UK proptech investment reached a record £1.6bn in 2021 and has more than quadrupled since 2020. 2021 UK proptech investment levels are more than 15 times higher than the £105.68m invested in 2016, demonstrating the rapid rise of the sector. The surge in UK proptech investment is due to the creation of tech solutions in areas such as logistics, sustainability, construction robotics, and workplace wellbeing. More recently, companies have sought to capitalize on the nascent metaverse by building solutions that link the physical and digital world. A surge in proptech mergers and acquisitions has also driven activity in the sector.
Global proptech investments increased from £7.07bn in 2020 to £15.52bn so far in 2021. There has also been an increase in investment pumped into proptech solutions that aim to decarbonize the sector. Proptech investment is significantly growing year on year, as the real estate sector is increasingly aware of the operational performance gaps that have been unaddressed for several years. The UK real estate sector wakes up to the changes required to reach net-zero targets, landlords, investors, and occupiers are realizing that technological adoption will play a crucial role in future-proofing assets and meeting sustainability pledges.