The real estate investment industry is experiencing a new boom that’s worth paying attention to.
After a decline in investments following the financial crisis in 2008, real estate technology is now on pace to experience its second straight year with over $1 billion in total outside investments, a positive sign for the industry overall.
What is real estate tech? It’s a type of financial technology that makes the process of investing in real estate more straightforward. Users of real estate tech can use the product to invest in specific properties or in broad categories of properties such as industrial, residential, or commercial. The growing capacity for these technology companies to streamline the investment process has caught the eye of venture capitalists who are betting big money on the success of this growing financial technology trend.
Another positive sign for the industry is that at least two real estate tech start-ups, Compass and OpenDoor, have received valuations of over $1 billion.
In a world where companies like AirBnB and Uber have made substantial impacts in their respective industries through the use of technology, real estate tech could be a major development for real estate investors everywhere.
Photo Courtesy of kaboompics