Proptechs look back on a record year

Around 666 million euros were invested in start-ups in the real estate sector in German-speaking countries last year. That's more than ever before.

In 2021, proptechs in the DACH region raised more capital than ever before. According to the "Proptech Start-up Report" by Blackprint, around 666 million euros flowed into start-ups from the real estate sector. This means that capital has more than doubled compared to the previous year. Only around 270 million euros were invested in 2020.

A total of 881 proptechs are active in the DACH region. Of these, 654 are start-ups from Germany. The report reveals that proptechs focusing on the operation and management of real estate in particular benefited in the record year of 2021. At around 156 million euros, a full 23% of the financing volume went to these companies. Companies from the planning, construction and renovation sector took second place. They were able to raise around 130 million euros. Around 126 million euros flowed into the smart building sector.

"Companies that offer everything manually today will have to prepare for a tough future. Proptechs that offer automation and therefore more efficient, error-free and, in case of doubt, cheaper solutions will conquer the market," says Sarah Schlesinger, Managing Partner at Blackprint. The demands on the construction and real estate industry for greater sustainability, ESG regulation and decarbonization are currently increasing. Schlesinger is certain that despite these challenges, the upward trend for proptechs will continue this year. "The trend for 2022 is absolutely clear: the volume of financing and the number of financing rounds will increase significantly."