The volume of capital investments in the PropTech segment is growing every year. Experts talk about amounts of $10-13 billion, where the largest share of investments is made by the US and Chinese markets. Startup for real estate is an interesting area that attracts businessmen and companies willing to invest in the development of the project.
Real estate startup: overview of the PropTech segment development
A large consulting company JLL organized a venture fund, which aims to invest in new projects. The condition for the investment is the orientation of the startup – it must produce products to improve the sphere of real estate development, help realtors or tenants. For testing projects, the company has selected laboratory buildings in different cities around the world. This approach will improve the development, in the shortest possible time and in real conditions to identify all the errors and correct them.
The PropTech business area is a new field that is only being developed. Many startups have not yet shown their maximum efficiency. But at the same time 70% of companies, whose activities are related to the real estate market, are ready to introduce innovative products. 30% are not yet ready for such developments and prefer to wait until the project shows the first positive results.
Experts predict the success of startups that solve the problem of automation in the real estate segment. Also relevant are products, programs for data analysis, development related to artificial intelligence.
For 5 years there has been MIPIM Startup Competition – a competition, where prospective startups for real estate are selected. It consists of several stages, where participants are evaluated on a number of criteria: usefulness and relevance to the market, quality, convenience of solution and others.
This year, six projects from different countries became leaders. First place went to Spaceti startup, second and third to Tatami and Kwant.ai.
Czech company Spaceti has existed since 2016. Its product is designed to automate processes in the segment of office real estate. The application allows booking premises for various business events, facilitates transfer and undertakes a number of other tasks.
American-Japanese startup Tatami is engaged in the development of construction modules that allow high-quality and short time to erect objects. This system reduces construction costs and optimizes the work at each stage.
Startup Kwant.ai has developed a product aimed at improving safety in building construction. It is based on a sensor network that collects data from the construction site, analyzes it and provides recommendations for optimal planning and performance.
The JLL Investment Fund intends to continue to support the development of the direction. It is important to increase the number of startups for real estate, which will improve the segment and offer quality services to customers.
