A fast-growing hybrid movement

PropTech is an illustration of the transformation of the property sector and the rise of new players looking for innovative solutions to renew the user experience and improve productivity. Drawing on Big Data, virtual reality and connected objects, they are seeking to develop the property sector in line with new consumer trends.

To date, France has 250 companies involved in PropTech, from all areas of the property industry: finance, insurance, construction and even smart cities and the sharing economy. In total, more than €550 million[1] has already been invested in the movement.

Facilitating the buying and renting process at all levels

Their main target: young households living in the Paris metropolis but lacking the funds to become home-owners. More broadly, the sector is targeting new generations who use digital tools to organise and manage their daily lives. The aim of PropTech is to facilitate the entire buying or renting process, from the project design phase through to property management and moving house.

The Virgil start-up, for example, is offering to co-invest up to €100,000 in a property purchase to help the younger generation get on the property ladder. Since 2017, the company Garantme has been helping the younger generation to find a flat by acting as a guarantor, thereby reassuring landlords about their profile and their ability to pay their rent each month. Garantme works with nearly 3,000 estate agents and has assisted over 45,000 applicants in 6 years. In a different vein, Mesetys – an anagram of Système – has developed a digital platform for architects that centralises plans, 3D data and exchanges with private individuals, and ensures reliable archiving to save time and free architects from organisational constraints. There are many examples of tools and services.

A comprehensive approach to property issues

However, PropTech is not just about rethinking the property sector, it is also committed to reimagining a city designed “by and for users” that takes account of its vertical development, constantly changing uses, heterogeneous communities and environmental impacts. For example, Square Sense collects and analyses all the data generated by the use of a building to optimise its environmental and financial performance. The start-up is currently stepping up its expansion in Europe, North America and Asia.

So, is PropTech heralding a revolution towards a more collaborative, innovative and sustainable way of thinking about the future of the property sector? At the very least, it is already creating a new dynamic because, between 2015 and 2019, investment in French companies in the sector rose by… 240 %[2]!

[1] https://www.lejdd.fr/Economie/proptech-ces-start-ups-qui-reinventent-limmobilier-4116793

[2] https://infonet.fr/lexique/definitions/proptech/