3 Proptech Forecasts for 2023 and Beyond
According to the Center for Real Estate Technology and Innovation, venture capital-backed proptech companies raised $19.8 billion in 2022, which is 38% down from the $32 billion raised in 2021.
The real estate industry is constantly evolving, and the adoption of proptech is playing a significant role in driving this change.
In this article, let’s take a look at some of the biggest proptech trends that are expected to shape the industry in 2023 and beyond.
- Mass Proptech adoption There will be a widespread use of property technology within the real estate industry. This includes the use of innovative technologies to automate various processes, such as property management, marketing and sales, and tenant screening.There are several factors driving the mass adoption of proptech within the real estate industry, including the increasing use of technology in everyday life, the need for more efficient and cost-effective processes, and the growing demand for user-friendly experiences from customers.Proptech adoption is expected to continue growing in the coming years, as more real estate companies recognise the benefits of using technology to improve their operations and meet the needs of their customers. This will likely lead to the development of new proptech solutions and the adoption of new technologies within the industry.Consolidation: After living through a super-cycle of proptech adoption, now we have more mature / publicly traded proptech businesses.Challenging capital markets will lead to consolidation, whether it’s larger firms acquiring early-stage businesses or mergers of equals.Brendan Wallace, Managing Partner Fifth Wall.
- Consolidation
In 2023 , we will see the continuation of Consolidation in the proptech industry. We will see more proptech companies merging or acquiring other proptech companies in order to expand their operations and offerings. This trend is driven by the increasing competition within the proptech industry, as well as the desire of proptech companies to build more comprehensive and integrated solutions for real estate companies.
- One example of consolidation in proptech is the acquisition of smaller proptech companies by larger, more established players in the industry. This allows the larger companies to expand their product and service offerings, as well as increase their market share.
- Another example is the merger of proptech companies that offer complementary products and services. For example, a proptech company that specializes in property management software might merge with a proptech company that provides marketing and sales solutions for real estate companies. This allows the combined company to offer a more comprehensive set of solutions to their customers.
Overall, it is expected that consolidation in proptech will continue in the coming years, as proptech companies look for ways to differentiate themselves and offer more comprehensive solutions to real estate companies.
- Proptech-as-a-service
Proptech as a service refers to the trend of proptech companies offering their products and services on a subscription-based model, rather than a one-time purchase. This allows real estate companies to access the latest technology and tools on a flexible, pay-as-you-go basis, rather than having to make a large upfront investment.
Examples of proptech as a service include software for property management, marketing and sales, and tenant screening. These services are often provided through a cloud-based platform, allowing real estate companies to easily access and use them from any location.
The proptech-as-a-service model offers several benefits for both proptech companies and real estate companies. Proptech companies can generate recurring revenue and build long-term customer relationships, while real estate companies can access the latest technology without making a large upfront investment. This model is expected to continue growing in popularity in the coming years, as more proptech companies adopt it and real estate companies look for more flexible and cost-effective solutions.
As proptech becomes more widespread and accepted within the industry, it is likely that we will see even more innovation and disruption in the real estate industry in the coming years.
Source: bolade.substack
