Global investor confidence in real estate technology has hit an all-time high as 70% of investors expect to invest more in tech firms over the next 12 months.
The results of Metaprop’s Global PropTech Confidence Index for the year ending 2021 reveals that confidence stands at 9.3 out of 10, based on a survey of tech investors from across the globe on future market expectations.
An “investor friendly” fundraising environment after successive years of more founder-friendly conditions have been attributed to the high confidence score. This climate has emerged “due to downward pressure on public company valuations trickling into the private markets”, according to the report.
The investors surveyed said that ESG remained a key investment area with smart buildings, finance and investment and space management being named as areas of tech innovation they are most interested in.
With over 70% of investors expecting to invest over the next 12 months, 30% revealed that investment would be in Series B-to-D+ investment rounds.
Michelle Killoran, principal at OMERS Ventures, said: “In 2022, I expect to see further maturing of the ecosystem, which means more exits and consolidation next year. This then leads to more experienced people in real estate technology looking to build something new.”
Aaron Block, co-founder and managing partner at Metaprop, said: “Beginning in late 4Q21, the public equity market entered a correction that has continued into 1Q22. Inflation, the promise of rising interest rates, geopolitical instability and other global risk factors have affected the equity markets across the board. The technology world has not been spared.
“Nevertheless, we’re pleased to see proptech investors confident in our space. Notable survey responses from this index indicate that in the next 12 months, 71% of investors expect to invest in more proptech companies, 96% of investors expect Covid-19 to accelerate the adoption of proptech in the real estate industry, and 85% of investors shared that the proptech companies in their portfolio are performing above or meeting expectations in terms of customer growth – an all-time high.”
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