Will COVID-19 lead to consolidation?
COVID-19 hit the PropTech sector at a time when the wave of founding euphoria had already receded and given way to a certain degree of consolidation. IPO failures and certain corrections in the speed of growth of well-known pioneers in their field are visible signs that more rationality has found its way into the sector.
Due to the coronavirus crisis, investors have started to review their portfolios to establish whether they were fit for the future. This could lead them to be more selective going forward and to refocus their attention on PropTechs offering the greatest opportunities. Opinions on whether COVID-19 will lead to consolidation are divided, not only in the PropTech sector overall, but also within certain PropTech categories.
This is particularly apparent in the marketplaces and smart building/IoT areas. In both of these categories, as well as in the software/CRM/data management area, PropTechs believe consolidation is more likely than not.
In any case, the big challenge for PropTech will be to ensure their survival until the additional demand for digital solutions can fully develop again.You will find a summary of the Swiss PropTech Study* 2020 here.
* This study is brought to you by swiss real estate innovation network SwissPropTech and its research partner Credit Suisse. Since 2018 the Credit Suisse Asset Management is also proud sponsor of the annual SwissPropTech Day taking place in Zurich/Switzerland.