The UK is leading proptech investment into Europe and has
attracted five times more investment than Germany, according to a new report by
the University of Oxford.
As of June 2019, some $5bn (£3.8bn) has been invested in 805 UK
proptech companies, according to the report from the Oxford Future of Real
Estate Initiative at Saïd Business School.
In the past two years, investment in proptech has grown twice as
fast as the fintech market.
The report predicted that tech giants such as Amazon, Apple and
Facebook will build their own proptech services, as each made inroads in the
sector in 2019. One example is Facebook’s announcement in October of its $1bn
(£765m) affordable housing initiative.
The report indicates the tech behemoths may leverage the data
they hold to create proptech services.
Proptech and traditional real estate firms that are in pole
position are those using data in new and interesting ways, for example to
create efficiencies or solve problems like sustainability, it said.
Proptech is maturing, the report added, as the number of new
startups has fallen as investment has increased.
Investment is coming from traditional venture capital funds,
proptech accelerators and specialist funds. Globally some 400 established real
estate companies have invested in at least one proptech company.
“Our report demonstrates that the PropTech movement is reaching
a critical mass,” said professor Andrew Baum, leader of the Oxford Future of
Real Estate Initiative. “Regulatory roadblocks remain, but the first companies
to overcome them will reap huge rewards. 2020 looks set to be a year of
disruption for the real estate industry.”