Startups
Greg Polec, 2019-06-19

Proptech. A fast developing industry. Why is it worth to keep an eye on it?

Proptech is a fast and dynamically growing industry that attracts more and more the attention of startups and investors around the world. We could say that it is revolutionizing the real estate market. Proptech offers innovative technological solutions that bring industries to a new and better level while increasing revenues.

Proptech is a fast and dynamically growing industry that attracts more and more the attention of startups and investors around the world. We could say that it is revolutionizing the real estate market. Proptech offers innovative technological solutions that bring industries to a new and better level while increasing revenues.

Proptech is a combination of real estate and technology. This is a relatively young concept that has recently gained a lot of interest around the world. The aim of the companies from the Proptech industry is to improve and modernize the processes of searching, buying and finding apartments. Using innovative technological solutions Proptech companies intend to increase customer satisfaction, offering extensive development opportunities.

I have to say that I was especially interested in the Proptech industry at the EU-Startups Summit in Barcelona in May. Some really fascinating startups from Europe participated in the conference and they had the opportunity to present their product. I have heard a lot of positive buzz about this industry. For example, I found out that many investors from the United States are looking for Proptech companies in Europe for investment purposes, due to perspectives of rapid development.

Since then, I have decided to get a broader knowledge of Proptech. Honestly, I am very impressed with the potential and opportunities that this industry has to offer. This is a relatively new market trend, so I am convinced that it will soon develop even more and we will all hear about the success of Proptech companies.

Meanwhile, take a look at really fascinating facts and statistics related to this sector. It should allow you to envision its potential.

Potential of Proptech Industry

Hot statistics and interesting facts about Proptech:

1. USD 10,15 billion. This is the current (January - August 2019) value of investments in Proptech companies worldwide.

2. Total Proptech Funding Globally in 2018 was USD 14,85 billion.

3. It has got off to a good start in January 2019 - a total investment was USD 1.34 billion.

4. Above 100 deals. This is the number of real estate tech acquisitions and merges worldwide in 2018. In 2019 the number is rapidly increasing.

5. 35% of surveyed investors believe that smart buildings are the most desired area of innovation for Proptech.

6. In 2017, over USD 13 billion was invested in various Proptech companies from around the world.

7. The number of Proptech startups is rapidly increasing, flowing into the real estate industry. What's more, surveys carried out by statistica.com show that 65% of respondents expect that Proptech companies will be critical to the development of commercial real estate in the world.

8. It is estimated that over 30% of investors in the commercial real estate market want to invest in Proptech. And 26% plan to start cooperation with them.

9. Proptech is a response to the challenge of maintaining high tenant satisfaction. 97% of building managers declare that this is the most important priority for them.

10. 61% of real estate companies declare that the current technology investment will positively affect the industry's revenues in the upcoming years.

Impressive, isn’t it?

Most promising Proptech companies in Europe

I have just prepared for you a shortlist of Proptech companies from Europe, whose expansion is worth following. These are mostly startups that have already achieved significant success or are on the way to great development. I am convinced that it is worth giving a closer look at their business profile. The products they are developing are especially interesting.

Housing Anywhere from Netherlands. It is an international student housing platform for exchange, internship, volunteer, and expats alike. That is a really great tool for people who want to find and book a new place, while abroad.

Promodomo also from Netherlands. This is an open and transparent platform that helps you find a dream home or to sell your own house, simply and conveniently.

Aroundhome from Germany. A platform where you can find real estate, houses, office space for sale and for rent. Qualified experts will guide you towards the right choice tailored to your needs and help you find the best offer for you.

Ziggu from Luxembourg. It offers a cloud solution for Real Estate Developers operating in residential markets to manage sales, constructions, and customers.

Homelike from Germany. It gives you a platform where business travelers and companies can book furnished apartments with just a few clicks.

Hausgold from Germany. It is a platform that will help you sell your property with success and profit. The entire process will be coordinated by experts.

Justlanded from Spain. The platform was created to help people moving to live, work, and study abroad. It provides information-packed guides, job market, housing portal, classifieds, business directories, and an expat community to meet and exchange experiences...

...and more.

Fronented Report for 2020

These are some of the remarkable new startups on the Proptech industry, but I could add to this shortlist many more companies such as Casa.it (Italy), At home (Luxemburg), Kyero (Spain), Hemnet (Sweden) or Venuu (Finland). As you can see, the number of Proptech companies (also taking into account their annual profits) proves the potential of this industry. The leader of Proptech in the world is the USA, but don’t forget about Europe. Spain, Italy, Germany, Luxemburg, Sweden, and Finland - the list looks impressive.

I have no doubt that Proptech is one of the most fascinating industries currently developing. If you study this topic a little deeper, you will find out for yourself. I can recommend you to check the Unissu website, where you can explore even more curious data and facts about Proptech.

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