European Proptech Guide

AI, Big Data and IoT are the main technologies of the Proptech ecosystem to transform the Real Estate sector.



The Real Estate sector is in full technological transition, which has led to the emergence of solutions capable of attracting and bringing technology and innovation to this sector, through startups that are offering the opportunity to innovate and digitise in search of efficiency and new business models. In this context, CBRE, the leading international Real Estate consultancy and services company, has produced the European Proptech Guide, which analyses the current sector situation through data from over 800 PropTechs in its ecosystem.


The report shows that AI & Machine Learning, Big Data and IoT are the most widely used technologies. Sensorisation and IoT offer a wide range of possibilities thanks to the generation of millions of data in any given asset, which can be exploited through technologies such as AI or Machine Learning, something that was much more complicated a few years ago. In addition, the pandemic has accelerated other trends such as Virtual and Augmented Reality, which have become very important throughout lockdown allowing remote asset insights, and Blockchain or BIM, more sophisticated and recent technologies.


Carlos Casado, COO of CBRE Spain, says that, although this sector has seen the number of startups multiply in recent years, there is still a long way to go in the field of digitisation: “Especially in tertiary Real Estate, which includes non-housing assets such as offices, retail or logistics, among others. We have to keep in mind that Real Estate is one of the most important sectors worldwide, which has not yet had a digital adoption like other sectors have had”.



Proptech ecosystem booming



This report, based on more than 800 PropTechs across Europe, reflects that 80% of these startups are less than 5 years old, confirming the strong growth of the sector in recent years. PropTechs are mainly attracted to the residential and office sectors, with 70% and 67% respectively providing solutions for these types of assets, although it should be noted that 24% of the projects are cross-cutting across all Real Estate products.


PropTech in the residential sector is clearly more focused on the end consumer, with 23% of them having a B2C model, compared to the rest of the sectors where this percentage is between 5% (in the case of hotels) and 13% (in the case of retail).



The geographical conditioning factors



The participants in this report have been divided into five geographical areas: Nordic countries, British Isles, Central Europe, Eastern Europe and Southern Europe.

The British Isles is the region at the forefront of European Real Estate entrepreneurship, due to a long-established tradition in this sector, as well as a high investment capacity. Central and Eastern Europe, on the other hand, are more focused on the development of disruptive technologies with a focus on Offices, especially in Architecture and Project Management services.

Southern Europe, where Spain, Portugal and Italy are located, has younger startups focused on residential and surrounding technologies. In areas such as Great Britain and the Nordic countries, between 40 and 50% of startups base their financing strategy on rounds of financing by Venture Capital funds. In the South, however, this ratio is reduced to 22%.

“In Spain we have a very active Proptech ecosystem, the 4th most important at a European level, behind the United Kingdom, which continues to be the leader, France and Germany and ahead of leading regions in innovation such as Nordics or Benelux”, says Carlos Casado.



The relationship between startups and large companies



The main conclusion that can be drawn from the relationship between the two players is that 8 out of 10 PropTechs have some kind of relationship with a large company, ranging from a commercial relationship (44%) to involvement in their business development and participation of the corporation in the startup’s capital (16%). This relationship, according to the startups, can be improved by adopting a greater speed of work on the corporation’s side (72%) and that these develop greater business opportunities together with the startups (42%).

From the analysed Proptechs, 77% work with Real Estate companies. In second and third place respectively, these alliances are established with companies in the technology sector and software providers (36%) and companies focused on energy and sustainability (21%).

As for the barriers that PropTechs have been encountering for their growth, these include the absence of acceleration programmes (76%), the lack of access to new markets or customers through strategic agreements with third parties (40%) or access to seed capital (34%).



You can download the complete guide via the following link:


CBRE PropTech Team


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