A Comprehensive Guide to Proptech: Definition, Types & Top 6 Tools

The real estate sector is growing rapidly across the globe, and India is no exception. Over the past decade, India’s real estate market has seen impressive growth, and this trend shows no signs of slowing down. By 2025, the market is projected to contribute 13% to India’s GDP and is expected to reach $1 trillion by 2030.

The future of real estate is inseparably tied to the integration of cutting-edge modern technology. 

Real estate technology, or PropTech, is transforming how the sector operates—making processes faster, more transparent, and more efficient. From virtual property tours to AI-driven data insights and digital transaction platforms, PropTech is simplifying the way properties are bought, sold, and managed.

You might be wondering what exactly PropTech is and how it’s revolutionising real estate. Don’t worry—we’ll cover all of that in this blog, explaining how it’s changing the industry for the better.

What is Proptech?

Proptech, short for property technology, is the application of information technology and platform economics in the real estate industry. Simply put, it involves using digital tools and innovations to improve the way real estate is bought, sold, rented, or managed.

While the term ‘Proptech’ is relatively new, the concept of using technology in real estate has been around for decades. However, the recent explosion of digital innovations, coupled with changing consumer behaviours, has accelerated the growth and adoption of PropTech solutions.

The real estate sector started embracing technology to solve common problems like slow processes, inefficiency, and lack of transparency. The goal was to bring the industry up to speed with modern digital solutions.

PropTech also overlaps with FinTech, as innovations in financial technology enhance property financing, investment, and transactions.

PropTech can be divided into two primary categories: front-end technologies that users engage with directly, such as real estate apps, and back-end technologies that support these platforms, like data analytics, artificial intelligence, and cloud-based software.

What are the Types of PropTech Solutions?

PropTech includes a wide range of technologies used in the real estate industry, including:

Residential Property Tech

This refers to technology solutions designed specifically for the buying, selling, and managing of residential properties. Here’s a simple breakdown

Commercial Property Tech (CRETech)

This involves technology solutions tailored for the commercial real estate market, focusing on office spaces, retail locations, and other commercial properties. Here’s a simple breakdown:

Please note that certain solutions, like property management tools, can be used for both residential and commercial real estate.

Now, let’s look at a quick overview of PropTech's evolution over time.

The Development Stages of PropTech

Real estate has always been slow to embrace new technology, sticking to traditional methods for a long time. But as the industry grew more competitive and complex, things began to change. 

The need for better data management, faster transactions, and smoother communication pushed the industry to adopt digital tools. These technologies started solving real problems, from speeding up paperwork to offering smarter ways to manage properties.

The rise of Proptech can be divided into three stages:

1. Stage One (1980-2000): Early Computing and Investment Analysis

In the early days, real estate’s relationship with technology was limited to basic computing. It was mainly used for investment analysis and financial modelling.

During this time, real estate companies started using personal computers, spreadsheets, and software like Microsoft Excel. These tools improved over the years, becoming more advanced between the 1980s and 2000. This helped real estate professionals work more accurately and gain better insights into their investments.

2. Stage Two (2000-2008): Dot-com Bubble and Digital Listings

The early 2000s was the time of the dot-com bubble. This period saw the shift of property listing from print to online platforms. As the decade progressed, high-speed internet became more widely available, allowing real estate companies to move their data and services online.

This shift led to the creation of platforms like Zillow, where users could easily access property details, valuations, and advice—all in one place. 

3. Stage Three (2008-Present): High-Speed Internet, New Platforms, and the Sharing Economy

After 2008, thanks to the arrival of high-speed internet, smartphones, and new platforms, PropTech started becoming more advanced and sophisticated. PropTech startups began emerging with fresh ideas like virtual property tours, smarter property management, and even property sharing. 

The rise of the sharing economy, with platforms like Airbnb, further disrupted traditional real estate models. It offered new ways for people to rent and share properties.

In recent years, cutting-edge technologies like blockchain and artificial intelligence have started entering real estate. These technologies are gradually reshaping the industry, promising to make it more transparent, efficient, and accessible.

Growing Significance of Proptech

The impact of PropTech has skyrocketed in recent years, highlighting how much technology is reshaping this otherwise conventional industry.

Rapid Growth and Market Projections

Globally, the PropTech sector has experienced phenomenal growth. It was valued at $19.5 billion in 2022, and this is just the beginning. Experts predict that the market will continue to expand at a compound annual growth rate of 6.5% through 2030.  

The driving force behind this surge? Companies are increasingly understanding the importance of technology in improving their operations.

