Spain ranks as the second country in the world with the highest annual investment in Proptech

824 million euros in 2020-2021

The Spanish industry concentrated the second largest figure in attracting investment above the United Kingdom (€769M), India (€742M) and Brazil (€444M).

---

 

The collective of Real Estate Agents (API) en Catalunya and Deloitte Spain have presented the figures of the Spanish Proptech market and they have analyzed the structural changes in the real estate industry and its profession due to the technological revolution, as well as the macroeconomic and real estate scenario that the country is currently experiencing. In this context, both organizations have presented a study on this segment in Spain and Europe, carried out by Deloitte, and the latest edition of the Proptech Map, prepared by the APIs. 

 

And this segment has grown a lot and exponentially in recent years. Proptech (acronym for property technology) refers to any company that uses technology to improve or reinvent any service within the real estate. The services and activities that improve are, among others, the purchase, sale and rental of assets, construction processes, financing, design, maintenance or management of commercial or residential assets.

 

Proptech had its big boom starting in 2018 and is expected to continue growing in 2022. The ecosystem in Spain has been gaining strength with the growing digitalization of the sector and consumer demands. Currently, Spain is the second country that attracts the most investment in Proptech in the world, reaching 824 million euros in the 2020-21 academic year. The Spanish industry concentrated the second largest figure in attracting investment above United Kingdom (€769M), India (€742M) and Brazil (€444M), and only behind United States, which with 5.889 million euros leads the ranking with an investment volume well above the rest.

 

There are already more than 4.100 Proptech companies in Europe. The European country with the most companies is the United Kingdom, with 709 registered companies, followed by Germany (609) and Spain (536).

 

There are currently more than 4.100 Proptech companies in Europe. The European country with the most companies is United Kingdom, with 709 registered companies, followed by Germany, (609) and Spain (536). Other countries like France (387) Bulgaria (200) Finland (191) Sweden (189) Belgium (160) o Italy (152) also have booming Proptech industries. In Central Europe and Eastern Europe More startups focused on the office sector stand out (65% of the total), specifically in Architecture and Project Management services. On the other hand, in southern Europe the focus is on the residential sector and the technologies that can be applied to it (Big Data, Artificial Intelligence, machine learning or virtual reality and augmented reality).

 

Some of the trends that are already being seen and are expected to continue growing are the use of new technologies to achieve energy optimization of buildings, the improvement of the user experience (omnichannel implementation, integrated apps, virtual visualization of assets …) and the process of selling assets in a short period of time.

 

According to the report, the most used technologies in all areas within the real estate sector are the following:

 

Big Data: It allows data to be available in real time, which makes the sector a little more democratic, allowing all parties to make decisions based on updated and verified information.

Internet Of Things (IoT): Smart buildings rely on IoT technology, creating a layer of connectivity to building devices.

Peer to peer: It allows a direct relationship between users and facilitates economic options in all types of operations in the sector.

Blockchain: It reduces the intervention of intermediaries in operations, making them safer, cheaper, faster and more efficient.

Virtual and augmented reality: They offer a personalized experience when showing properties, facilitating the client's decision-making and saving time for both buyers and sellers.