According to the Global Prop tech Survey, 2019 published by KPMG one of the key insights from the survey was Real Estate companies are increasingly embracing digital transformations. Around 58% of respondents have a digital strategy in place which is higher by 6% compared to 2018. 95% of companies have someone responsible for leading digital transformation and innovation. With rapid technological innovations and potential consumer base, the proptech scenario of china is witnessing huge growth.
Key Growth Factors in China’s Proptech scenario
Proptech provides good standard of living to its customers through new age technological innovations.
There are four dimensions to proptech industry:
- Operational Excellence
- Digital Drive
- Human Experience
- Safety and Health
The four dimensions form the pillar of Real Estate business in China, especially the Health and safety aspect that has accelerated after the COVID-19 scenario. A good number of 47% of companies plan to increase their Proptech budget by 10-30% in the next two years, says a report by JLL.
The key Proptech players in China are Equipment Manufacturers, Software Developers, Internet Companies, and Startups. The integration of forefront technologies with the traditional industries, forms a suitable ecosystem for Prop Tech in China.
Real estate developers are understanding the need to invest in new-age technologies and making their properties efficient and Accessible. There is a large base of people whose day to day lives are surrounded by technological innovations and the enjoy the accessibility it provides and a larger consumer base is wanting the same technological intervention in their houses.
The characteristics of both the real estate developers and consumers is providing a good foundation for Prop tech to thrive in the Chinese market.
Proptech in China is unique for two main reasons:
- China has a relatively separate digital ecosystem
- The government priorities and digital culture influence the commercialization of Proptech in China.
In the coming times the demand for new technologies such as Big Data, Cloud Computing, AI, IoT, VR/AR, etc. are going to significantly increase. Moreover, China is one of the first countries to roll out 5G plans giving another set of a boost to technological endeavors. China has been the leading destination for funding across APAC since 2017 and kept the momentum in 2019. This indicates a steady growth in the proptech space of China.
Some of the top proptech startups who were featured in the Top Proptech startups of 2019 by HexGn are Ziroom, Xiaozhu, Mofang Gongyu, FangDD, Naked Hub, Uoko, Iwjw, Qinke, Danke Apartment, and 51VR.