Technology is playing an increasingly central role in the construction and real estate industries as they usher in a new era, opening themselves to new types of methods, business models, and disruptive processes. More specifically, enterprises and investors are increasingly interested in disruptive technologies and innovations in the ConTech and PropTech domains. The technology adoption trend in the construction and real estate industries has also been accelerated by the COVID-19 pandemic.
The pandemic and subsequent worldwide lockdowns and quarantines have reinforced the value of the home. The expectations of homeowners and renters have risen as they seek fully functioning homes that include space to live, work, and play in. The commercial real estate space, in turn, is also affected as the growth of remote and/or hybrid work is causing significant shifts in the use of real estate.
ConTech and PropTech refer to the intersection of ‘property’ and ‘technology’ and ‘construction’ and ‘technology’, respectively. These industry areas correspond to the vast ecosystem of startups and emerging growth companies that offer technologies and/or innovative products, services, and business models across the real estate market.
Israel, the “Startup Nation,” is one of the countries leading the way in ConTech and PropTech. The country has the world’s highest number of startups per capita, and over the past five years, the innovation ecosystem has seen a rise in ConTech and PropTech solutions. The report highlights the Israeli ecosystem, maps the noteworthy solutions and identifies industry trends in ConTech and PropTech.
The first section focuses on major developments in the real estate and construction industries as well as industry characteristics that have impacted and driven the need for technology integration over recent years. From there, the report reflects on the technology trends shaping the future of these industries and examines the main areas for innovation and technological development in the ConTech and PropTech spaces. Lastly, the report covers the main factors that have brought Israel to become a ConTech and PropTech leader. Disruptive technologies in the real estate and construction industries will only become more prominent in the future, and this report is a comprehensive resource to foresee the direction these technologies are trending towards.
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Authors:
Amit Harel
Partner, Services to MNCs
Co-Leader,
Deloitte Catalyst, Tel-Aviv
Aharel@deloitte.co.il
Doron Gibor
Partner, Head of the Real Estate Industry
Deloitte Israel
dgibor@deloitte.co.il
Omri Bitan
Director, Real Estate Sector Consulting Leader
Monitor Deloitte Israel
obitan@deloitte.co.il
Maya Trajtenberg-Madar
Senior Consultant,
PropTech Specialist
Deloitte Catalyst, Tel-Aviv
mtrajtenbergmadar@deloitte.co.il
Israel Trade and Economic Commission in Sydney, Australia 