The amount of money invested in real estate technology startups is on pace to set a record in 2021, according to a new report.
According to a report from Chicago-based Jones Lang LaSalle Inc. (NYSE: JLL), through the first half of this year there has been a record $9.7 billion invested in real estate tech startups, up from up from $8.8 billion that was invested in the first half of 2020.
The report indicates the number of real estate tech startups has grown from 2,000 to 8,000 in the past 10 years, and they've raised a total of $97 billion during that time. About half of the companies and funding raised have been in the United States, with regions hosting the most number of proptech startups including New York, San Francisco, Los Angeles, the Silicon Valley and Chicago. China is the second-largest market in the world for proptech startups in terms of funding.
The report indicates companies are taking advantage of developments in computing power, analysis and connectivity, which have been accelerated by the Covid-19 pandemic.
“Technology is at the center of the most important trends shaping business and real estate. That includes hybrid work, health and safety, and sustainability initiatives, all of which are in high demand. That’s why we expect funding within this sector to break records this year," said Ben Breslau, chief research officer at JLL, in a statement.
