As the German PropTech space continues to develop, the coming few years promise more innovation and adoption of technology in Real Estate Tech in Germany.
Germany is the most populous nation of the European Union, one with more than 82 million inhabitants. Its largest metropolis is its capital city of Berlin. Interestingly, Germany is also the next most popular destination for immigration after the US.
This great powerhouse nation boasts of an outstanding economy and is a world leader in many industrial and technological sectors. By terms of nominal GDP, Germany is the world’s fourth-largest economy. What makes Germany a developed nation is not just its advance LGBT rights, its high standard of living but even its universal healthcare system as well as tuition-free university education provision.
Popularly known for its rich cultural history, Germany has been home to many influential and successful artists, philosophers, musicians, sportspeople, entrepreneurs, scientists, engineers, and inventors. There are many large cities here with a social market economy, low level of corruption, high level of innovation along with a highly skilled labor force. Though the automotive industry of Germany is regarded as the most innovative and competitive in the world, it is known for opportunities in real estate investment too and is often known as a safe haven for global capital. This sets an interesting tone for us to further discuss real estate tech in Germany and the opportunities for PropTech here.
With continued industrial development and immigration, the demand for real estate in Germany is on the rise. There has been a record of office letting volumes in 2016 driven by high employment numbers. Due to a limited supply of office space in the large cities, the prices have been rising. Its residential, healthcare and hospitality sector has been very popular as an investment opportunity by the global market. The growing real estate market also means more scope for real estate tech in Germany or PropTech here. But before that, let’s take a look at the startup ecosystem of here.
Starting up in Germany
It is no news that Berlin is regarded as Europe’s start-up capital and attracts many international young entrepreneurs. With lots of good funding opportunities and a great infrastructure, Germany is very conducive for starting up and sustaining. The rise of startups in the digital sector has also sparked the employment growth here, playing an important role in the German economic development. Almost 10% of startup founders and 22% of their employees come from abroad, indicating the high immigration numbers of here. It is interesting to note that in the past few years, there has been a rise in the number of startups in PropTech or real estate tech in Germany. It is a hot sector that is witnessing high growth and increased interest from investors.
Real estate tech in Germany
The high population of Germany drives its real estate demand as well as makes it a significant volume market. Though a significant number of new buildings have come up, they are still under the required number. The real estate sector which was initially focussed on land and buildings is now looking at the information sector with renewed interest. This gives scope for a number of startups to flourish in the space of real estate tech in Germany.
With growing real estate tech in Germany, the country is home to a number of startups and entrepreneurs. The PropTech revolution started here in 2015 with more than 25 startups existing in this space in the year. These startups offer solutions in various categories like renting/ selling of properties, agent matching services, marketplaces for real estate classified ads, meta-listing and meta-search services as well as crowdfunding platforms that help integrate fintech with PropTech. Virtual and Augmented Reality is taking the market by a storm and changing the way consumers see property listings.
The PropTech sector, or real estate tech in Germany, here though is still in a nascent stage, and was completely disrupted with the introduction of the ‘Causer Priniciple’ in June 2015, which states that real estate agents have to be paid by their mandating clients and not – as it has been the case before, no matter who initiated the mandate – by the tenants. This has also led to many startups emerging in the space of low cost housing options and leasing services. Hence, the real estate tech in Germany is mostly dominated by B2C platforms. Some of the interesting platforms doing different work are:
McMakler was in the news recently as it raised an investment of €16 million in May 2017 from Frog Capital and others. It is Berlin’s leading online real estate brokering platform. It calls itself a hybrid platform that integrates personal service with intelligent technology.
Slock.it is one of the leading platforms in Germany that is integrating Blockchain in real estate to disrupt the PropTech space of here.
Launched in 2014, Exporo is one of the pioneers for crowdinvesting in real estate projects in Germany. It opens up doors to transparent real estate investment for smaller sums of money.
Started in 2012, Leverton is the leading platform for leverage Deep Learning technology to build a smart data platform, especially for real estate.
Green City Solutions
Out of its other products/services to make your environment green and conscious, the most interesting one from Green City Solutions is the City Tree, which is a mobile and intelligent biological air filter for insides and outsides.
This disruptive platform is in the works of Digital real estate management through one centralized platform for all management and operational tasks concerning data, documents, and processes.
Scope for real estate tech in Germany in the future
The millennials are ruling this growth and the increasing support for entrepreneurship also means that the sector of real estate tech in Germany can flourish. One can expect more platforms and increased tech adoption that can revolutionize the current real estate sector.
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Do you want to know what makes a winning PropTech startup, check out these Top 50 Real Estate Tech startups to watch out for in 2018.
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