In­dia has the high­est num­ber of proptech deals in Asia-Pac

HT Estates - - FRONT PAGE - Ramesh Nair ht­es­tates@hin­dus­tan­ The au­thor is CEO & coun­try head, JLL In­dia

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 proptech and has re­ported the most num­ber of deals since 2013, ac­cord­ing to the re­cent re­port Clicks and Mor­tar: The Grow­ing In­flu­ence of Proptech, jointly au­thored by in­ter­na­tional prop­erty con­sul­tants JLL 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 amount­ing to USD 928 fol­lowed by South East Asia, North­East Asia ex­clud­ing China and Hong Kong and Aus­trala­sia. Chi­naalonecom­mandsover60% of the to­tal deal value in the re­gion.A num­ber of fac­tors are driving the growth and ex­pan­sion of the proptech mar­ket in the coun­try.


The two largest emerg­ing mar­kets like China and In­dia 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.


The other big fac­tor is the pres­ence of mid­dle in­come pop­ula- tion of the coun­try that is tech savvy, bet­ter con­nected to the In­ter­net and use smart­phones. 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 en­duser,” says An­thony Couse, CEO, JLL Asia Pa­cific.


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 3Dprint­ing, robotics and drones along­side the rise of Smart Cities in the coun­try. “Tech­nol­ogy and real es­tate are con­verg­ing in ex­cit­ing ways. We’re al­ready see­ing the po­ten­tial of data an­a­lyt­ics, ar­ti­fi­cial in­tel­li­gence, the In­ter­net of Things, vir­tual re­al­ity and blockchain, to trans­form howwe in­vest in and oc­cupy real es­tate in the fu­ture,” adds Couse.


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 mar­ket­caused­by­fake list­ings or un­pro­fes­sional bro­kers, is a se­ri­ous chal­lenge to po­ten­tial home buy­ers. There is a real need for re­li­able in­for­ma­tion and pro­fes­sional ser­vice. There are op­por­tu­ni­ties for proptech firms who are able to serve the con­sumers most ef­fi­ciently and trans­par­ently,” says Vaib­hav Agrawal, As­so­ciate Part­ner, Light­speed In­dia Part­ners Ad­vi­sors.


It is there­fore, bro­ker­age and leas­ing in In­dia con­tinue to dom­i­nate over all other ver­ti­cals such as prop­erty man­age­ment, pro­ject man­age­ment and in­vest­ment and fi­nanc­ing. With e-com­merceris­ing in In­dia, con­sumers are turn­ing to the In­ter­net to pur­chase goods and ser­vices, thereby cre­at­ing the po­ten­tial for aro­bust on­line prop­erty mar­ket.But it is must be noted that such changes in pur­chas­ing habits would take time as most In­di­ans still pre­fer direct in­ter­ac­tions to set­tle prop­erty trans­ac­tions. Specif­i­cally, start-ups in bro­ker­age and leas­ing have re­ceived nearly 90% of to­tal Asia Pa­cific proptech fund­ing since 2012. How­ever, in com­ing years, pro­tech will have­more­toof­fer in In­dia with the reg­u­la­tion an­dris­ing trans­parency. The re­port adds that the de­mand for other ver­ti­cals and ser­vices such as res­i­den­tial home im­prove­ment, de­sign, and main­te­nance will in­crease in In­dia.

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