How is Technology Affecting Real Estate Construction?

Construction technology as a segment has often been overshadowed by the other proptech segments but the tables seem to be turning in the last few years. A focus on autonomous construction technologies and a wide array of innovations not limited to assistive software could be the reason for the same. High resistance from those working in the construction industries has also been deemed as one of the factors affecting this area in its infancy.

Higher smartphone usage and awareness opens up new avenues for technologies across industries. The same has been the case with this particular segment of real estate technologies where the increasing use of smartphones paved the way for app based construction technology services to find success globally. Cloud-based software startups are multiplying and being adopted faster than ever. The new range of products startups offer today are focused on optimizing every aspect of the construction process through software, use of drones, AI, robotics, and much more. The likes of Procore and Rhumbix have emerged as successful players in this segment.

Technology in real estate construction has augmented how things are built in multiple ways. It embodies several aspects apart from the way a property is built, and includes technologies required to make buildings more energy efficient, safer, and long lasting. HexGn’s research uncovers an immense growth in the investments into the segment over the years. Availability of capital creates easier access to technology and rising competition within firms to leverage technologies like AR, VR, drones, and AI among the others can be looked as some of the catalysts in helping contech expand. The funding amounts raised by construction technology startups globally have grown through the years up till 2018. However, there were years that it hit a rough patch with amounts being invested going south. In 2018, the total disclosed funding came down by almost a quarter in as compared to 2017 from $522.8 million to $398 million. The cumulative funding by the end of 2018 was $3 billion. This is the amount from the 414 deals whose details were disclosed; the total funding for the 2005 to 2018 period stands at 551.

Scroll to Top