Tamil Nadu has a well-balanced economy, with contributions to India’s GDP coming from not only Chennai but also smaller cities like Coimbatore, Salem, Tiruchi and Madurai — the emerging hotspots in the State. With planned infrastructure and economic development, these emerging hotspots are expected to drive the State’s economy in the future.
PropTech, also known as property technology, is the nexus of the real estate sector and technology. As Internet penetration and digitisation become pervasive in emerging (Tier II and III) regions, PropTech is emerging as a promising area in the Indian real estate market. The PropTech industry is the next significant development to keep an eye on as it has the potential to promote promising institutional investments, and much more.
Each subset of PropTech (Real estate marketplace, Real estate Software, Property management, Property brokerage, Lease management, Construction technology, Sustainable building technology, Property Investment and Financing, Home automation, Real estate Marketing etc.) serves a specific use case within the industry.
Currently, the Real Estate sector contributes 6-7 per cent to the country’s GDP. In 2030, the sector might be worth more than $1 trillion, and by 2025, it could potentially contribute about 13 per cent of India’s GDP, according to the Indian Brand Equity Foundation (IBEF).
LegalTech is the application of technology to the delivery of legal services, the streamlining of legal procedures and the enhancement of access to justice. The enhanced accessibility of legal services in India is one of LegalTech’s most important advantages.
The LegalTech industry has witnessed tremendous expansion in certain subsectors such as Litigation management, Legal research analytics, Legal filing, Case management and analytics, Court management, Evidence management, Contract management, Online dispute resolution, Social media discovery, Legal Service Marketplace etc.
The LegalTech sector is booming as a result of the opening up of a sizable domestic market for legal services (about $1.3 billion) to technological interventions and validation of innovative technology-led business models.
RegTech (Regulatory Technology) aims to change the regulatory landscape by offering technologically cutting edge answers to the ever-increasing compliance obligations. RegTech responds to the transition from reactive to dynamic regulation and answers the urgent demand for openness and flexibility in contemporary regulatory systems.
Each sub-sector of RegTech (Regulatory Risk management, Compliance management, Real-time transaction monitoring, Real-time reporting, Decision-making, Data analytics etc.) addresses a certain industry use case.
The global RegTech market is expected to reach $28.33 billion by 2027 and US$ 45.3 Bn by 2032. In India, RegTech received a funding of USD 229 million in Q3 2023, which is a growth of 100 per cent, compared to the funding in Q2 2023, as per a Traxcn report.
PropTech Startups make up more than 6% of all officially recognised Startups in India. In terms of overall capital raised throughout sixty-six rounds, the nation ranks fourth globally (for this industry), having raised about $89.1 million.
The number of people employed in the sector is also expected to rise to seven crore in coming years, from 5.5 crore in 2019. It is estimated that around 88 crore people will be living in urban areas by 2051, as against the current population of 46 crore, creating huge potential for real estate development.
According to CIIE.CO, India spends 0.48% of its GDP on legal expenses. With more than 650 Startups, India is the second-largest market for LegalTech Startups worldwide. Also, LegalTech Startups in India have received $55 million in investment as of March 2022. Modern technology and entrepreneurial spirit may be able to address the inefficiencies present in the legal services industry. Although the industry is still in its nascent stage, it is benefiting from significant tailwinds like the growing digitization of court procedures.
Due to a number of variables that make the PropTech, LegalTech and RegTech sectors appealing for investment and growth, these sectors have increased market potential.
The robust educational system in Tamil Nadu generates a consistent flow of highly qualified specialists in engineering and technology disciplines. These industries require a highly educated workforce, which guarantees a talent pool for doing business in the State.
To attract new businesses, the State Government provides a range of incentives, such as tax breaks and subsidies. The efficiency of doing business in Tamil Nadu is further increased via streamlined approval procedures.
Collaboration among businesses, research organisations and educational institutions is supported by Tamil Nadu’s ecosystem. Such alliances promote innovation and drive industry expansion.