When it comes to India, the PropTech market is expected to grow at a rate of 9.6% from 2021 to 2025, with the potential to reach a market size of $100 billion by 2030. This impressive growth reflects a broader shift towards tech-driven solutions in the real estate sector.

Impact of COVID-19

We all know how the COVID-19 pandemic accelerated the adoption of technology in various sectors across the world. With face-to-face interactions limited, real estate companies also embraced digital solutions to keep their businesses going.

For example, landlords started using automated systems for tasks like tenant screening and lease management, while virtual tours helped potential buyers and renters view properties remotely. 

COVID-19 acted as a catalyst for digital transformation in real estate, pushing PropTech to the forefront as the industry adapted to new, tech-driven ways of operating.

Investment and Innovation

From FY 2011 to FY 2024, PropTech companies in India attracted around $4.6 billion in investments. This influx of funding highlights investor confidence in PropTech's ability to innovate and reshape the real estate industry. 

As technology continues to advance, PropTech's role will only grow more significant. 

Key Technologies Driving the Growth of PropTech

PropTech is being driven by several exciting technologies, and here are some of the key ones that are causing substantial disruptions in the sector:

Artificial Intelligence and Machine Learning (AI and ML)

There’s hardly any industry that is not tapping into AI and ML these days. These technologies are revolutionising the real estate industry by automating tasks and analysing data effortlessly. For instance, AI can help predict property prices, allowing investors to make smarter choices. 

Machine Learning takes it a step further by learning from past interactions to give personalised property recommendations.

Big Data Analytics

Using Big data analytics, real estate companies can gather and analyse vast amounts of information. The data can be used to understand market trends and customer preferences. The insights gathered from this analysis can help identify what buyers and renters are looking for, making it easier for them to find the right property.

For example, by analysing search patterns and demographic data, you can identify which amenities are most appealing to tenants and tailor your offerings accordingly. 

Additionally, big data helps you track market fluctuations and pricing trends so that you can make informed decisions on rental rates and investment opportunities. 

Blockchain and Tokenization

While blockchain has not yet established its presence in real estate, it holds great potential to change how we buy, sell, and invest in properties. One of its biggest advantages is that it can create decentralised and transparent processes.

With tokenisation, a property can be divided into several tokens that are stored on the blockchain. This allows fractional ownership–meaning individuals can invest in just a portion of a property rather than buying the entire thing. This approach makes real estate investing more accessible to a wider range of investors.

Virtual Reality (VR)

VR technology makes property hunting fun, exciting, and interactive. So, it’s no surprise that Goldman Sachs reported that approximately 1.4 million realtors will be using AR/VR technology by 2025.

VR provides immersive property tours so potential buyers can explore a property from anywhere in the world. 

Internet of Things (IoT)

IoT refers to the network of smart devices and sensors that can communicate and share data with each other over the internet. This technology tracks all the devices in a property and allows people to remotely control systems like lighting, security, and heating.

IoT can also help with predictive maintenance by monitoring the performance of equipment and alerting property managers to any potential issues.

ClimateTech and GreenTech

With the looming threat of climate change, every sector is looking for ways to become more eco-friendly and sustainable. In real estate, this shift is reflected in the construction of sustainable, energy-efficient homes, the use of smart grids and appliances, and the adoption of renewable energy sources.

A report from KPMG in India and Colliers shows that more developers are focusing on green and sustainable real estate. Although this shift can lead to higher upfront costs, developers see it as a way to achieve long-term benefits. The report also finds that green buildings can cut emissions by 35% and lower maintenance costs by 20%.

The world is constantly discussing ways to practice sustainability, so there is a lot more to come on this front!

Automation

Automation can streamline every part of your operations, from automating lead generation and sending reminder notifications to handling transactions and marketing campaigns. It also improves accuracy and efficiency, letting you concentrate on enhancing tenant satisfaction and expanding your business.

While we're at it, let's look at the top six PropTech companies in India.

Top 6 Proptech Companies in India [2024]

In this section, we’ll take a closer look at six companies that are making significant strides in the Indian PropTech market.

1. Crib

Founding Year: 2021

Crib is an award-winning property management app that specialises in providing innovative technological solutions for co-living spaces, hostels, paying guests (PG), and serviced apartment operators. With Crib, users can efficiently manage their properties and tenants through a simple and intuitive app.

Earlier, you needed different platforms for different tasks—payments, documents, messaging, verification, and more. Now, Crib provides one solution for everything. Plus, it's a white-label app, so you can customise it to match your brand.

Key Features:

• Effortless Tenant Management: With Crib, you can eliminate paperwork and enjoy hassle-free onboarding using digital signing. Plus, you can manage bookings, collect deposits, and track move-ins all in one convenient place.

