Written in FINTECH he
The proptech of Latin America have great growth potential, since currently these startups receive about 2% of the funds from Venture Capital Worldwide. These are key companies that attend to the great lag of the real estate in the region, while promoting the financial inclusion.
During the KiRE launch event, a platform that seeks to democratize real estate investments, Juan Huicochea Mason, research analyst at Massachusetts Institute of Technology (MIT)) pointed out that “after the pandemic, the sector proptech has been growing to position itself as the fourth most important sector in Latin America, the first being the fintech.
Proptech industry grows for these reasons
On the other hand, the growing demand for housing, the increase in confidence in investment and the sophistication of the entrepreneurial ecosystem have favored the proptech in the last three years, since the Latin American sector went from 300 startups prior to the pandemic (2019) to more than 1,300 companies at the end of last year.
Proptech challenges for 2023
It is forecast that the sector proptech face great challenges for this year, mainly in terms of financial educationaccess to social housing and the digitization of the sector.
“The startups They have been key to inclusion and financial education, both in Mexico and in Latin America. The fintech and proptech they have provided access, tools and insights that were previously highly segmented. In the long term, this will have a significant impact both on the growth of the sector and on people’s quality of life”, stated the KiRE specialist.
Regarding access to housing, Huicochea said that this item has 60% of the current housing demand, given that in Mexico more than 50% of the economy is informal, “this does not mean that people are low-income but that we have a sector that cannot access the traditional financial system so easily, therefore, the proptechthrough branches like the blockchaincan contribute to satisfying the great demand for housing in the country, which exceeds 100,000 units every year”.
In addition, the great challenge for the sector is to serve specific sectors of the population such as millennialspeople between 25 and 40 years old, who represent the most important demographic bonus that is looking for housing, mainly in areas with high population density.
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