3 Factors Impacting Investments in Proptech

Proptech has emerged as a lucrative real estate investment channel with a promising prospect for both the investors and customers.

FREMONT, CA: Real estate investment has always been a grey area. While critics might vote for an impending housing crash, here are several trends that signal otherwise. Amidst a seemingly reasonable economy and the emergence of ambitious middle-class, real estate valuations might reach new highs. Further, technological advancements are also shaping real estate investments as investors are eyeing emerging proptech offerings. However, there are certain economic and demographic factors that will determine future proptech investments. The key factors that are likely to determine the fate of real estate investments have been described below.

Globalization of Proptech Investments

Proptech market is gradually growing beyond borders. Investors are eyeing to improve their returns on investments (ROI) via new proptech offerings. Further, the digitalization of real estate is encouraging investors across the world to place their bets on lucrative proptech assets and products.

The emergence of Green Tech Investments

Real estate firms, as well as investors, have realized that proptech and sustainability will be the two sides of a coin in the future. As a result, firms are launching funds to accelerate sustainability efforts in the real estate arena. The drive for the companies to touch net-zero emissions by 2050 is further propelling real estate tech investment around green solutions. 

Impactful Proptech Solutions

The proliferation of disruptive technology such as blockchain and AR, VR solutions is further influencing proptech investments. Tokenization is further drawing investors irrespective of their financial capabilities. For instance, tokenization allows the customers to invest in properties even when they can’t afford it. Thus, in this instance, tokenization enables the customers to buy a token or share of the property. Disruptive solutions will draw in investments as it has the potential to include a wide range of audience base.

Technological advancements, along with globalization, will influence future investments into proptech.

Check out: Top PropTech Solution Companies

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