Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Is proptech now ripe for M&A?

By Grace Ormsby
16 April 2021 | 1 minute read
aerial shot residential properties reb

Real estate professionals can expect more mergers and acquisitions (M&A) to take place in the proptech space over the coming year, a report has forecast.

A survey of proptech investors in MetaProp’s Global Proptech Confidence Index showed that more than three-quarters (76 per cent) of investors in the space expect more acquisitions to take place in the next 12 months alone.

This is backed up by the sentiment of proptech start-up CEOs, also interviewed for the research, with a majority outlining an expectation that the proptech space will become more competitive over the same time period.

Advertisement
Advertisement

Just 10 per cent of CEOs surveyed expressed that the proptech space would be less competitive, while 66 per cent indicated that they foresee the global marketplace becoming more competitive.

The report also queried CEOs on the likelihood their start-up would “be acquired, go public or have a major liquidity event in the next three years”.

Sixteen per cent of start-up CEOs said it was very likely their company would go through one of the above options, while a further 32 per cent considered it a “likely” event.

The results are perhaps unsurprising, with MetaProp flagging the results against a backdrop where one-third of investors see proptech companies as performing above expectations in terms of customer growth.

A further 54 per cent of investors see proptech companies meeting growth expectations.

As flagged anonymously by one investor, that merger and acquisition path is more likely among older players in the industry.

The comments from 31VENTURES investor Kan Notoya lend weight to that stance, with him acknowledging that “since proptech itself is very early as an industry, there are many players only providing a single solution”.

“However, from an enterprise operation perspective, few companies have the capability to integrate various solutions into their operations by themselves,” Mr Notoya said.

“Integrated service offerings will be preferred, especially by companies without enough internal resources to promote corporate innovations.”

REB has previously revealed that “the pandemic actually turned out to be a boon for proptech, as technologies were adopted and put to use faster than they would have been otherwise”, as the report highlighted.

Is proptech now ripe for M&A?
aerial shot residential properties reb
lawyersweekly logo

ABOUT THE AUTHOR


Grace Ormsby

Grace Ormsby

Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.

Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.