Spain, a Proptech investment powerhouse
20 of May
«The real boom has been in 2021, concentrating 25% of the investments of the last decade».
Spain is a powerhouse in proptech (property technology) and, according to Juan Velayos of JV20 Investment & Advisory, it is the second most important country in terms of investment in startups in the sector, behind only the United States, with Barcelona and Madrid as business hubs. This is indicated by the annual barometer of ESCP Business School, which places investment in Spanish startups in the real estate sector at 856 million euros between the second half of 2020 and the first half of 2021.
Two key points for progress: talent and money. Investors should also be focused on the synergies between proptech and construtech. «The key is to have the technology to gain productivity and investors have seen a vein in construction, in a context marked by the energy crisis and the goal of zero emissions on the horizon». For example, «traditional» construction companies must jump on the innovation bandwagon «or they will be left out of the market».
How startups gain dimension
The number of startups increased to 302 units, with technology companies dedicated to real estate mostly focused on real estate. Proptech companies are increasing their presence in the Spanish real estate sector. The number of ‘startups’ of this type has grown by 69% in the last year, going from 211 companies in April 2018 to 302.
Three out of every four ‘proptechs’ are linked to the real estate sector, in collaborations involving three or more agents in this field. Although this is the main area of development, there are other options such as commercial rentals, with international references such as WeWork.
The industry’s perspective on proptech considers collaborations with these startups to be the most strategic initiative related to open innovation. Regarding the effects that this update will have on the organization itself, almost seven out of ten expect it to bring significant changes to the business; for 23%, these will be radical.