Real Estate Companies Underinvest in Technology, Expert Reveals
Brigade REAP, launched in 2016, mentors early-stage start-ups in real estate tech, while The Earth Fund focuses on scalable solutions. Despite the potential, real estate companies are spending less than 1% of their revenue on technology.
Real EstateTechnologyInvestmentProptechSustainabilityReal EstateApr 29, 2025
In a recent interview, Shankar highlighted the importance of technology in the real estate industry. She pointed out that while other industries are leveraging technology to improve efficiency and customer experience, real estate companies are lagging behind. 'The real estate sector is ripe for disruption, and technology can play a pivotal role in transforming it,' she said.
To address this gap, Brigade Group, one of India's leading real estate developers, launched Brigade REAP in 2016. Brigade REAP is an accelerator program that mentors early-stage start-ups in real estate technology, or proptech. The program aims to identify and nurture innovative solutions that can enhance the real estate value chain.
Shankar, who is the founder of Brigade REAP, explained that the program has already mentored several promising start-ups. 'We have seen a wide range of ideas, from smart home solutions to data analytics platforms,' she said. 'These start-ups are not only improving the operational efficiency of real estate companies but also enhancing the customer experience.'
However, the challenge lies in convincing established real estate players to invest in these technologies. Shankar believes that the key is to demonstrate the tangible benefits of technology. 'When we show real estate companies how technology can reduce costs, increase profitability, and improve customer satisfaction, they become more willing to invest,' she noted.
In addition to Brigade REAP, Brigade Group has also launched The Earth Fund, which focuses on developing scalable solutions for environmental sustainability in the real estate sector. 'Sustainability is no longer a niche concern; it is a crucial aspect of real estate development,' Shankar said. 'Through The Earth Fund, we are working on projects that not only reduce the environmental impact of buildings but also create healthier living environments for residents.'
Despite the efforts of programs like Brigade REAP and The Earth Fund, the overall investment in technology by real estate companies remains low. Shankar attributes this to a combination of factors, including risk aversion and a lack of awareness about the latest technological advancements.
To bridge this gap, she emphasizes the need for collaboration between the real estate industry and the tech community. 'Real estate companies should actively seek partnerships with tech firms and start-ups,' she said. 'By doing so, they can stay ahead of the curve and position themselves for long-term success.'
The future of the real estate sector is closely tied to its ability to embrace technology. As more and more companies begin to recognize the value of tech investments, the industry is poised for a significant transformation. 'The real estate sector is on the cusp of a technological revolution, and those who are willing to adapt and invest will emerge as the leaders of tomorrow,' Shankar concluded.
Frequently Asked Questions
What is Brigade REAP?
Brigade REAP is an accelerator program launched by Brigade Group in 2016. It mentors early-stage start-ups in real estate technology (proptech) to enhance the real estate value chain.
How much do real estate companies typically spend on technology?
Real estate companies typically spend less than 1% of their revenue on technology, according to Nirupa Shankar, a prominent figure in the industry.
What is The Earth Fund?
The Earth Fund is an initiative by Brigade Group that focuses on developing scalable solutions for environmental sustainability in the real estate sector.
Why is it important for real estate companies to invest in technology?
Investing in technology can help real estate companies reduce costs, increase profitability, and improve customer satisfaction. It is also essential for staying competitive in a rapidly evolving market.
What challenges do real estate companies face when investing in technology?
Real estate companies face challenges such as risk aversion, a lack of awareness about the latest technological advancements, and the need for clear demonstrations of the tangible benefits of technology.
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