Proptech, a safe sector in a landscape of economic uncertainty
Real estate is not as volatile as the stock market. Although we are in a time of uncertainty in which inflation has caused many technology…
Real estate is not as volatile as the stock market. Although we are in a time of uncertainty in which inflation has caused many technology companies to reduce their workforce considerably, there is still a lot of capital and investment interest in this sector.
#1 We are optimistic
The Proptech sector has only just taken its first steps, making life easier for everyone in homes, buildings and cities. Therefore, there are still many problems to be solved. There are many aspects such as the sustainability of processes, the digitalisation of buildings and cities or the security of homes, which need more and better technology. That is why we have to be optimistic.
Despite the fact that we are in a year in which many economic indicators are not looking good, venture capitalists know that now is the time to invest in Proptech, as they are technological solutions to real problems.
For their part, Proptechs have to keep working hard on their value proposition and use the data of the sector to optimise their markets, focus on a real problem and seize the moment.
#2 Proptech remains a safe bet to invest in
Real estate continues to be one of the safest long-term assets to invest in because, as I mentioned at the beginning of this article, it is much less volatile than the stock market and has many opportunities for technological innovation. Therefore, investing in Proptech companies is not only good business for VCs, but also for all industry players.
We are living in an era where technology allows us to be more efficient, more profitable and more sustainable. These companies have at hand all the necessary tools to better understand people and, in this way, be able to offer users the best service.
New technologies have changed the world, from the way we communicate to developing jobs and services that until not long ago seemed impossible, and the real estate sector could not be less. Proptech is here to stay and will continue to evolve into new ways of accessing Real Estate.