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Global residential proptech market worth $260 trillion

Residential proptech is all about improving living standards, achieving sustainable development goals, and democratising investments

Singapore’s proptech market is projected to grow at 30.1 percent CAGR  from 2020 through 2025, opening many doors for investors. Trong Nguyen/Shutterstock

Residential real estate has a global worth of approximately USD260 trillion, which is roughly eight times the value of commercial real estate — office spaces and retail outlets included. The overall market capitalisation of the world’s listed firms is at a whopping USD85 trillion, yet the housing market accounts for only one-third of that amount. 

Kay (Kosuke) Kato, President of WealthPark Lab, stated in WealthPark Residential Proptech 2022 that, “‘The biggest wealth in the world’ and ‘The latest information technology’ — we believe that where these two intersect, there will be affluence and happiness for people and society. At the intersection of these two, residential PropTech companies are there around the world, those names are still unknown to the general public.”

Last year, residential proptech won the industry over and what it left in its wake was an opportunity for 2022 to accelerate adoption and growth. In H1 2021, it hit a record high in terms of inflow of venture capital (VC) funding. 

More: Proptech paves the way for green building adoption in developing countries

The market’s insatiable hunger and industry’s abundant resources are breathing life into new business models, supported by related financial services and cutting-edge technology (the Internet of Things (IoT), metaverse, and blockchain residential proptech).

The expected average for residential proptech this year is a CAGR of 13 percent, up four percent from the historical five-year revenue CAGR of 9 percent of traditional real estate, according to Digital Journal.

Residential proptech is all about improving living standards, achieving sustainable development goals, and democratising investments. These are means to adapt to the changes brought by the COVID-19 pandemic.

For example, in data provided by Ken Research, Singapore’s proptech market is projected to grow at 30.1 percent CAGR  from 2020 through 2025, opening many doors for investors. Virtual and augmented reality technologies, for example, are offering immersive viewing experiences, especially for overseas buyers and properties

The Property Report editors wrote this article. For more information, email: [email protected].

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