There is no denying that 2021 has been a historic year for the real estate industry, especially real estate technology. Before although the industry has made great strides, the current situation offers more opportunities than ever before. As you think about where you can focus your business development efforts and investment thesis by 2022, keep these two real estate technologies in mind.
The world of real estate tech will continue to grow.
To begin with, it is important to note that the whole range of housing technology extends beyond the boundaries of the prop-tech sector. Although CRTech has been around for a long time this year, it is likely that even more innovative technologies and investment markets will begin to make a significant impact on this space. In particular, you will probably start to see more sectors develop and establish an industry the way you know it - for example, contech, or construction technology.
Keep a close eye out for the items listed in especially.
While 2022 may serve as the basis for these new real estate sectors, each will contribute to the current development in terms of what it means to be a real estate company. As the world enters its third year of the epidemic, the industry sees a continuous transformation of retail as a hand-to-digital process, creating more opportunities.
Industrial M&A agreements will remain high.
Another side effect of digital integration of the real estate process is that integration and acquisition (M&A) in the industry will likely continue to accelerate. To get a sense of where we are headed, it is important that we look at where they ended up in 2021. Simply put, M&A is growing worldwide. Barons recently reported that $ 5.6 billion in contracts were made last year across all industries, breaking the previous record of $ 4.55 trillion in 2007.
In the proptech sector alone, there were 40 M&A contracts by the end of the third quarter, according to a report from GCA Advisors, up from 18 last year, setting the pace for 2021 to determine job recording levels. Significantly, 90% of all jobs by 2021 were strategic integration.
In part, those M&A figures were driven by the boom of the Specification Company (SPAC) that took place in early 2021, marked by a merger that had already been announced between SmartRent and Fifth Wall Acquisition Corp.
Despite the slowdown during the development, SPAC Insider reports that 613 SPAC agreements were entered into last year, most of which involved housing technology companies, representing a significant increase from 248 SPAC deals by 2020 and 59 in -2019. next year, SPACs will likely continue to be a popular way for proptech companies to go public while skipping the usual IPO process.
On the investment side, venture capital (VC) firms have allocated record numbers to proptech companies over the past year. The 2021 Real Estate Tech Venture Funding (download required) shared that VC funding was equivalent to $ 32 billion last year. That figure represents a 28% increase in funding from 2020 and a 3.23% increase from the previous $ 31.6 billion funding record, set in 2019.
Specifically, the CRETI report showed that the majority of that investment went into housing, which took 49% of the investment dollars, followed by 20% for most families.
In view of those figures, it is only natural to speculate that M&A deals will continue to grow in 2022. As in the past year, it is safe to assume that most of these deals will involve private equity (PE) and VC companies looking to gain exposure to their portfolios. In this field, existing real estate technology companies and many real estate players are hoping to improve their technology offerings.
As one of the last markets to embrace digital production, the real estate industry is doing its best to follow the most popular technology trends. Additional startups may receive support if they use AI and ML, which is one of the hottest styles in PropTech. The industry is already enjoying its best times thanks to investments, new models, and ever-emerging real estate platforms.
Housing Market Status and Business Forecasts
Investment in the real estate industry the real estate market will stand out and be global. Real Estate 2020 has revealed that institutional growth has grown by more than 55 percent, from $ 29 trillion in 2012 to $ 45.3 trillion by 2020. It could grow to $ 69 trillion by 2030. Predictions predict a happy future in the market, and this fact will not be inspiring.
By 2022 investors will lead to a much larger list of opportunities. Second, the construction investment community will provide more global opportunities for people. It is especially important for those who work financially with short maturity and various return profiles.
By 2022, the global housing and housing market has grown to $ 2,774.45 billion with a combined annual growth rate (CAGR) of 3.2%.
Well, by 2020, thanks to the Covid era, market growth and development have dropped by more than 2-3 percent. However, from 2021, active employment starts at about 8% per annum Asia-Pacific is a major region in the global real estate market, accounting for 40% of the market by 2020. Western Europe was the sec area, with 24 percent of the total. The same trend continues in 2022.
New Features to Launch the Tech Estate
Beginners using AI and Big Data are likely to receive more support. They will be the ones doing the different parts of the real estate industry. Visual tourism will be much needed in the digital world. They will be integrated into both rental and purchase platforms.
New Business Models
buyer is an example of a non-traditional business model in the real estate industry. It uses modern technology to make selling and buying property easier. You can do this using the default calibration model. Ever since eBuyer first appeared, many customers have decided who to turn to real estate agents or buyers. We are waiting for that new forum with automatic purchase and rental.
Competing in the Housing Market
The real estate market will be even more competitive. There will be low mortgage rates and enough real estate to be sold. The bidding war will escalate and further 6% price growth over the first six months. Later, demand and supply will stabilize and cool down to 3%.
An important point.
As the epidemic continues to change lives as everyone knows, the need for housing technology remains greater than ever. As a result, this sector of the industry will definitely see growth and expansion in the coming year and beyond.