FinTech investors are now increasingly investing in PropTechs and are currently ensuring a sustained boom in this segment. The real estate industry offers them lucrative and higher and higher investment opportunities. Deutsche Bank is also involved with a million investment in the Hamburg-based PropTech HAUSGOLD.
PropTechs are the FinTechs of today!
The growth potential of the digitized real estate market is huge. No wonder that now banks are also interested in technological developments in the industry”.
PropTechs combine the classic business models of the real estate market with the digital world. With the help of technological developments, many services can be processed quickly and transparently online. There are already more than 300 PropTech companies in Germany – and the number is still rising.
Sebastian Wagner, founder and CEO of HAUSGOLD
The global real estate market is about 200 trillion euros. In Germany, the real estate industry is one of the largest economic sectors and accounts for around 18% of gross value added. Therefore, the online business of the real estate industry is particularly tempting for investors. The demand for real estate remains strong in 2019. Housing prices will also reach a new record high this year, in the context of low interest rates, according to the Federal Statistical Office’s price index.
In FinTech, many investors recognized the growth potential of innovations such as crowdfunding or mobile payment systems. Some of these startups have become successful financial companies today – with the result that venture capital in German fintechs is declining today. Following the digitalization of the financial industry, more and more FinTech investors are realizing the potential of a digitized real estate market. They now rely on the construction of PropTechs.
The real estate business is a lucrative investment for financial service providers
A real estate purchase and sale is a big cash event and involves a high transaction for all involved. 80% of a property owner’s property is in the property itself.
Banks are increasingly investing in PropTechs. One example of this is Deutsche Bank’s million-euro investment in the propulsion company HAUSGOLD, which was founded in early 2014 by Sebastian Wagner. In addition to the fast growth of the startup, the investors especially convinced the digital platform model of HAUSGOLD. An independent broker network ensures that the right broker is chosen for the seller and his property – a service that Deutsche Bank now also offers to its own clients and thus meets the spirit of the times. Apart from the banks, the interest in PropTechs in insurance companies is also increasing.
Also published on Medium.