During 2023, Latin American startups raised US$4 billion in capital, around 10% was directed towards technology for Real Estate.
The technology industry for the real estate sector ( proptech ) faces a period of turbulence in raising investment and although greater dynamism is expected in 2025, some startups have begun to look for alternatives, such as migrating to other markets.
According to Andrea Rodríguez, founder of PropTech Latam, during 2023, Latin American startups raised a total of US$4 billion in capital and around 10% went to proptech firms.
In this sense, Rodrigo Ramírez Organista, general partner of GAIN (Angel investment fund in Guadalajara), mentioned that investors have moved forward with caution due to the political and economic environment in the region, interest rates and the behavior of the exchange rate. .
“We see slow progress, but 2025 could be a better year, since stock market IPOs have begun to reactivate in the United States and this cascade of capital could end up benefiting all of Latin America,” he stated.
For his part, Carlos Rousseau, managing partner of Reach Latam, added that the strategies of large funds were stopped in recent years due to the threat of a fall in the economy of the northern country; However, its landing was less aggressive than expected, which will benefit the industry.
“ Proptech is expected to reach US$30 trillion in global investment in 2024, higher than last year. Mexico would have a similar upward trend, since it is turning to see the country as one of the technology powers in the region, after Brazil,” he declared in an interview.
Migration to the United States
Proptech companies—characterized by their creativity—have sought new alternatives to continue their growth process, one of them has been entering the United States market. Rodríguez pointed out that it is not a simple step, but there are already some cases that have achieved it.
“American businessmen have shown interest in Latin American talent, although you have to have knowledge of the market, its idiosyncrasies, its customs and the opportunities. In the end, this is a collaborative ecosystem,” added the specialist.
Likewise, Francisco Macero, founder and general director of Kolonus, highlighted that the migration of solutions to the neighboring country to the north is a trend that will be seen more frequently in the following years.
“There are multiple North American investors who know the potential of our market. If a functional technology is developed for Latin countries, but with the capacity to sift it and bring it to operate in the United States, there are multiple investors willing to pay for it,” he said.
Segments of interest
According to data from PropTech Latam, the real estate technology industry in Latin America rose in the ranking of sectors of greatest interest to investors in 2023, placing it in second place, only after fintech (technology for the real estate sector). financial).
“This speaks to the fact that Real Estate players are beginning to understand that technology must be incorporated. The most requested tools are Fintech, Real Estate, Big Data, artificial intelligence and innovation for construction,” said Rodríguez.
One of the segments explored is the management of residential condominiums. Francisco Macero explained that the size of this market in Mexico reaches US$67 billion annually in software as a service (applications for end users).
Kolonus, for example, offers a management system for vertical and horizontal homes. To date, it has managed to exceed 700 registered condominiums, more than 270,000 active users and operates in 25 states of Mexico.
