Proptech Facts

A little round-up of some of our insights + facts in the proptech sector. Where in the world do we see interesting developments, what are the trends and what technologies are being adopted, and why?

APAC

As the largest emerging real estate market and the second largest developed real estate market, APAC is expecting growth in both lanes in the next 5 years.

Despite pessimism in other regions, 71% of APAC retailers are planning to expand/add new stores (!!).

The continued optimism in this market has not gone unnoticed, and we are seeing large real estate firms and investors looking to increase exposure to assets and firms in APAC.

South East Asia

A report by the World Economic Forum recently noted that 5m people per year will move to urbanized areas in SE Asia over the next 30 years, a catalyst for new housing and amenities such as air conditioning.

Some stats:

- The # of air conditioning units is expected to rise from c.50m to 300m (!)

- 50% of these are expected to be in Indonesia

- The 200 GW of electricity needed for this extra cooling is close to Germany's current electricity generating capacity (and nearly double the UK's capacity).

Sustainable growth is crucial to many in the hypergrowth regions of APAC, with many having codified these into national strategies, whilst strongly embracing SDG7 (access to clean and affordable energy).

As such, we are seeing a growing demand for technologies in APAC, enabling a rich ecosystem of Proptechs to thrive.

India

Did you know that by 2030, there will be an anticipated 5m homes built annually in India (v 500k p.a in 2019)? Moreover, REITs have only operated in India since 2019, and we believe this vehicle type will help the aggregation of key markets which will unlock real value. We are seeing many interesting deals coming by and many want access to the market as capital is flowing from China into other countries, like India.

Saudi Arabia

The futuristic $500 billion megacity NEOM has moved to the building phase of the project and the first destination Sindalah, which is meant to turn into a luxury (holiday) destination.

Besides Sindalah, 3 more cities will be built:

Trojena will be the go-to destination for mountain and dry-land excursions.

The Line, the flagship city of the four megacities.

Oxagon will be the centre for advanced studies, where NEOM will further drive its research on being completely self-sustaining, using merely solar, wind, and hydrogen as energy sources.

All four cities are around the same themes: Technology, Nature, Livability, Sustainability and Community

Cleantech

Approximately $6.4 trillion will be invested in Cleantech in developing countries over the next ten years. About $1.6tn of this will be via new technologies, many of which are focusing on China, Latin America, and Sub-Saharan Africa. Areas such as onshore wind, EVs, small hydro, bioenergy, solar panels, and wastewater treatment expecting markets are the key focal points, with energy access, energy efficiency and energy independence being key drivers The opportunity within green entrepreneurship is vast but also needs significant support, particularly in securing early and growth-stage financing for medium-term payback horizons.

3D Printing

The construction industry is evolving rapidly with 3D printing concrete (3DPC) at the forefront of this transformation. We have seen the adoption of 3DPC accelerate recently, and the benefits derived are substantial.

1. Increased Efficiency: 3DPC is enabling the construction of complex building components at greater speed and accuracy, ultimately leading to faster project completion times.

2. Reduced Waste: the precise nature of 3DPC, is helping reduce new Construction's impact on the environment whilst also acting as a vehicle for recycling.

3. Strength: In conjunction with advanced materials and other work, 3DPC is able to offer greater green strength than conventional concrete.

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