Venture capital firms are speeding up fundraising in property technology in the Asia-Pacific region, as rising demand for climate-friendly upgrades to buildings fuels the fast-growing segment across the globe.
The global proptech market is expected to grow at a compound annual rate of 16.8 per cent from 2022 to 2032 to US$86.5 billion, according to consultancy and research firm Future Market Insights. As such, investments from venture capital funds are providing much needed capital for the start-ups that are expected to innovate the real estate industry and facilitate global efforts in reining in carbon emission, the firm said.
Proptech, which optimises how people research, rent, buy, sell and manage properties, can involve anything from artificial intelligence, Internet of Things and data analytics to robotics and financial modelling software, such as apps for adjusting office temperatures or cleaning robots that climb building facades.
JLL Spark, the corporate venture arm of commercial real estate service provider JLL, has also taken note of the trend, according to its managing partner Chris Pu.
It is setting up a new renminbi fund this year, after investing more than US$340 million across more than 40 proptech firms. The venture will identify and invest in China-based companies that serve real estate investors and occupants through innovative solutions in construction technology, sustainability, financial technology, smart buildings, industrial technology and the future of work.
