Proptechs look back on record year

Around EUR 666 million was invested in startups from the real estate sector in German-speaking countries last year. This is more than ever before.

In 2021, proptechs in the DACH region were able to raise 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. In 2020, only around 270 million euros were invested.

A total of 881 proptechs are active in the DACH region. Of these, 654 of the startups are from Germany. The report reveals that in the record year 2021, proptechs with a focus on operating and managing real estate benefited in particular. With around 156 million euros, a full 23 percent of the financing volume flowed into these companies. Second place went to companies from the design, construction and renovation sector. They were able to raise around 130 million euros. Around 126 million flowed into the smart building sector.

"The companies that offer everything manually today will have to brace themselves for a tough future. This is because proptechs that offer automation and thus provide more efficient, error-free and, in case of doubt, cheaper solutions will conquer the market," says Sarah Schlesinger, Managing Partner at Blackprint. Currently, the demands on the construction and real estate industries for greater sustainability, ESG regulation and decarbonization are increasing. Schlesinger is confident that despite these challenges, the upward trend for proptechs will continue this year. "The trend for 2022 is absolutely clear: funding volume and the number of funding rounds will increase strongly."