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Real Estate Technology or Property Technology which is referred to as PropTech is composed of real estate companies that use technology to make real estate transactions more efficient. These startups use technologically innovative products and new business models in the property market. Their number is far more than one can think. According to Jones Lang Lasalle (JLL) and Tech in Asia‘s research, only the startups in the Asia Pacific area made around 60 percent of over US$7.8 billion invested in PropTech worldwide since 2013. This makes up almost US$4.8 billion in funding.
“There are probably dozens of companies that you haven’t even heard of yet that are competing to get out of the basement and into your boardroom,” said MetaProp NYC partner Zak Schwarzman at a meeting with Real Property Association of Canada.
Investment Rises in PropTech
Several PropTech companies have reached the $1-billion valuation mark in 2016, including a network of real estate brokers called Compass; a Chinese real estate portal Homelink; a multi-site property management tool SMS Assist; and an algorithm for buying and selling homes online Open door.
According to Schwarzman, the financial giants are putting money into this sector “in a big way” saying a lot of investors have changed the attitude toward new technology in a far more favorable aspect.
Here are some PropTech companies that perform well in the market.
MetaProp NYC has invested in more than 80 companies. Since a lot of traditional real estate firms are actively seeking opportunities for new technology, the mergers and acquisitions are expected to increase in the coming years.
The company focuses on areas like agriculture, construction efficiency, engineering, on-site energy and access control.
Spacious monetizes dormant daytime restaurant spaces. The company turns these restaurants into a network of managed co-working spaces. Spacious’s membership is rapidly growing although its capital expenditures are 30 times lower that WeWork.
“It’s a great way to bring new customers into your space if you’re a restaurateur,” said Schwarzman. “It’s also incremental revenue to you for a period when you previously made zero dollars.”
Huthunt is a renting platform that helps people who are looking for roommates or apartments in a socially collaborative way. What they do is that they help people to find apartments and share it with a person you would like to live with.
hOM is a technological amenity provider. It partners with residential and office properties and organizes on-site fitness programs and unique events for tenants.
The focus area of Bowery is the commercial appraisal space. The company provides appraisers with a cloud based commercial appraisal writing software and mobile pp. The appraisers have the chance to write appraisal report twice as fast with the app compared to their competitors.
A lot of home builders now understand the importance of PropTech and the real estate market is going to witness a future that does not look like anything before.