Proptech Innovation To Boost in Asia with $3 Billion Investment

Proptech Innovation To Boost In Asia With $3 Billion Investment


A tech revolution in the real estate industry has been long pending but new reports reveal that it may come sooner than we think. At the moment, 300 million Chinese have in the past or currently used food delivery services on the web, whereas 10% of China’s population has signed up for some kind of ride hailing app. While people think this is a tech innovation that have supported them to great extents, new sources reveal that the new innovations will be coming to the real estate industry as well.

Canada’s real estate and data software provider Altus Group reveals that Blackstone and Brookfield will be venturing in the real estate technology or as we popularly know proptech. The same market has received $4.8 billion for proptech funding in the last 5 years as well.

The interest in Proptech seems to show that the real estate industry is going to get the brunt of tech revolutions as well. According to the CEO of Altus Group, Robert Courteau, in the last year, there has been a big change in the market. There is a transition towards consumer led paradigms, which is seen in the big players as well.

The thing with big companies such as Brookfield and Blackstone is that they are investing in proptech directly. Or in a way, they are also promoting the world partners to adopt a large number of technology in their day to day use. Therefore, there are more proptech apps in the market such as China and Hong Kong as well as other areas of Asia.

Blackstone has a huge chunk of money under real estate management, about $120 billion. It is currently also backing many proptech initiatives such as the New York based leasing or VTS, the asset management platform in 2015. It is also being believed that in the coming run, US private equity giant will also be investing in different proptech firms to provide increasing opportunities for global businesses and to ensure that their real estate ventures are better managed and processed.

In 2018, Proptech firms are going to get $3 billion as a part of development and growth in these sectors. It is also being reported that these funds will go to Asian startups which work to facilitate both leasing and brokerage along with financing, investment and project development.

Proptech investments in Asia have grown rapidly and from Jan-Nov last year, the Asia Pacific alone accounted for $566 million in the proptech sector. Moreover, in the Asia pacific region, the Proptech companies ended up generating $4.8 billion in funding in the last 4 years. The main motive for these firms came from JLL found.

On the other hand, while Hong Kong and Singapore have been slow in adopting the mainland technology, sources reveal that both these countries are going to experience a large inflow of capital for proptech technology in the years to come. According to Courteau, “Hong Kong doesn’t have it yet and it is quite behind San Francisco and New York but it will still come to the nation”.


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