So many world number one positions for Israel but does it hold this position for proptech in Israel or its proptech sector? Read on to find out.
The relatively small country of Israel is located at the eastern end of the Mediterranean sea and is one with a diverse topography. This developed country boasts high standard of living and interestingly one of the highest life expectancies in the world. The GDP value of Israel represents 0.60 percent of the world economy. According to OEC.world, Israel is the 48th largest export economy in the world and the 17th most complex economy according to the Economic Complexity Index (ECI).
With a large number of its 8,738,000 people holding tertiary degrees, Israel is also one of the most educated countries in the world with a highly skilled workforce. With 74%+ population being Jewish, Israel is the world’s only Jewish majority state.
Though the capital city here is Jerusalem, the country’s economic and technology centre is the city of Tel Aviv. Recently, Tel Aviv is also getting to be known as the startup hub, one that is a strong match to the Silicon Valley in the US. Interestingly, Israel has the second-largest number of startup companies in the world after the United States, and the third-largest number of NASDAQ-listed companies after the U.S. and China. It is interesting to also see how this startup culture promotes innovation in proptech in Israel and how the proptech sector of here is.
STARTING UP AND INNOVATION IN ISRAEL
In 2019, Israel was ranked the world’s fifth most innovative country by the Bloomberg Innovation Index. On an average it produces 1,000 startups a year. The total number of active startups are anywhere between 4,300 and 6,000. Almost 3000 of these startups are concentrated in the 10 mile radius in an area around Tel Aviv, in the country’s coastal plains, one that is home to the leading high-tech industries of here. This area is termed as Silicon Wadi, second only to the leader Silicon Valley in the US.
Abundance of venture capital, a host of crowdfunding opportunities, good infrastructure as well a supportive startup community has made Tel Aviv popular, and Israel even more. With high rating of its education systems, as well as number of nobel scientists produced, Israel is also leading world discussions about innovation. With a culture of science and tech, innovations are in abundance here, not just to local problems but for a worldwide audience. This being said, there are not enough innovations in the proptech in Israel and proptech is still a somewhat ignored market.
To understand how proptech in Israel works, it’s imperative to understand what drives real estate demand here. Interestingly, the commercial real estate demand here is not only driven by hi-tech corporates but by the plethora of startups and growing companies that want to have a strong base in Israel. Concentrated mostly in Tel Aviv and Silicon Wadi, these companies have helped commercial real estate grow and prosper. On the other hand, the housing sector is also rising as the demand for quality housing is on the rise in the established cities and upcoming developments.
Real estate tech in Israel or proptech is really on a growth trajectory as innovations and startups are on a rise. Entrepreneurs of here are taking it upon themselves to find solutions for local problems and even create global products. There is work happening in the fields of online brokerages, Virtual Reality tours, cloud computing for valuation, chat-bots and so much more.
The star in the space of proptech here is definitely the globally recognized Real, which is an online real estate brokerage driven by technology. Their tools and services include a location-based lead-generation system, a centralized online advertising solution, CRM, accounting, training and support, data and reporting tools, cloud CMA comparative market analysis reports, a referral platform, and free E&O insurance.
The leading player for virtual reality (VR) based technologies in Israel is a Bnei Brak-based Metanoia Interactive. It is revolutionizing the proptech in Israel by providing lifelike 3D simulation of a client’s home or property, and through its VR platform it allows the client to walk around inside it, using VR goggles, so that the viewer does not have to leave the office. Inside the VR simulation a client is then able to design and decorate the property choosing tiles, bricks, furniture and more. Another company working in the same domain is RealtyVR.
Other than the many platforms for real estate listings and classified, there are a number of startups that are also in the space of rental property management, ERP solutions, CRM, real estate management and analytics.
The platforms doing different work in this space are:
Founded in 2014 by Dan Zakai and Yotam Alroy, the company operates co-working spaces across London, Berlin, Munich, Hamburg, Tel Aviv, Warsaw and now the U.S. The company raised $35 million to date for its global expansion. This co-working space gives the benefits of boutique design and services with the expertise and reliability of a global provider. Mindspace gets one excited about coming to work so your business can thrive. Members see better employee engagement and satisfaction, drive higher productivity and innovation, attract and retain the best talent, and have the peace of mind to focus on their business.
MIXER brings a high-end blend like no other. They mix people & spaces, technology & well being, challenges & wins. It’s a work space, a home, a retreat, a hub bursting with creativity. The offices, the ample comfortable lounges, the sunny open spaces, outdoor nooks, the state of the art kitchens are all mindfully created to support an invigorating work experience. They offer a place where you’re acknowledged, encouraged, and cared for by the best. The MIXER offices modular design is ideally suited for tailoring to team size – from 1 to 100 , and more. From startups, midsize companies, entrepreneurs, freelancers, to fortune 500 companies – all who are looking for a one of a kind work experience.
Founded in 2014, Urban Place is a new and innovative collaborative work space, located in one of the greatest area for business and start-ups, in a modern tower offering spectacular sea view. They offer a variety of beautiful closed offices, open shared desk, meeting rooms and events area, combined with high quality services that will put you in the best conditions to perform your work and develop your business.
SURE Universal Ltd.
This startup provides a complete software platform for the smart home and Internet of Things (IoT). SURE’s Software-Defined IoT (SD-IoT) architecture allows scalable, secure and user friendly solutions. SURE Universal Ltd. is hardware agnostic to enable interoperability with different IoT hardware. SURE Universal is the only platform able to deliver a complete, standard compliant IoT software solution to Telco and cable operators giving them maximum interoperability and data security.
Datumate utilizes state-of-the-art computer vision, big data analytics, machine learning, drone and camera technologies. This dramatically reduces the amount of time surveying crews spend in the field, speed up construction progress and shorten infrastructure inspection duration, while maintaining survey grade accuracy. Datumate was recognized by CIO review magazine as one of the “20 most promising construction technology solution providers 2017” that are at the forefront of providing technology solutions for the construction industry and having a significant impact in the marketplace.
WAY FORWARD FOR PROPTECH/ REAL ESTATE TECH IN ISRAEL
Real estate tech in Israel or proptech is still is in its growth phase here. With more economic progress, rise in entrepreneurship and a culture of innovation, this sector should pick up more in the coming few years. While a lot is happening for proptech in Israel, so much more needs to be done for Israel to become a world leader in this space. The opening of the first ever construction-tech hub in Israel is also a great step forward, Construction Innovation Zone initiative aims to infuse real-estate development and construction with Israeli-style startup innovation.