India’s Real Estate Innovation: PropTech Powers $16 Billion Affordable Housing Growth

India’s affordable housing sector is driving growth in PropTech investments. A recent study by HDFC Capital, Brigade REAP, and Knight Frank reveals that this segment will grow at a 15% CAGR. The market size is expected to rise from $6 billion in 2023 to $16 billion by 2030.

Affordable housing is gaining momentum due to strong government initiatives and industry collaboration. The real estate sector contributes 7.3% to India’s GDP, with PropTech making up 2.3%, valued at $6 billion. Nirupa Shankar, Joint Managing Director of Brigade Group, noted, “India’s young workforce is creating huge demand for affordable urban housing.”

Technology plays a key role in overcoming challenges in housing supply. Programs like HDFC Capital’s H@ART aim to mentor and invest in real estate technology companies. These initiatives make housing more accessible while driving efficiency and transparency in the sector.

“PropTech reduces costs, improves efficiency, and ensures sustainability,” said Ghulam Zia, Senior Executive Director of Knight Frank India. He added that it optimizes resource usage, cuts energy consumption, and improves building performance, creating greener cities.

Experts stress the need for a strategic approach. This includes sustainable construction, advanced infrastructure, and leveraging PropTech innovations. Such efforts aim to build resilient urban spaces while addressing housing demand.

India is set to lead a housing transformation. With proper planning, affordable housing can meet the needs of all income groups and strengthen the real estate market.