A report has suggested that there could be significant rewards on the horizon for forward-thinking business that see the potential in proptech.
FTI Consulting unveiled the findings of a survey at FUTURE: Proptech conference in London. An overwhelming majority of 95% of those surveyed said they felt positive about the outlook of the property technology sector going into the next 12 months, while 64% went even further and predicted boom times ahead. Other findings include:
- 82% of respondents agreeing the proptech will be “fully embedded within the UK real estate industry within the next five years”
- 54% expect a significant increase in investment in the industry over the next year
- 49% predict proptech in the residential market to “significantly increase”.
In the report, FTI Consulting’s Managing Director Giles Barrie said:
“Whilst we have seen a number of proptech players gain widespread credibility and sizable investment, to date, it has not been possible to provide an overview of the size of the sector, the potential growth opportunity, the sentiment amongst those driving it and the key challenges they expect to see ahead.”
“Not only do our findings demonstrate that the hype around proptech is not overblown, they have also provided an opportunity to explore some other key questions that have been heavily debated in the media and beyond, such as where we are in the cycle, how and where proptech integration is happening and what level of appetite exists really for change.”
Alongside the many encouraging findings, the survey also found that the industry is facing some fairly sizeable hurdles. These include battling a negative perception of proptech (47% of respondents named this as an obstacle) and property firms lacking the internal resources to support integration (75%). A further 89% worry that property companies and Estate Agents struggle to understand what proptech actually is.
New proptech fund established
In other positive news coming out of the FUTURE: Proptech event, a brand new $212 million fund for proptech in real estate was announced. Fifth Wall Ventures has tapped into the funding power of real estate giants in the U.S. to setup a huge new fund to invest in promising startups working in the proptech sector.
While a similar pot of funding may not yet have reached UK shores, it’s an enormously positive sign for the industry – demonstrating that major players in the world of property are recognising the importance of proptech for shaping the future of the sector.