PropTech and Paving the Way for Sustainability in Real Estate (Riyadh Valley Company)

Summary

• Global venture capital investment in proptech fell 14.3% in the first half of 2024, to about $4.4 billion from $5.1 billion in the first half of 2023.p.7
• The proptech market is expected to reach $40.6 billion by the end of 2024 and $133.1 billion by 2032.p.9
• In a survey of 1,088 proptech startups, 91% plan to raise funding.p.9
• In the first half of 2024, MENA startups based in Saudi Arabia and the UAE raised $455.5 million and $300 million respectively.p.8
• Since 2023, AI in proptech has raised about $2.2 billion in venture capital rounds across 254 deals.p.8
• The real estate sector consumes about 40% of total global energy and causes about 30% of emissions.p.4

Key insights

1. CRETI data show early-stage funding at 63.7% of the funding of responding startups.p.9
2. Companies allocated about $42.1 billion to technology innovation in real estate between 2022 and 2023.p.9
3. Saudi venture capital firms took part in 60 deals in the first half of 2024, followed by UAE firms with 41 deals.p.8
4. The United States was the leading foreign investor in the MENA region, investing in 31 startups.p.8
5. 68% of construction companies consider energy efficiency a priority in climate tech.p.6
6. Proptech investments in the region reached $101 million in 2022 across 30 deals.p.8