenge to potential home buyers. There is a real need for reliable information and professional service,” says Vaibhav Agrawal, Associate Partner, Light speed India Partners Advisors.