PropTech: The moment of truth

In recent years, the PropTech sector has experienced exponential growth, not only in investment levels, with growth of over 550% since 2014, but also in the rise of new solutions and technologies. However, as always when we talk about innovation, it is important to differentiate those solutions that, despite being tremendously innovative and technologically very disruptive, do not have a defined use case nor add value to the industry.

 

This process of natural selection, present in all markets, has been escalated by the appearance of Covid-19 which, together with great uncertainty in investment markets, will mark a turning point within the industry; PropTech.

 

Those solutions that do not provide a valued, defined and profitable use will tend to disappear while those that do will have the ability to take off within one of the industries with the greatest technological potential. This way, we foresee that those solutions that take the chance on improving the user experience, sustainability and connectivity in assets or advanced data exploitation, among others, will play a relevant role.

 

Column at “El Referente” by Adrià Bernal Strategy & Corporate Development Manager at CBRE Spain

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