What is Proptech?
Well, it is quite clear what Proptech stands for – Property Technology. We are living in the century of technological buzzwords. We have come across Artificial Intelligence (AI), Machine Learning, Fintech and many more, and Proptech is one of them. It is an acronym that describes any kind of technology used in the real estate sector. It could be a software, hardware, special materials, or a manufacturing process. According to a 2018 JLL report, Proptech can be described as: “the utilisation of technology as a solution to challenges in the real estate sector.” Basically, to offer services offered in real estate like buying, selling, marketing, renting, developing and managing property in an efficient and effective manner. The main idea behind Proptech is to make the buying and transaction process more transparent and flexible.
Why Proptech?
The traditional real estate market is highly inefficient, with the costs passed on to end-users. The costs of viewing and marketing properties, sourcing for leads etc. can be brought down with the help of Proptech by-
In short, agents get to close deals faster and clients save on a significant amount of commission.
The Proptech scene in South Asia
Lately, the Asia-Pacific region has been experiencing a lot of action in the global Proptech industry. According to a JLL report published in 2017, between 2013-17 a total of 179 startups in Asia accounted for 60% of global proptech investment, raising US$ 4.8 billion. India and China are bigger players in the proptech sector, but ASEAN countries are not far behind. JLL estimates show that there are 786 proptech startups in the ASEAN market.
Data analytics, Artificial Intelligence, the Internet of Things, Blockchain, Cryptocurrency etc. are changing the way we invest in and buy real estate. Various players in this sector recognise these challenges and opportunities.
In 2019, Southeast Asian Proptech startups raised $72.9 million USD, out of Asia Pacific’s total of US$ 625.9 million funding. This shows that Proptech is taking off in the region. Out of a total 38 deals brokered in 2019 in the South Asian countries, 11 were in Southeast Asia, placing it just behind China and ahead of India, who were previously the major competitors behind China.
As a result of urbanization and a young population, demand for housing and workspaces has risen dramatically in Southeast Asia. Currently, there is limited credit access and financing in the emerging markets across ASEAN. Therefore, Proptech will need time to dominate the real estate market in Southeast Asia. It will also have to rely on other startup ecosystems to expand across the region. The rapidly growing Fintech sector will act as an engine for growth.
Emerging Proptech Markets in South East Asia
Thus, we can say that an enormous transformation in the real estate sector is expected with the development of various disruptive technologies all over the world. It is only a matter of time before property scene in this region catches up with other developed sectors.
Singapore has always had a progressive healthcare system with prioritizing innovative solutions to the existing…
A Ponzi scheme is a fraudulent investment scheme that aims to give its investors high…
According to the Global Prop tech Survey, 2019 published by KPMG one of the key…
In April 2016, the world witnessed one of the biggest information leaks in history, consisting…
Silent Eight a global technology company that helps combat money laundering and terrorism financing using…
Indian startup Gully Network Retail Pvt Ltd, a retail-tech startup focused on providing services to…
Leave a Comment