Proptech Market to Hit $600 Billion by 2047: Credai-EY Report

The proptech segment in India’s real estate market is projected to surge from $10.5 billion to $600 billion by 2047, according to a report by Credai and EY. Proptech, currently accounting for less than 5% of the $300 billion real estate sector, is expected to grow to 12-13% of the anticipated $4.8 trillion market by 2047.

The report, unveiled at Credai’s 25th foundation day, highlights the role of innovations like Artificial Intelligence (AI), Internet of Things (IoT), and Building Information Modelling (BIM) in streamlining operations, reducing costs, and improving transparency. It emphasizes proptech’s transition from a facilitator to a growth driver, significantly enhancing operational efficiency and margins.

Credai has also urged the government to redefine affordable housing by revising the current dual threshold of ₹45 lakhs and 90 sqm for non-metro areas and 60 sqm for metros. Rising inflation, higher raw material costs, and increased land prices have rendered these thresholds financially unviable. Credai suggests raising the limit to ₹90 lakh and introducing flexible GST schemes for developers, such as a 1%/5% composite scheme without input tax credit or a 12%/8% scheme with ITC.

Additionally, Credai recommends zoning reforms and streamlined land acquisition policies to ensure land availability. It advocates developing planned satellite towns near major cities to decongest metros and promote regional growth. Other proposals include a housing finance guarantee scheme and flexible floor space index (FSI) payment options.

Boman Irani, Credai President, stated, “Indian real estate is at an exciting junction driven by urbanization, technological integration, and sustainability. This growth aligns with the nation’s Viksit Bharat mission for 2047.” Credai Chairman Manoj Gaur highlighted the need for forward-thinking strategies to address urban congestion and meet the housing demands of India’s expanding middle class.