Although the real estate industry is the world’s largest asset class, it has been experiencing a delay in technology integrations. However, with the rise of property technology (PropTech) market, there have been many new startups innovating the commercial real estate landscape. They are minimizing inefficiencies through developing software and applications to improve the way property is built, maintained and purchased. Combining robust technology with property technology, the industry is moving into a new niche, propelling it forward. Driving unprecedented interest from investing communities, there are great opportunities for entrepreneurs to take advantage of the untapped technology in the real estate market and prompt significant growth.
Classified by the World Economic Forum, PropTech can be divided into three categories, including PropTech 1.0, 2.0 and 3.0. The PropTech 1.0 generation was characterized by the internet boom, as real estate agencies began moving their business and listings to the online marketplace. This generation was followed by PropTech 2.0, where advancements in technology and computing enabled the real estate industry to expand into offering more specialized services. This led to the rise of various startups, operating in the shared economy, real estate fintech, and smart real estate sector, yielding great growth and profitability. The third wave was with PropTech 3.0, as new technology allowed for innovation in the real estate market, leveraging virtual reality, artificial intelligence, big data, 3D printing and cryptocurrencies, all of which are currently playing a significant role in advancing the industry.
While providing long-term solutions to simplify complications in real estate, the continuous growth and innovation in PropTech has deemed it a popular selection for various investors. Many PropTech startups, such as Homelink and OpenDoor Labs have received valuations exceeding $1 billion dollars. Venture capitalists are also recognizing the prospects in the digital transformation of the industry, with investments exceeding $10 billion (2019) in the U.S. market alone. However, understanding this newly emerging market can be difficult to navigate and keep up to date with due to the continuous innovations, thus requires investors to follow the news, publications and other informative resources.
The PropTech Investor is a publication that offers extensive insight into the PropTech market and helps you learn about rising PropTech startups.
