Property news shows that on a global scale, real estate tech has experienced an impact. This noticeable change is not on a small scale either but on a big one.
A study undertaken by Falkon demonstrates that between 2012-2015, approximately 282 real estate tech startups were launched every year. However, the figures dropped to a humble 69 in 2015-2016, which makes it a 75.5% decrease.
These figures are just as bad as when we analyse the big real estate markets such as San Francisco, Chicago, Toronto, New York and London. 53 startups were launched between 2014-2015 followed by 15 more during 2015-2016. New start-ups during this period meant a 70% decrease.
It seems that some of the biggest tech companies in the world face a similar situation too, which signifies that location doesn’t shape much of the outcome.
Fidelity Investments and BlackRock Inc. have invested billions into tech startups in hope of a successful return and in the meantime, they have been keeping their eyes on the market stake. The implications may be very costly and disruptive to real estate tech, and more importantly to the housing market in general.
Startups are responsible for innovative practices in driving efficiency and productivity as well as overall growth and success in the real estate industry. This is another reason why this property news is so prominent. Judging the market right and making sensible decisions are absolute keys to property investors. The tech industry is very unpredictable, which makes it even more essential to monitor the previous state, current state as well as making future predictions.
If there is a disproportionate decline in growth companies in the real estate market, then capital and labour remain frozen in legacy real estate businesses. It is profoundly true to say that the real estate tech market and the industry as a whole needs to be continuously revitalised for optimum results, encouraging growth and for supreme imagination.
In today’s dynamic and fast-moving and ever-evolving economy, businesses are certainly born, they tend to flourish and then plummet over time. However, you can make the right decision by trusting a reputable company who supplies trustful knowledge and education on the property market as well as being able to guide you in the right direction.
Written by Gemma Smith