• Interactive Tenant Portal: Tenants can access a user-friendly app to handle payments, submit service requests, receive important announcements, and book amenities, keeping them engaged and informed.

• Rent Management: Using Crib, you can collect rent online through multiple payment options, including net transfers and UPI. The app also sends automated WhatsApp notifications as reminders for rent payments.

• Financial Management: When it comes to finances, Crib helps you with everything from expense tracking to generating insightful reports. This ensures you always have a clear understanding of your financial health.

• Maintenance Management: Crib enhances the tenant experience by allowing easy submission and tracking of maintenance and repair requests.

• Sales Listing: With Crib, you can list your properties for sale to increase occupancy and get verified leads to easily connect with potential buyers.

Apart from this, Crib offers other valuable features like:

• Aadhar-integrated tenant verification for safety

• Instant settlements and automated reconciliation for smooth transactions

• Error-free billing and intelligent cost-splitting for electricity expenses

• Real-time tracking of room occupancy levels

• Up-to-date bed status for informed sales decisions

Supporting over 2,500 landlords and 200,000 tenants while managing more than ₹3,000 crore in rent, Crib is redefining the future of property management in India.

Best for: End-to-end property management.

2. Square Yards

Founding Year: 2014

Square Yards is a leading PropTech platform in India that simplifies the entire real estate journey. From searching for properties to securing home loans and managing rentals, Square Yards offers a comprehensive range of services. 

They use advanced technologies like data analytics and virtual reality to enhance user experience and streamline transactions. 

Key Features:

• Complete Real Estate Solutions: Covers everything from property search to post-sales services.

• Data-Driven Insights: Uses comprehensive property databases and market trend analysis to offer valuable insights for making informed investment decisions.

• Virtual Tours: Offers online property showings through video conferencing for added convenience and time-saving.

• Advanced Search Tools: Includes heatmaps, recommendation engines, and 3D visual aids.

By acquiring companies like Square Capital, Azuro, Interior Company, PropsAMC, and PropVR, Square Yards is enhancing its position in the market by covering the entire real estate value chain.

Square Yards is a key player in real estate technology, holding 12 patents in areas such as data intelligence, AI, machine learning, and VR/AR.

Best For: Real estate transactions, advisory services, and integrating advanced technology to enhance the buying experience.

3. Furlenco

Founding Year: 2012

Furlenco is India's first furniture rental platform. It caters to urban Indians who want beautiful living spaces without the hassle of owning furniture. 

By offering stylish furniture and home decor inspired by changing lifestyles, Furlenco makes it easy for users to customise their homes with just a tap. 

Furlenco integrates technology at every step—from browsing and selection to delivery and ongoing customer support—creating a seamless end-to-end furniture rental experience.

Key Features:

• Easy Customisation: Lets customers personalise their living spaces with one tap, making adjustments simple and hassle-free without visiting multiple stores.

• Data-Driven Recommendations: Uses customer data to analyse user preferences and suggest furniture and decor that fit their style.

• Subscription Model: Provides flexible access to furniture and appliances without the burden of ownership.

Best for: Flexible furniture solutions for modern living.

4. NoBroker

Founding Year: 2014

NoBroker is India's first PropTech unicorn that revolutionizes the real estate market by connecting property owners directly with potential buyers or tenants. True to its name, NoBroker removes middlemen from the process, eliminates brokerage and makes property transactions more affordable for customers.

With a vast database and advanced search tools, NoBroker makes it easy for users to find verified properties without the hassle of dealing with agents. The platform offers various services, including legal assistance, home loans, packers and movers and property management.

Additionally, it provides a dedicated payment gateway through NoBroker Pay for seamless transactions.

Key Features:

• Verified Properties: Ensures all listings are authentic through site visits and document checks.

• Personalised Recommendations: Uses AI and machine learning for tailored property suggestions.

• Conversational AI: Provides CallZen.AI, a conversational AI tool that improves customer interactions by delivering instant support and quick query resolution.

Best For: Direct owner-to-tenant property listings, eliminating intermediaries.

5. Infra.Market

Founding Year: 2016

Infra.Market is a prominent B2B platform that simplifies the procurement of construction materials for builders and infrastructure companies. By connecting clients directly with suppliers, Infra.Market ensures that users can easily find essential products like cement, chemicals, and other building supplies.

To ensure a smooth purchasing process, customer requests are analyzed by the platform and matched with suppliers. With competitive credit options and reliable delivery tracking, Infra.Market is one of Asia’s fastest-growing construction solution companies.

