How Covid-19 has affected the Proptech industry
Today, we address what could be next for Proptech after COVID-19. Will the pandemic stimulate significant change in the industry, or will we bounce back to the way things were before it struck us?
We all know that ‘’phase two’’ is on its way for most countries globally, we are all consumed by a two-part preoccupation: when will things go back to normal, and what exactly will be ‘’normal’’ in a post-coronavirus world?
But for a moment, forget about the future and let’s talk on the present. There are some challenges which Proptech are currently facing.
What are these Challenges?
The virus, COVID-19 has created an uncertain situation. It is expected that many businesses will see a decrease in demand and cash flow problems. And this is the greatest challenge Proptech is facing. If the situation persists, this could have a detrimental impact on start-ups and will lead to some causalities.
The second challenge is that investors are deferring and pulling out and pausing funds.
But Not to Worry!
However, the start-ups that simplify processes by reducing the need for face to face interactions or digitalizing physical processes have had the opportunity to shine. Interest in the technology has been increased by corporates which allows them to work normally despite the pandemic.
Decision-makers realize the rules have changed. And those internal hurdles that were preventing innovation have been removed. And it is predicted that adoption of Proptech will rise in the long term. Because companies are being forced to conduct viewings virtually and process property sales online. 35% of Proptech members are expecting growth.