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Proptech - statistics & facts

When buying a piece of real estate, there is much more that goes into the process than a simple financial transaction. It can be exceptionally complicated and time-consuming; involving property zoning, compliance inspections, and seemingly endless contracts and affidavits. There is a new category of products, websites, and mobile apps known as “proptech” that is designed to streamline and modernize the cumbersome process of browsing, buying, and building real estate. Proptech is short for property technology and is sometimes referred to as real estate technology. It can extend to smart building technology, space management, and architecture. 2021 saw the highest value of proptech investment on record, at over 24 billion U.S. dollars. Multifamily real estate is the top type of real estate asset that proptech startup CEOs have chosen to focus on.

Industry trends

Technological innovation is allowing companies to improve the efficiency of existing processes and introduce new products and services. Some of the most potent disruptors in the real estate sector according to industry experts in the U.S. are cybersecurity, construction technology, big data, the internet of things, and artificial intelligence. Worldwide, commercial real estate executives were planning tech budget increases of between eight and 12 percent depending on the region. The growing proptech workforce is another indication that the sector is to continue growing: According to a global survey conducted in 2021, one in four of the proptech startup CEOs surveyed was planning to hire more than 20 full-time employees in the coming year. For a proptech startup to grow, especially in its early stages, it needs capital investment. The seed and series A were the funding stages most popular among investors in 2021.

Insight into different regional markets

The United States and China are the countries with the most proptech investment worldwide. As of the first half of 2022, the U.S. saw 61.1 billion U.S. dollars in proptech investment – more than any other county worldwide. In the Asia-Pacific (APAC) region, China and India led the ranking with 12.5 billion U.S. dollars and 9.1 billion U.S. dollars, respectively. In Europe, the top three countries were Spain, the UK, and Germany. ServiceTitan, houzz, FIGURE, and Plume are just some of the many proptech unicorns in the United States. To classify as a unicorn, a startup needs to exceed one billion U.S. dollars in valuation before going public. Though there is often a connotation that proptechs are startups, that is not always the case: Whether media portals or operating in the real estate data and software segment, many of the companies pushing technological innovation in real estate are public and exceed several billion U.S. dollars in equity value.

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