Proptech Witnessed a Watershed Year in 2019, Will it Maintain?

NEW YORK CITY – The commercial real estate property technology sector witnessed big gains in 2019, having a watershed year with the most invested capital on record. And 2020 is expected to keep up that momentum as investors focus on valuations and revenue as oppose to scalability and growth, Ashkán Zandieh, chief intelligence officer at CREtech, a global real estate tech-focused media, event and advisory platform, tells GlobeSt.com. “2019 was a breakthrough year for the proptech industry,” he said.

Capital invested in proptech companies for the year totaled $24.9 billion, a 157% increase from 2018, according to CREtech data. And of the venture capital investments made, an estimated 57% were made during the first half of 2019.

Although capital is flowing into the proptech sector, the sense is technology investors and venture capitalists will deploy pragmatic strategies in 2020, according to Zandieh.