Proptech and Smart City: Monaco dreams of becoming a European Singapore
Monaco is one of the key players in the development of Proptech and could become the European Singapore in the coming years. Focus on solutions aimed at revolutionizing real estate through digital technology with Jaime Luque, professor at ESCP Business School and the Principality of Monaco.
The Principality of Monaco is at the forefront of innovation and is positioned as one of the key players in the development of PropTech, a recent concept in the technology ecosystem, which embodies the transformation digital in the real estate and construction industry.
“Real estate is a sector of excellence in the Principality of Monaco. Developing smart real estate will allow Monaco to rely on its expertise in this sector to generate economic growth in the digital world. It alone represents 20% of the Principality’s GDP and more than 1,750 jobs. It is a strategic sector in terms of value creation and jobs. says Frédéric Genta, Interministerial Delegate in charge of Digital Transition.
Global investments largely dominated by the United States
Like last year, the PropTech barometer version 2021 shows that the United States is an indisputable center of attraction: with more than 1,079 investors, the country is both the largest investor (56% of the flows of the ten countries that invested the most in PropTech in 2021) and the largest recipient of funds (60% of flows from countries that attract the most investments in PropTech).
The market represents a total of more than 45 billion dollars in funds accumulated since 1999 by American PropTech companies. The Top 3 of the most attractive companies are made up of references well known to the general public: WeWork, a giant in the provision of offices and shared space services with 20.6 billion dollars in investments since 1999, followed by Airbnb, the world leader in rentals between individuals ($6 billion) and the Expedia group, which has several online travel agencies ($3.3 billion).
Behind, Japan and the United Kingdom respectively occupy second and third place in the ranking. Together with the United States, they are the source of 88% of the investments of the 10 countries that have invested the most in PropTech in 2021. Among the rest of the ranking: Switzerland, China, Hong Kong, Bermuda and even Germany.
Projections for 2022 attributed China asserting itself in the rankings by incorporating the table directly to the 2th place of the countries of origin and recipients of the investments.
8 real estate players share 72% of the market
Beyond this inventory, the barometer also shows a virtual monopoly of players in mergers and acquisitions, with 8 companies sharing 72% of the market:
- CoStar Group, a global commercial real estate leader;
- Zillow, specializing in property listings;
- RealPage, which offers property management software;
- Airbnb, a global peer-to-peer housing rental platform;
- Trimble, which aims to provide geospatial software;
- Expedia, a company bringing together several online travel agencies;
- Autodesk, which specializes in publishing digital design software;
- ANGI Homeservices, internet service provider;
” We are in a world that is constantly changing. Strategic real estate players aim to develop their offer of digital solutions to improve residents’ quality of life. It is a lasting trend that does not date from today but which is accentuated from year to year. says Jaime Luque, professor at theESCP Business School and in charge of this research.
Homes account for 50% of Proptech business acquisitions in 2021
The PropTech ecosystem today consists of four basic links: financing of projects, construction of infrastructures, management of sales and rentals, and housing of the housing created.
The study reveals that:
- The housing category accounts for 50% of PropTech business acquisitions in 2021
- In 2022:
- Investments in the PropTech companies “Manage” and “Living” will increase (by 50% and 20% respectively).
- Conversely, investments in the “Finance” and “Build” categories will decrease.
On the other hand, after exploding in 2016 (+110%), the M&A market continues to increase steadily with annual growth of +4%.
” Real estate in a Smart City no longer has anything to do with traditional real estate. Digital technology provides solutions at all levels of the Real Estate and Public Works value chain. Our goal is simple, to make life easier for residents as much as possible. explains Robin Rivaton, entrepreneur and investor.
Network security and power provided by 5G
In Monaco, which aims to be the Singapore of Europe, the digital transformation of all sectors is necessarily conditional on the solidity of the country’s infrastructure.
With the launch last year of the first sovereign Cloud in Europe, Monaco Cloud, 5G and fiber coverage throughout the territory ensuring security and power, as well as government aid (Blue Fund) to support entrepreneurs in their digital projects, the Principality of Monaco has all the keys to make its pioneering model even more attractive, in whatever field.