{"id":14506,"date":"2021-02-15T09:00:16","date_gmt":"2021-02-15T08:00:16","guid":{"rendered":"https:\/\/my-life.lu\/?p=14506"},"modified":"2021-01-21T13:04:24","modified_gmt":"2021-01-21T12:04:24","slug":"why-theres-no-getting-away-from-proptech-12014","status":"publish","type":"post","link":"https:\/\/my-life.lu\/en\/why-theres-no-getting-away-from-proptech-12014\/","title":{"rendered":"Why there\u2019s no getting away from PropTech"},"content":{"rendered":"
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Having previously introduced the concept of PropTech<\/strong><\/span><\/a>, it felt necessary to delve further to understand how much weight this sector currently has and how it is developing in Luxembourg. PropTech is undeniably gaining more and more ground and we don\u2019t see it stopping any time soon.<\/p>\n

PropTech is the umbrella term for innovative tech companies that are working to transform products, services and business models in the real estate sector. PropTech start-ups are creating a buzz among investors to say the least; between 2012 and 2016, real estate start-ups raised around USD\u00a06.4\u00a0billion in 817 deals, according to CB\u00a0Insights. As shown in the graph below, the amount of capital injected has significantly increased over the same period.<\/p>\n

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More recently, these investment volumes have continued to grow, reaching USD\u00a03.95\u00a0billion in 2018, versus USD\u00a03.4\u00a0billion a year earlier (source: CB\u00a0Insights). The number of companies is also shooting up: the platform Unissu counted around 6,000 PropTech start-ups in 2020.<\/p>\n

More significantly, the traditional property market is confident of the potential PropTechs have to offer, even though it is frequently hesitant to take the leap. For example, the 2018 KPMG Global PropTech Survey<\/strong><\/span><\/a> indicated a paradoxical mismatch between the fact that most traditional players view PropTechs as a potential source of value (90%) and the finding that only a minority (30%) currently invests or plans to invest in it in the near future.<\/p>\n

Real estate is the biggest asset class internationally.<\/p><\/blockquote>\n

There is one key point to bear in mind: real estate is the biggest asset class<\/strong><\/span><\/a> internationally. This market is valued at USD 230 trillion and the residential property market, which is valued at USD 168 trillion, accounts for the lion\u2019s share. These astronomical figures show that PropTech is part of an enormous market and that it has the potential to affect billions of people.<\/p>\n

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What is it like here? Despite its diminutive size, Luxembourg has a highly prosperous real estate market, which has seen dramatic growth in recent years. As the market is booming, it is only natural that PropTech companies would take a keen interest in it.<\/p>\n

As well as bringing together these companies, promoters and property developers, PropTech may also be of interest to the entire ecosystem more broadly.<\/p><\/blockquote>\n

LuxPropTech and PropTechs in Luxembourg<\/h2>\n

There are a number of PropTech start-ups in the Grand Duchy. To ensure the country is able to access the best that PropTech has to offer, as well as bringing together these companies, promoters and property developers, LuxPropTech<\/strong><\/span><\/a> may also be of interest to the entire ecosystem more broadly (insurers, the Big Four and investors, etc.). The association\u2019s president is Laurent Rouach, who is also one of its co-founders.<\/p>\n

Some of the financial centre\u2019s heavyweights, such as BIL, have decided to demonstrate their commitment by signing up to an ambitious partnership and sponsoring the organisation, which has several objectives. This is a clear indication of the buzz around PropTechs in Luxembourg.<\/p>\n