Jones Lang LaSalle Incorporated (NYSE: JLL), (PCOR) – Proptech start-up funding to break real estate records in 2021

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The real estate industry has been one of the slowest to use technology, while other industries in the financial world have embraced it to provide more opportunities and help investors make smarter decisions.

According to the authors, the real estate agency is doing everything it can to catch up with the rest of the financial world. report released today To Jones Lang LaSalle Inc. (NYSE: JLL),

What the report shows: In the first half of 2021, funding for real estate startups (proptech) totaled more than $ 9.7 billion, which is the most active first half on record.

The market is also showing signs of maturation as funding begins to shift towards more established companies and industry leaders emerge as consolidation rises.

The number of real estate startups has grown rapidly over the past decade, from less than 2,000 to nearly 8,000, as companies strive to apply new technologies such as computing power, analytics and connectivity.

While real estate technology companies can be found in most countries around the world, the US still accounts for the bulk of company concept and fundraising. Other countries that have seen significant growth for proptech include Brazil, China, India, the United Kingdom and Germany.

Proptech companies by country

Proptech companies apply technology to many aspects of the real estate industry, including:

  • Acquisitions and disposals
  • Portfolio management
  • Design and construction
  • Finance and valuation
  • Leasing and marketing
  • Urban Governance and Planning
  • Eco-friendly buildings
  • Workplaces of the future

JLL on the rise of Proptech: “While technology adoption in real estate grew prior to the COVID-19 pandemic, it has become important for today’s leading players in real estate, buildings and premises,” he said. Ben Breslau, Chief Scientist at JLL.

“Technology is at the center of the most important trends shaping business and real estate. This includes hybrid work, health, safety and sustainable development initiatives, all of which are in high demand. This is why we expect funding in this sector to break all records. year.”

Problems, opportunities in Proptech:

Companies are using COVID-19 as an opportunity to experiment and accelerate technology adoption in the real estate industry, with the potential to make buildings greener, healthier and more people-centered.

A recent survey by JLL found out that the main priorities of the world’s leading tenants and investors is the creation of environmentally friendly places. The greatest focus is on decarbonization, which real estate investors believe can provide value and competitive advantage.

However, a number of challenges are slowing progress, including a fragmented technology landscape, a lack of industry standards, and the need for privacy and security are among the main challenges slowing down progress towards green and sustainable buildings.

Notable Proptech Companies: According to Crunchbase, these companies have already raised the most proptech funds in 2021.

  • Service Titan: $ 500 million raised
  • Loft: $ 425 Million Raised
  • Procore Technologies, Inc. (NYSE:PCOR): $ 635 million raised as a result of the IPO in May 2021.
  • SmartRent, Inc. (NYSE:SMRT) completed a business combination with Fifth Wall Acquisition Corp (NASDAQ:FWAA) become public.
  • Photo NASA on Unsplash

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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