Proptech is technology being used to maximize how individuals research, rent, purchase, sell and manage properties. The cross-industry technology is a current trend in commercial real estate, benefiting developers, investors, and property management organizations. Proptech startups aim to make the real estate sector (particularly in densely populated cities) more effective, efficient, and accessible for all parties.

Due to its prominence as the most widely held financial asset in the United States, real estate is a dynamic sector where innovative practices emerge regularly. From coworking to coliving, the real estate business innovates and modifies its efforts to meet demand. Forbes reported that real estate tech grew by 1,072% between 2015 and 2019, with no indications of slowing down. Since 2014, the rise of the PropTech industry has been noticeable. According to a survey by RE: Tech, worldwide venture capital investments began in 2011 at 186 million USD and increased to 2.67 billion USD in 2016 and 12 billion USD in 2017. According to MetaProp's latest Mid-Year 2018 Global Proptech Confidence Index, ninety-six per cent of investors expect to make the same or more Proptech investments over the next 12 months, this is up 76 per cent from the previous year. Intriguingly, an increasing percentage of these investments are going to firms in the growth stage.

A startup must meet certain criteria to be considered a proptech. The most obvious requirement is that it must operate in the real estate sector. The primary objective is to solve a problem or considerably alleviate strain on an antiquated system by minimizing administrative work for brokers, renters, financiers and potential homeowners, simplifying transactions, and decreasing the likelihood of fraudulent applications in real estate. Traditional real estate suffers from a number of setbacks

With Proptech, companies are attempting to solve these pain points, infusing each stage of the process with innovation and reinventing the existing system.

We've compiled a list of five proptech businesses to provide you with a more in-depth look at this dynamic and fast-paced market.

Bongalow

Bongalow is an end-to-end loan and mortgage origination platform that enables lenders and brokers in Africa to originate and manage loans and mortgages more effectively while providing borrowers with a simple and delightful user experience at the point of sale.

Additionally, the company operates a real estate marketplace that connects Africans from across the world with mortgage lenders, developers, and real estate brokers.

Bongalow, which is already funded by various venture capital institutions, is raising a portion of its seed round through Figg, join the team as they extend their operations across Africa and make homeownership a reality for millions of Africans.

Opendoor

Opendoor’s digital real estate portal aims to simplify buying and selling properties. Sellers may receive a preliminary offer within minutes and then settle the amount Opendoor will pay to acquire their house via a video walkthrough. Buyers may browse properties, arrange tours, and make offers on Opendoor. The firm operates in Atlanta, Austin, Denver, Houston, Phoenix, Portland, Sacramento, and San Diego.

Qualia

Qualia provides real estate professionals with a range of cloud-based title, escrow, and electronic closing tools. It offers remote internet notarization and a mortgage lender platform to streamline processes. In addition to integrating with third-party services, Qualia provides a centralized platform for tools such as FedEx shipment and Google Maps property data. Qualia has raised $65 million in Series D financing, increasing its total funding to $160 million and valuing the five-year-old company at over $1 billion

Reonomy

Reonomy is an Altus Group business that provides commercial real estate insights using AI technology. Having raised $128 million in funding the company's products may be utilized for a variety of purposes, including assisting real estate agents in securing listings and increasing and extending customer lists.

Engrain

Engrain provides a suite of software tools that alter how individuals locate, lease, and manage real estate. The company's products include SightMap, an interactive map that allows consumers to browse for available units within a property, and TouchTour, which empowers leasing and sales centres to engage clients and lease and sell faster. with Engrain’s current funding raise of $3.7 million, the company continues to work with a wide range of developers, including those who build senior living, student housing, single-family homes, and commercial buildings.

The U.S. Bureau of Labor Statistics projects a 4% increase in the number of real estate brokers and sales agents between 2020 and 2030.

Grand View Research, a business consulting organization, estimates that the global real estate industry would be worth $3.69 trillion in 2021, with a compound annual growth of 5.2% to 2030. In addition to its anticipated expansion, real estate is one of the nation's most popular industries due to its tremendous economic potential.