UK proptech investment reached a record £1.6bn in 2021 and has more than quadrupled since 2020, according to venture capital firm Pi Labs.
The London-headquartered firm said 2021 UK proptech investment levels are more than 15 times higher than the £105.68m invested in 2016, demonstrating the rapid rise of the sector.
The surge in UK proptech investment is due to the creation of tech solutions in areas such as logistics, sustainability, construction robotics, and workplace wellbeing.
More recently, companies have sought to capitalise on the nascent metaverse by building solutions that link the physical and digital world.
A surge in proptech mergers and acquisitions has also driven activity in the sector, Pi Labs said. As per the report, there have been 152 global proptech acquisitions in 2021 so far, up from 92 last year.
Recently, HqO, the US end-to-end commercial tenant engagement app acquired its counterpart in Europe, Office App. Likewise, proptech unicorn VTS acquired Lane, an asset management and tenant engagement platform.
Global proptech investments increased from £7.07bn in 2020 to £15.52bn so far in 2021.
There has also been an increase in investment pumped into proptech solutions that aim to decarbonise the sector.
“Proptech investment is growing significantly year on year, as the real estate sector is increasingly aware of the operational performance gaps that have been unaddressed for a number of years. “As the UK real estate sector wakes up to the changes required to reach net-zero targets, landlords, investors and occupiers are realising that technological adoption will play a crucial role in future-proofing assets and meeting sustainability pledges.”