Technology in the real estate industry – or proptech – is fast becoming more than just a buzzword. And Asia Pacific is reaping the benefits of the burgeoning industry, receiving 60 percent (US$4.8 billion) of the US$7.8 billion raised by global proptech start-ups since 2013 to 2017.
Greater China and India emerged as the top two favoured markets for proptech start-ups according to research by JLL, which found that those in Greater China raised the most funding with approximately US$3.02 billion from 34 deals. In contrast, India is home to the highest number of proptech start-ups in Asia Pacific with its 77 companies raising a total of US$928 million.
JLL’s Asia Pacific CEO, Anthony Couse, believes that the results of the report indicate the size of the potential for proptech in the region as its youthful population, rapid urbanisation and ‘mobile first’ mindset, foster an ideal environment to accelerate the growth of new sectors and lead to “improved efficiency and better experience for technology users.
In fact, the report forecasts proptech funding in Asia Pacific to hit US$4.5 billion in 2020 alone as more corporates and developers in the region embracing proptech within their business strategies.
Earlier this year, Thai developer Sansiri launched Siri Ventures with an initial registered capital of 100 million baht (US$3 million) to create a network of 300 proptech start-ups by 2020. While, last year, Singapore-based Capitaland announced its new venture arm, C31, with US$74 million to invest in start-ups working on real estate innovations.
According to Couse, the next five years will be pivotal in the real estate industry as new technologies and trends such as Artificial Intelligence and the rise of Smart Cities transform business. “Many established sectors have experienced disruption,” he says. “It’s vital that real estate advisors, brokers, investors and start-ups recognise the changes and opportunities ahead.”
See the proptech investment infographic below to find out more about what’s driving proptech investment in the region and which markets are benefiting.
Click to read more about how why proptech has gained ground as a real estate selling point