PropTech in Spain is on the rise, from 2013 to 2018, 174 proptech start ups were created in Spain, with an average of thirty new companies per year. Madrid is the host to one of the most innovative events in the real estate sector in Spain, the PropTech Unconference on 23rd October, 2019. In Spain, proptech has grown a 120% in a year, and currently generates over 5,000 direct jobs, as per a 2019 report. The startups related to this business area offer innovative business models that integrate disruptive technologies to speed.
With the upbeat Spanish housing sales are expected to increase from about 500,000 units last year to between 625,000 and 650,000 in 2019, according to TINSA. Home sales in Spain surged 10.6% to 481,220 units in the first eleven months of 2018.
Spain and its story
A country with diverse geography cultures, Spain is made up of 17 autonomous regions and is situated in the Iberian Peninsula. With its vast area, Spain is the largest country in Southern Europe, with a population of over 46.56 million. Though its largest, as well as capital city, is Madrid, Spain’ s other cities like Barcelona, Valencia, Seville and Malaga are highly popular too. This developed country is an economy with a globalist mindset. Spanish companies have invested and ventured into foreign lands since 1990′ s and this early expansion has helped Spain have a global competitive advantage as compared to its European counterparts.
The climate of Spain, its geographical location, popular coastlines, diverse landscapes, historical legacy, vibrant culture and excellent infrastructure, has made Spain’s international tourism industry among the largest in the world. In the last five decades, international tourism in Spain has grown to become the second largest in the world in terms of spending. All these factors together contribute to the growth and development of proptech in Spain, and give chances for proptech to develop here.
It is also interesting to see entrepreneurship flourish in Spain. There is an increase in venture funding and the new generation of entrepreneurs is not just ones bringing international ideas home, but innovating to create local and global products. As the unemployment rates here continue to remain strong at14% as of 2019, the youth is turning towards entrepreneurship. Startup incubators, specialist lawyers, and experienced business advisors help ensure that entrepreneurship here is about building sustainable businesses. Funding networks in Spain now include public money, venture capital as well as business angels. Due to its strategic location, Spain’ s startup environment enjoys exceptional geographical diversity and open routes to the world. This means, even more, good news for proptech in Spain, and creates immense opportunities for proptech to disrupt the property market.
PROPTECH IN SPAIN
In Spain, there are over 13 million homes with Internet access and 2 out of 3 people use the Internet on a daily basis and 67% search home through real estate sites. This, combined with the fact that the startup ecosystem in Spain is highly conducive, leads to more doors and windows for proptech in Spain. Technology here has blurred the lines of traditional business of real estate, though the adoption of new hi-tech tools is still slow in this sector.
The proptech in Spain is booming and there are hosts of startups and companies working to bring cutting edge technology to Spain. The proptech here made up of some specific segments like Peer To Peer lending, marketplaces and portals, Big Data, Crowdfunding, Internet of Things (IoT), Management software, CRM and real estate management. Some interesting companies here are:
Badi was founded in September 2015 by Carlos Pierre Trias de Bes, and is currently headquartered in Barcelona, Spain. This startup leads the online room-rental marketplace that makes city living accessible for everyone, from remote locations. They offer a seamless user experience in a supply-constrained market. Badi has also created a trusted community who can easily and securely list and book unique rooms. They facilitate bookings and online safe payments through the platform. It remains to be the pioneering prog-tech startup to implement Artificial Intelligence for greater effectiveness when connecting profiles seeking for long-term rentals solutions.
This is an online real estate agency that sells properties without commission or intermediaries. They had a significant capital raise of €6 million in May, 2019. Housfy has sold more than 2,000 properties since its foundation in 2017. They are now on the track to lead the real estate platform in Southern Europe. Housfy lowers agency commissions drastically and enhances the home sales process and user experience. With their proprietary technology, they have improved consumer experience for both buyers and sellers.
Founded in 2017, Clicpiso is the first Spanish startup that buys a house/ home in less than 7 days. They also pay you immediately. Their proposals are the fastest, simplest and most transparent in the proptech market.
Spotahome has a business model that is similar to online holiday rentals. It helps you find a home for stays of a minimum of 30 days. This is dependent on city regulations. They are a 100% online booking platform, offering an exhaustive list of apartments, rooms, studios, and student residences. It eliminates the need for in-person viewings and thus saves both tenants and landlords the time and expense. They also provide professional photos, design floor plans, and record high-definition videos to judge the property.
ProntoPiso is a real estate agency that lets users to search for apartments and homes. In 2018, this Spanish startup received €400,000 in public funding. ProntoPiso accumulated more than €3 million through venture funds Global Founders Capital, Picus Capital, and Global Growth Capital in 2017.
It is also interesting to see Spain’ s focus and involvement towards creating smart cities that directly impacts and creates proptech in Spain. Valencia, Barcelona and Madrid, in particular, rank among the 50 ‘ smartest cities’ in the world. There is no doubt that the emergence of smart cities is having an incredible impact on the real estate sector in Spain, opening up new types of real estate, new forms of commerce and investment and, therefore, new regulations to make correct use of them. The proptech in Spain is flourishing and this is a good time for it to change the way real estate is traded.
WAY FORWARD FOR PROPTECH IN SPAIN
Proptech in Spain is a sector that is experiencing high growth. Rise in entrepreneurship, the good real estate market, as well as foreign interest in this market, is ensuring that the proptech sector is ripe with innovation and intelligent tools. In the coming few years, we can expect Spain to give competition to global markets, with the right government direction. The strategic geography of Spain opens up doors for the startups of here to cater to international markets easily, and have access to the best of knowledge, funds, and talent.