PropTech

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PropTech - syn. Proptech , Property Technology , RE Tech , Real Estate Technology - describes the digital transformation of the real estate industry as well as the individual innovative companies (often startups ) in this branch of industry.

PropTech companies (PropTechs) optimize or invent real estate products and services by using the latest information and communication technologies and making or introducing business processes or business models more efficiently. They are aimed at both companies ( B2B ) and end users ( B2C ).

The term PropTech is the short form of the English word combination Property Technology and can be translated into German with real estate technology. In the Anglo-Saxon region, the short term ReTech, short for Real Estate Technology, is usually used as an alternative. Similar terms in the context of increasing digitization and innovation processes can be found in the financial sector ( FinTech ), the legal sector ( LegalTech ) or the medical sector ( MedTech ).

The term PropTech has been used to describe the digital transformation of the real estate industry since the mid-2010s. PropTechs are those companies and companies that develop and implement technology-based solutions for new and existing problems in the real estate and construction industry. They offer new products and initiate services for business processes in the entire real estate industry. By means of software and / or hardware solutions, processes and business models can primarily be optimized and thus made (cost) more efficient. PropTech companies and their services and products cover the entire life cycle from the financing and implementation of real estate projects to the later operation of the converted space and utilization through rental or resale. The traditional demarcations between planning and financing agencies, property managers and brokers are being called into question.

Digital solutions in the development, planning and construction of buildings are summarized under the additional term ConTech , which is short for Construction Technology.

The digitized processes in the real estate industry include the areas of management, use, sale, marketing and leasing. PropTech solutions or products can be aimed at companies ( B2B - Business-to-Business ) as well as at end consumers ( B2C - Business-to-Consumer ). In recent years, more and more PropTech companies have been founded - be it as a spin-off of a branch of business from established companies or mostly in the form of young start-ups. This has led to a growing interest in venture capital in this type of business idea. You participate in the development (and ultimately also in the success or failure) of PropTechs by entering through financing rounds and receiving company shares in return. The so-called PropTech Funding last (as of September 2019) reached a volume of 1.24 billion US dollars within 52 financing events.

In the meantime (as of January 2019) there are over 6,000 companies worldwide that are associated with the term PropTech.

As a result, the need arose in many countries to network the various companies with one another and to maintain an exchange. In the German-speaking countries these networks or associations can be found under the names German PropTech Initiative (Germany), Austrian PropTech Initiative (Austria) and SwissPropTech (Switzerland). The same applies to other countries around the world, such as the USA, Great Britain, Australia, South Africa, Russia and at EU level. These organize events, competitions and opportunities to exchange knowledge and experience or accompany the PropTech companies to the major trade fairs in the real estate industry, for example to MIPIM in Cannes / France, MIPIM PropTech in Paris / France, Future PropTech in London / Great Britain, to EXPO REAL in Munich / Germany or at IMMO in Zurich / Switzerland.

Individual evidence

  1. ↑ ZIA - Germany: PropTech | ZIA - Central Real Estate Committee . In: ZIA Germany . April 18, 2017 ( zia-deutschland.de [accessed March 29, 2018]).
  2. ↑ Study_Digitalisierung_27.09.16.pdf. In: zia-deutschland.de. Retrieved March 29, 2018 .
  3. ↑ Angelica Krystle Donati: The 5 Basic Things You Need To Know About ConTech. Retrieved October 3, 2019 .
  4. ↑ Unissu. Retrieved October 3, 2019 .
  5. ↑ Unissu. Retrieved October 3, 2019 .
  6. ↑ German PropTech initiative. Retrieved October 3, 2019 .
  7. ↑ Home. Retrieved October 3, 2019 .
  8. ↑ SwissPropTech - Innovation in Real Estate. Retrieved October 3, 2019 .