What the real estate world witnessed through the pandemic leaves little doubt that digitalisation, which grew at a much faster rate in the past year, was the sole reason the sector survived.
With that, it is only expected that going forward, the real estate industry will see continued technological disruption in some way or form.
But what do the numbers say? Per MetaProp’s latest
Global PropTech Confidence report, confidence among both startups and investors has continued to grow as real estate continues to adopt technology.
Zooming In
Here are the key takeaways;
📍 Investor confidence hit 8.9 on a scale of 10 in mid-2021, while startup confidence was at 8.3 – an all-time high. This rise in confidence on both sides is being driven by continued IPOs, M&A transactions and large private venture funding rounds.
📍 Around 41% of investors reported that their proptech portfolio companies were performing better than expected – an all-time high and up from just 13% in mid-2020.
📍 Smart buildings (43%), architecture, engineering and construction (19%) and space management (14%) are the segment wise priorities for proptech investors.
📍 Sectors that investors are most interested in - offices at 30%, followed by mixed-use (22%), multi-family/build to rent (21%) and industrial (11%)
📍 Consolidation, growing acquisitions and greater adoption are the biggest changes investors expect in proptech's near future.
📍 Target markets of global proptech firms - Residential comes out on top, with 48% targeting single family homes and 57% targeting multi-family.
More than half (53%) of startups are eyeing office tech, while over a third are targeting mixed-use (38%), retail (37%), hospitality (34%) and industrial (33%).
👍 What's remarkable is how quickly the tech is adapting to the dynamic needs of every stakeholder of the real estate industry.
