Real estate is all around us– an economy of physical space that literally shapes our lives by just being the environment in which we live and work in. Technology has helped the real estate industry in leaps and bounds, especially recently. The transformation that real estate technology (PropTech) could bring to our lives is larger and more profound than one might think.
Despite real estate being– by far– the largest asset class in the world, most business categories surrounding it are still in the early stages of tech adoption. Even still, there have been more billion-dollar real estate tech companies founded in the last 15 years than almost any consumer services category (behind e-commerce). Generational trends and shifting consumer behaviors are creating an opportunity for a new wave of real estate tech startups with high growth potentials. One of our goals at NFX is to enable these startups to bring profound disruptive change to this important market.
The sheer size of real estate is often underappreciated
Real estate is valued globally at around $228 trillion, a figure which exceeds the global value of equities and securitized debt by fully $79 trillion. In 2017, US residential real estate alone was worth $31.8 trillion and the value of home sales in 2017 totaled about $1.77 trillion. Adding what has been estimated to be $15 trillion in total US commercial real estate assets and a $485 billion annual US rental market. In many ways, land is still synonymous with wealth.
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Join us in Madrid from the 13th to the 16th of November for the Property Portal Watch Conference.