Translated by
2020/06/29 13:20:58

Technologies in the field of the real estate (the market of Russia) of PropTech Property Technologies


PropTech (from engl. Property Technologies - technology in the real estate) - the phenomenon many-sided. It integrates all modern innovative technologies and application solutions in the field of creation of the real estate and management of it (the transactions connected with the real estate, the investment analysis, construction and design, development, the maintenance of the real estate, etc.).

Startups in the field of PropTech develop in two main directions: offer the tools capable to help professionals to improve the services in the field of the real estate or to increase productivity, or aim to replace professionals.

2020: Investment volume into startups for the real estate market can double in 2020

On June 29, 2020 TAdviser knew that investments into startups for the real estate market can double in 2020 according to forecasts of experts of an accelerator from Glorax Infotech.

Investment volume into startups for the real estate market can double in 2020

The Russian PropTech market was rather conservative, but the pandemic became its catalyst: for June, 2020 growth of interest in technologies for the real estate market is observed.

Investments of profile funds and developers into the Russian startups of PropTech in 2019 exceeded 700 million rubles, all 10 bargains were concluded. At the end of 2020, according to forecasts of experts of Glorax Infotech, investments in technology for the real estate market can reach 1.5 billion rubles. It is equivalent to growth by 100% in a year.

Situation and an additional factor of complexity in the form of a pandemic stimulate the companies in economy to look for other models of work and customer interaction. Often developers develop original services and products. There are examples of successful cooperation of developers with IT startupsAndrey Birzhin, the head of Glorax Group, the head of an accelerator from Glorax Infotech noted.

So far the investment volume into the Russian PropTech is less than 1% of world and 1.8% of the European. Meanwhile, according to PropTech1 Ventures, the annual average rate of a gain (CAGR) of capital investments in PropTech of technology in Europe is 45%. If in 2014 77 million euros were invested in the European startups of PropTech, then for the next 5 years the volume of investment money in the market grew almost to 500 million euros (jump for 550%).

The most active venture investors by the number of transactions in Russia are such funds as IIDF, AFK "Sistema", AltaIR Capital, Pulsar Venture Capital, Runa Capital, ImpulseVC, RVC, The Untitiled. At the same time the largest total investment volume into the companies of the PropTech market arrived from the following funds: Rusnano Sistema Sicar, Sistema Venture Capital, Larix, Hartmann Holdings, IIDF.

In Russia in 2019 the main part of investments fell on only two transactions, the companies "Is made" also Attic. Besides, only one was made ekzit – the Occipital corporation made an exit from GeoCV, transaction amount was $7 million.

"Is made" it is founded in 2014 and is engaged in an overhaul of apartments, the design can be selected on the website using the online designer from ready combinations. The number of the executed projects approaches five hundred. "Attic" — service of storage of things for residents of Moscow, is founded in 2018. Service packs and takes away things, brings to a safe warehouse, online to all things provides access and brings back on demand.

So far in structure of the PropTech market in Russia more than a half of the companies are marketplaces on purchase and real estate lease or rendering services in the real estate or construction. The significant share is the share of the companies in the field of design and construction (Apis-Cor, TraceAir) and also startups by assessment, data analysis and the collective investments (Aktivo, Geointellect, Habidatum) and the companies in the field of management of ready objects (Wiren Board, Throne).

In the Russian market strong interest in startups in the field of Big Data and AI is noted, but there is no explicit leader. This race will be won by the one who will create the most convenient analysis algorithms of Big Data, for example, for simplification of interaction of participants on marketplaces.

Besides, effects of a pandemic and development of remote interaction of the companies and clients in connection with requirements to social distancing stimulate the PropTech market to creation of other segments and niches. It comes in all segments of lifecycle of the real estate, from design and construction before sales and management.

As in the market there are no universal solutions, it opens a large number of opportunities for development of startups. In it and 2021 we will see steady growth of the industry of PropTech. Those early investors who will invest in the base for platforms of interaction between market participants in creation of universal solutions, will be able to reach a leading position in the market. We started an accelerator from Glorax Infotech to help the most perspective startups to enter the market and to promote digitalization of the real estate market — Andrey Birzhin noted.

2017-2018: Research KPMG

Survey results of KPMG company, 2018 spent in the summer among the leading players of the real estate market, showed the following: 97% of respondents consider that digital and technology innovations anyway will have an impact on their business, at the same time 60% are convinced that influence it will be considerable. 78% of respondents noted that such influence already increased within last 12 months[1].

Most of survey participants (73%) assess PropTech positively, considering this trend as a new opportunity for development of their business, however 25% see in it and a peculiar threat. Recognizing inevitability of innovations and their general positive orientation, 56% of respondents confess that cannot speak about 'a digital maturity' of the companies yet. Only 7% of respondents are convinced that they are in this area at the advanced boundary.

30% of survey participants noted that they already invest or are going to invest startups in PropTech, and 66% indicated that they have no clear idea of perspectives of use of digital and technology innovations, the corresponding strategy yet.

It is interesting how in a year ideas of survey participants of what achievements of PropTech will have an impact on activity of their companies and on the real estate market in general changed. So, most of survey participants of KPMG of 2017 (53%) assumed that in the closest three years of their company they most likely will use PropTech innovations in the field of 'Big Data' (from engl. Big Data - the structured and unstructured data differing in outstanding amounts and a variety processed by certain software tools) and analysts.

Speaking about what trends of PropTech in the next five years will have the greatest impact on the real estate market in general, 44% of a respondentov also selected big data, 16% noted possibilities of Internet of Things (from engl. Internet of Things, IoT is a single network, the objects connected among themselves through the Internet capable to collect data and to exchange them. Home appliances, cars, etc.), and 15% - development of artificial intelligence can belong to such objects.