Property technology start-ups in Asia Pacific outpace counterparts in Europe and US

PROPERTY technology, or proptech, start-ups in Asia Pacific are outpacing their counterparts in Europe and the US, international real estate consultancy JLL said in a research released today.

Since 2013, 179 proptech start-ups in the region have raised around US$4.8 billion in funding, representing more than 60 percent of proptech investment worldwide, according to the latest research, which analyzed the state of proptech and its growth potential in 13 markets across Asia Pacific.

Proptech refers to the application of technology to solve challenges in the real estate sector.

"Technology and real estate are converging in exciting ways and we're already seeing the potential of data analytics, artificial intelligence, the Internet of Things, virtual reality and blockchain, to transform how we invest in and occupy real estate in the future," said Anthony Couse, chief executive officer of JLL Asia Pacific.

China and India emerged as the top two markets for proptech start-ups in the region, based on funding value and total number of deals. Start-ups in China raised the most funding of US$3.02 billion, or over 60 percent of Asia Pacific's total, from 34 deals. India has the highest number of proptech start-ups in the region at 77 deals which raised US$928 million in total.

The research also forecast funding for proptech in the region of US$4.5 billion a year by 2020, mainly boosted by the region's young population, rapid urbanization and "mobile first" mindset.