Key Features:

• Easy Marketplace: Customers can buy various construction materials and services all in one place.

• Credit Facilities: Provides reasonable credit options to support purchases.

• VR Technology: Lets customers visualise home interiors using virtual and augmented reality at their experience stores.

Best For: Efficiently Sourcing construction materials and supplies.

6. PropTiger

Founding Year: 2011

PropTiger is a PropTech startup founded by a team with extensive real estate experience in India and internationally. It provides expert guidance to help you find the perfect home, manage paperwork, and ensure transparency in every transaction.

The platform uses data and analytics to support decision-making and also offers tools that assist clients with housing loans and land registrations. 

Key Features:

• Data-Driven Insights: Uses data and analytics to help customers make informed decisions.

• PropView Feature: The innovative app feature lets users find properties within a five-kilometre radius using GPS technology.

• 4D Property Viewing: Allows home buyers to experience properties through realistic 4D viewing on their website.

Best for: Comprehensive support in home buying and property transactions.

The potential for PropTech in India is immense, and Indian startups are already advancing to change the industry landscape.

How PropTech Benefits Different Stakeholders in Real Estate

Here's how PropTech benefits the different players in the real estate ecosystem:

For Real Estate Agents

For real estate agents, PropTech provides valuable tools that simplify their work and improve efficiency:

• Automation of Paperwork: Digital document management and reporting systems reduce paperwork and save time.

• Cost Reduction: Efficient processes lead to lower operational costs.

• Self-Help Services: Chatbots and virtual assistants provide quick support, enhancing the client experience.

• Market Analysis:  Access to detailed market insights helps agents better understand trends and pricing.

• Easier Data Collection: AI-driven marketing helps gather and analyse customer data more efficiently for improved targeting and engagement.

• Virtual Property Showcasing: VR/AR technologies help agents promote properties more effectively and expand their reach beyond local markets.

For Landlords and Property Managers

PropTech offers numerous benefits for landlords and property managers, making property management more efficient and effective:

• Real-Time Insights: Provides real-time information on room and bed usage, shows how tenants are using the space, and highlights maintenance needs to keep the property in top condition.

• Effective Communication: Ensures quality communication with all stakeholders, keeping everyone in the loop and preventing miscommunication.

• Overall Financial Management: Simplifies income and expense tracking and provides customised reports on key metrics to help landlords manage their finances more effectively.

For Investors and Venture Capitalists

PropTech can help investors and venture capitalists in several ways:

• Improved Market Research: Predictive analytics can provide deeper insights into market trends and future opportunities, assisting investors to make more strategic investment choices.

• Direct Contracts: By removing the middleman, investors can secure contracts directly with owners, streamlining negotiations and reducing costs.

• Portfolio Management Tools: Allows investors to track and manage multiple investments in one place. This is helpful for investors who may not have the time to oversee each investment individually.

• Seamless Transactions: By using e-signatures, online payment systems, and digital document management, investors can save time and close deals faster.

Emerging Trends and the Future of PropTech

The PropTech industry is changing quickly, driven by new technologies and shifting market needs. The COVID-19 pandemic accelerated this growth, pushing the industry to embrace technology like never before. 

In India, PropTech is becoming a promising sector, with over 6% of total recognised startups focused on real estate technology. As more people in Tier-II and Tier-III cities get internet access, PropTech has a great chance to unlock opportunities in both rural and urban areas.

Several emerging trends are responsible for Proptech’s anticipated growth. One of them is the rapid increase in co-working and co-living spaces, with platforms like Crib setting the standard by providing services that meet the changing needs of modern tenants.

Social media is also playing a significant role in how properties are marketed and sold. Advancements in blockchain, machine learning, and AI are further transforming the sector. As these trends continue to evolve, the future of PropTech promises increased efficiency, better user experiences, and more sustainable real estate practices.

If you're looking to stay ahead in this evolving market, consider using innovative platforms like Crib. With its smart solutions for property management, Crib is designed to help landlords and property owners run properties more efficiently.

Want to know more? Crib is just a WhatsApp message away! Connect with us to get your queries answered.

Frequently Asked Questions: FAQs

What are the products of PropTech?

PropTech products consist of a wide range of technologies, including property management software like Crib, AI solutions such as chatbots and predictive analytics, virtual tour platforms, and online payment systems.

Why Invest in PropTech?

By investing in PropTech, you are investing in a future driven by innovative technologies that can greatly enhance your business operations. Powered by disruptive tools like AI, big data, and automation, PropTech can help you streamline processes, reduce costs, improve customer experiences, and make data-driven decisions that lead to better investment outcomes.