Research - AUGUST 15, 2018

Investor confidence in proptech sector hits all-time high

by Andrea Zander

Investor interest in commercial real estate technology is growing from an increasingly diverse array of investors, according to MetaProp’s biannual “Mid-year 2018 Global PropTech Confidence Index."

The index reports it’s currently at 8.7 out of 10, which is up from 8.0 at the end of 2017. Ninety-six percent of investors plan to make the same or more proptech investments during the next 12 months; this is up 76 percent from the year before. 

Approximately 75 percent anticipate more company-level acquisitions to take place over the next year. Respondents also said that 36 percent of proptech investments are exceeding expectations in terms of customer growth (up from 21 percent at the end of 2017).

The firm cited a significant influx in investment dollars in proptech companies in recent years, noting how the $12.6 billion poured into proptech startups in 2017 was up three-fold from the $4.2 billion invested in 2016. Recently, JLL launched JLL Spark Global Venture Fund, a $100 million fund and Colliers International launched Colliers Proptech Accelerator in partnership with Techstars. And Brookfield has plans to invest $300 million into technology, including real estate. ​

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