Karnataka Introduces India's First Circular Economy Policy Mandating Sustainable Construction Materials

Karnataka is developing India's inaugural circular economic policy, which will require 20% of construction materials to be sustainable, according to State Minister Priyank Kharge. This policy aims to minimise waste through methods like recycling and composting. Such approaches are gaining global traction to address climate change challenges. Kharge shared these insights at Propagate 2024, an event by Brigade REAP in Bengaluru, focusing on proptech innovations.

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Proptech's Role in Real Estate

The summit gathered experts discussing technology trends and the factors needed for proptech growth. Kharge highlighted Bengaluru's transformation from a pensioners' haven to a dynamic city due to Karnataka's policies. He stressed the importance of collaboration between the government and real estate sector for a sustainable future. Proptech is seen as a key driver in this growth, with Bengaluru leading the way.

Nirupa Shankar, Joint Managing Director of Brigade Group, emphasised the integration of technology in real estate development. She noted that technology now influences every stage, from planning to building operations. The focus has shifted beyond speed and efficiency to include safety and sustainability. Shankar believes it's crucial for companies to ensure environmentally friendly development.

Banking Innovations in Real Estate

Amit Kumar from Kotak Bank addressed challenges in real estate, such as complex cash flows and fragmented regulations. He suggested using India's tech stack for simplifying processes like KYC through Aadhaar and Digi Locker integrations. Blockchain could enhance transparency in property transactions and land registration. Kumar also mentioned AI's potential in credit assessments and virtual property tours.

The digital landscape is reshaping real estate, with 62% of value-based transactions in India now via UPI. This shift from P2P to B2B and B2C ecosystems offers significant opportunities for the sector. Faster transactions and reduced costs are among the benefits of this digital transformation, Kumar added.

Kharge reiterated Karnataka's commitment to working closely with the proptech sector for a sustainable India. He noted that while other regions focus on slogans, Karnataka is making tangible progress. The state boasts strong policies, talent, and an incubation system but needs more grade-A commercial buildings.

Over 500 delegates from industry and academia attended Propagate 2024, highlighting the event's significance in shaping the future of real estate through technology and innovation.