F5.5G Leap-forward Development of Broadband in Africa The Africa Broadband Forum 2024 (BBAF 2024) was successfully held in Cape Town, South Africa recently, under…
Flow is ‘barometer of proptech growth in SA’
It comes to no surprise that fintech is the kingmaker in the African investment space. After all, the value of this is set to exceed $7 billion. However, while 60% of that is attributed to fintech, proptech is slowly but surely gaining momentum.
Global investment in proptech topped $32 billion in 2021, up 28% from a dire, Covid-hit 2020 and 3.23% up from 2019, according to the Centre for Real Estate Technology & Innovation’s 2021 Real Estate Tech Venture Funding Report.
“Proptech is democratising an industry that covers one of humanity’s essential needs – everyone needs a roof over their heads,” says Flow co-founder and co-CEO Gil Sperling. “The real estate industry was being left behind in the world of online transactions because of their complex and expensive nature – it’s a massively fragmented space.”
“The online audience in South Africa has grown immensely over the last two years – out of necessity – so brands have been working hard to meet consumers online and make them more comfortable with transacting there,” says Daniel Levy, co-CEO and co-founder of Flow.
“Proptech is one of the fastest-growing spaces in South African tech right now because consumers are using the online space to meet more of their needs – and an essential like property is a huge one.”
Flow is ‘barometer of proptech growth’
Sperling says that if Flow is a barometer of the growth of adoption of proptech in SA, things are looking bright. “We’re seeing 30% month-on-month growth, with a 10x growth in property-related social spend over the last 12 months,” he says. “Those are the kind of numbers that make investors take notice of a sector.”
Metaprop’s Year-End 2021 Global Proptech Confidence Index showed that 71% of investors expect to make more proptech investments over the next 12 months, up from 54% six months ago. Up to 49% of proptech funding went to residential tech, with just 7.6% of that investment focusing on commercial owners and tenants.
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