PropTech: Trends with Potential for Ambitious Tech Startups
PropTech or property tech funding has slowed since the dizzy heights of 2021. However, companies across the industry still received $1.2 billion worth of investment in Q1 2023. While more companies are finding funding, those funding amounts seem to be decreasing, indicating less motivation for investors to take risks. Consequently, startups in the PropTech scene need to ensure their offering is highly targeted and innovative to gain the right attention.
What PropTech trends could prospective real estate innovators be looking at for inspiration for their next big idea?
Making Renting Easier
Renters want landlords they can trust. Landlords want reliable and solvent tenants. Agents want to bring landlords and tenants together with ease. So many aspects of renting benefit from industry-aligned software based on real-life pain points.
Virtual tours allow renters to “visit” multiple properties without taking up an agent's time or spending money on transport. Apps like OpenSignal help prospective tenants assess the strength of cell phone signals and Wi-Fi capabilities at a property. Platforms like Spike provide simple ways for renters to connect with building managers, increasing tenant satisfaction and retention. While mortgage rates remain prohibitively high, any startup that can improve the renting sector could potentially attract major interest.
Fractional Ownership Management
Fractional ownership means owning a partial stake in an asset, like a house or apartment. As house prices rise, owning a second or vacation home is a dream for most. Fractional ownership means multiple parties can take advantage of a single empty property.
Flyway is one example of a fractional ownership management app. The service helps prospective owners choose a level of ownership, manage costs, and decide when they want to stay at the property. Flyway raised $10 million in seed and debt funding in 2022, indicating an interest in this innovative technique for eliminating empty homes.
Construction Tech
The building and renovation of homes is one industry that’s always relevant. Technology makes many of the intricacies of construction easier, from matching suppliers with contractors to operating remote drones for surveying sites.
Reports indicate that construction tech is one area driving investment deals, so startups with great ideas on how to improve the industry or construction processes are ideally placed to make a big impact. Construction hit a ten-year high in value in 2019. Then, of course, that value plummeted during the pandemic. However, 2023 stats indicate that current growth is steady, and constructors are eager for tech-based tools to help them hit sustainability targets and increase productivity.
Final Word
Proptech brings the basic need for shelter together with the desire for simplicity and problem-solving. If you’ve got an idea you believe will rock the real estate industry, book a 15-minute introductory call and speak to us about marketing, brand messaging, and attracting investors.
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