The second half of 2020 was a bumper year for confidence in the proptech sector, despite– or perhaps, because of – the impact of Covid-19, according to MetaProp’s latest Global Proptech Confidence Index.
The index registers a 9.2 out of 10 score for investor confidence, up from a high of 8.8 in mid-2019.
The coronavirus pandemic accelerated the adoption of tech, and with that increased use has come increased investor interest (see this week’s EG for just how much is being raised through blank cheque companies in the US to target real estate tech).
According to MetaProp’s report, some 94% of investors believe that Covid will further accelerate the adoption of tech in the real estate sector. Some 76% of those investors expect to see more acquisition in the space over the next 12 months and 59% said they expect to make more acquisitions themselves, up from 33% in MetaProp’s last survey.
Confidence is also high among the start-up community, with a start-up confidence index score of 7.7 out of 10 – the highest the survey has ever recorded.
Some 39% of start-ups said they felt it would be easier to obtain venture capital funding over the next 12 months compared with the previous 12 months, a healthy increase on the middle of 2020 when just 12% of founders said the same.
“The second half of 2020 proved to be incredibly positive for the proptech ecosystem,” said Aaron Block, co-founder and managing partner of MetaProp. “As we predicted earlier last year, the proptech sector continued its rapid growth and maturation, with a flurry of record-setting activity and industry sentiment soaring to new heights. We are excited as we anticipate this trend will continue in 2021, with Covid-19 vaccines being rolled out faster than expected and a more stable political climate.”
To read the report in full, click here.
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