BREAKING PROPERTY NEWS – 02/12/2021
Daily bite-sized proptech and property news in partnership with Proptech-X.
CRETI: $768 million invested in multifamily proptech this year
In the latest edition of This Week in Proptech, a US-centric weekly investment briefing issued by CRETI, the focus was on real estate technology companies building out solutions for the multifamily sector.
In partnership with the National Multifamily Housing Council, an association for leaders in the apartment industry, CRETI analysed VC investments in private companies working in the multifamily space.
The briefing states: “Since 2017, $3.04 billion has been invested in multifamily real estate technology across 193 companies at a median funding amount of $5.9 million.
“Year-over-year, the compounded rate of growth, by dollar volume, has increased by 15% with $768 million invested in multifamily real estate tech companies year to date.
The increased flow of capital has also been met with an increased flow of new companies. Since 2017, an average of 29 companies per year have raised capital at an average growth rate of 2% per year.”
After a sluggish 2020, the multi-family market looks strong, with investment in 2021, to date, within touching distance of the previous year.
In July of this year, occupancy rates rose to 96.9%, surpassing the previous record of 96.5% in 2000. With the lifting of many restrictions that impacted renters during the pandemic, and US unemployment down, more people are looking to rent a multifamily space.
2022 appears promising for multifamily proptechs looking to address current trends, not least the growth of remote work, the increase in younger people renting, and lower vacancy rates across the US.
£5000 boost for homeowners who install electric chargers
PRESS RELEASE via National Association of Property Buyers: Homeowners who install a charging point for electric vehicles could see the value of their property soar by as much as £5,000.
Boris Johnson announced on Monday that all new homes will have to include a charging point in the future.
Now a leading property buyers’ group says there is already evidence that those installing them now are massively benefiting.
Jonathan Rolande, from the National Association of Property Buyers (NAPB), said: “The average charge point costs around £800 and we are already recording cases where homeowners are seeing a quick return on their investment.
“The convenience of a ready-made charging point is proving popular with buyers who own an EV or intend to buy one in the near future. Currently we estimate it could add at least £3000 to £5000 to the value of a property and this trend will carry on.”
Mr Rolande said the number of properties being listed for sale which included a charging point is now five times higher than a year ago.
And he said although the NAPB “broadly welcomed” the Prime Minister’s announcements he said the Government “could and should” go further in this area.
He added: “At present over 40% of homes don’t have off road parking so we need to be thinking how property owners or those in rental accommodation will charge their vehicles. Street lighting could be used or developers could simply add numerous charging points in the street on a pay as you go basis. The Government could and should go further.”
Under new laws to be announced by Boris Johnson today (MON) supermarkets, workplaces and new housing developments were told they must have electric vehicle charge points from next year.
The aim is to create 145,000 charging points in the run-up to 2030, when sales of new petrol and diesel cars in the UK will end. The Prime Minister is expected to tell the Confederation of British Industry’s three-day online conference: “This is a pivotal moment – we cannot go on as we are. We have to adapt our economy to the green industrial revolution.
“We have to use our massive investment in science and technology and we have to raise our productivity and then we have to get out of your way.
“We must regulate less or better and take advantage of new freedoms.”
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