Investments in the UK’s proptech industry reached £1.6 billion in 2021, more than quadruple the figures from 2020.

According to new research from venture capital group Pi Labs, the new figure is also 15 times higher than 2016’s £105.68 million.

Gloablly, proptech has received £15.52 billion this year, more than double the figure for 2020, £7.07bn. The global sector attracted £5.31bn in 2016.

In addition, 2021 saw 152 global proptech acquisitions, compared to 92 in 2020, and the highest level of proptech activity on record.

Pi Labs analysis claimed that new technology solutions addressing common issues in the real estate world have helped drive the surge in investment. New advancements include logistics, construction, robotics, workplace wellbeing, greater sustainability and bringing the metaverse to the built environment.

An example of this includes Scottish proptech firm arbnco. The company, which provides air quality monitoring systems to make buildings more sustainable and energy efficient, recently signed a major deal as part of an £18.5-million trial to improve air conditions in 30 primary schools.

In addition, Edinburgh-based proptech Desana, which provides a flexible workspace platform to help companies manage how their workforces use office space, raise £2.9 million in funding this year. The company said that the funding will help them expand into new markets demand for hybrid working options rises due to the pandemic.

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Pi Labs CEO Faisal Butt said: “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.”

He added: “On the back of the large wave of capital raised this year, and accelerated adoption within the sector, many proptech companies are now achieving scale and we can expect later stage funding rounds and M&As to drive investment growth in 2022.

“Generalist VCs, particularly tech-focused Silicon Valley investors, are also now starting to get in on the action – especially from Series A.”

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