So many world number one positions for Israel but does it hold this position for real estate tech in Israel or its PropTech sector? Read on to find out.
The relatively small country of Israel is located at the eastern end of the Mediterranean sea and is one with a diverse topography. This developed country boasts of the 34th largest economy in the world, high standard of living and interestingly one of the highest life expectancies in the world. With a large number of its 8,737,420 people holding tertiary degrees, Israel is also one of the most educated countries in the world with a highly skilled workforce. With 74%+ population being Jewish, Israel is the world’s only Jewish majority state.
Though the capital city here is Jerusalem, the country’s economic and technology centre is the city of Tel Aviv. Recently, Tel Aviv is also getting to be known as the startup hub, one that is a strong match to the Silicon Valley in the US. Interestingly, Israel has the second-largest number of startup companies in the world after the United States, and the third-largest number of NASDAQ-listed companies after the U.S. and China. It is interesting to also see how this startup culture promotes innovation in real estate tech in Israel and how the PropTech sector of here is.
Starting up and Innovation in Israel
According to the World Economic Forum, Israel ranks number 2 in Innovation, in the world. It produces 1,000 startups a year. The total number of active startups are anywhere between 4,300 and 6,000. Almost 3000 of these startups are concentrated in the 10 mile radius in an area around Tel Aviv, in the country’s coastal plains, one that is home to the leading high-tech industries of here. This area is termed as Silicon Wadi, second only to the leader Silicon Valley in the US.
Abundance of venture capital, a host of crowdfunding opportunities, good infrastructure as well a supportive startup community has made Tel Aviv popular, and Israel even more. With high rating of its education systems, as well as number of nobel scientists produced, Israel is also leading world discussions about innovation. With a culture of science and tech, innovations are in abundance here, not just to local problems but for a worldwide audience. This being said, there are not enough innovations in the real estate tech in Israel and PropTech is still a somewhat ignored market.
Real estate tech in Israel
To understand how real estate tech in Israel works, it’s imperative to understand what drives real estate demand here. Interestingly, the commercial real estate demand here is not only driven by hi-tech corporates but by the plethora of startups and growing companies that want to have a strong base in Israel. Concentrated mostly in Tel Aviv and Silicon Wadi, these companies have helped commercial real estate grow and prosper. On the other hand, the housing sector is also rising as the demand for quality housing is on the rise in the established cities and upcoming developments.
Real estate tech in Israel or PropTech is really on a growth trajectory as innovations and startups are on a rise. Entrepreneurs of here are taking it upon themselves to find solutions for local problems and even create global products. There is work happening in the fields of online brokerages, Virtual Reality tours, cloud computing for valuation, chat-bots and so much more.
The star in the space of PropTech here is definitely the globally recognized Real, which is an online real estate brokerage driven by technology. Their tools and services include a location-based lead-generation system, a centralized online advertising solution, CRM, accounting, training and support, data and reporting tools, cloud CMA comparative market analysis reports, a referral platform, and free E&O insurance.
The leading player for virtual reality (VR) based technologies in Israel is a Bnei Brak-based Metanoia Interactive. It is revolutionizing the real estate tech in Israel by providing lifelike 3D simulation of a client’s home or property, and through its VR platform it allows the client to walk around inside it, using VR goggles, so that the viewer does not have to leave the office. Inside the VR simulation a client is then able to design and decorate the property choosing tiles, bricks, furniture and more. Another company working in the same domain is RealtyVR.
Other than the many platforms for real estate listings and classified, there are a number of startups that are also in the space of rental property management, ERP solutions, CRM, real estate management and analytics.
The platforms doing different work in this space are:
A cross between real estate tech and FinTech, Ownerhood is a platform for crowdfunding of the property market so each individual can invest in property with a small investment.
Dorbel is in the business of online living management and helps make the process of renting and living in a property easier. Its app provides services like a database of available properties, virtual tours inside prospective apartments, and even the option of automatic transfer of utilities, such as electricity and gas, after renting.
This is real estate valuation platform for appraisers and is an online, cloud-based software platform that aims to simplify real estate valuations.
Housee calls itself a real estate chatbot and is doing intriguing work in the real estate tech in Israel. It is a Facebook chatbot designed to assist users in finding their ideal home as fast and conveniently as possible from mobile or desktop devices.
In the business of computer vision and augmented reality, Astralink’s system is designed to significantly reduce construction costs by using computer-vision technology to prevent construction errors.
There is one line that best describes what Homeppl does, it also indicates how it can revolutionize the market- Digital Resume for Renters.
This technologically forward company is in the business of 3D property models. It is building the technology to create, design, and share online, interactive 3D property models.
Way forward for real estate tech in Israel
Real estate tech in Israel or PropTech is still is in its growth phase here. With more economic progress, rise in entrepreneurship and a culture of innovation, this sector should pick up more in the coming few years. While a lot is happening for real estate tech in Israel, so much more needs to be done for Israel to become a world leader in this space. The opening of the first ever construction-tech hub in Israel is also a great step forward. Construction Innovation Zone initiative aims to infuse real-estate development and construction with Israeli-style startup innovation.
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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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