WEST MIDLANDS EXPLORES THE NEED FOR PROPTECH SANDBOX TO SUPPORT UK GROWTH
Following on from the launch of the PropTech Blueprint published in summer 2022, Greater Birmingham and Solihull LEP have further invested in the strategic opportunity for the region. Working once again with global leading consultants CBRE, this next phase further demonstrates the importance of the accelerating PropTech sector.
Over the last five years, investment in PropTech – the use of technology in real estate – has increased significantly, with £8.4 billion funding in 2020*. In Europe, the highest number of PropTech companies are based in the UK but predominantly in London. The first phase work makes the case for the PropTech industry in the West Midlands focusing on how it can attract private sector investment, positively contribute to GVA, create and grow start-ups, and generate new jobs for the local economy. This latest phase is to specifically explore the need for physical test space to support real estate innovation, the entrepreneurial journey of proptech founders and accelerate growth of the proptech sector.
When discussing the appointment CBRE's Harri John, Head of Digital Advisory said:
"As with other tech sectors, access to real data and sandbox environments can have a transformative effect on the growth of proptech businesses. The appointment of CBRE to explore this need is a pivotal moment in the development of the regional proptech ecosystem. As a cross cutting sector, the potential to impact on critical themes such as decarbonisation, wellbeing, smart cities is huge, so we’re looking forward to better understanding and developing the proposition.”
Commenting on the investment, Hilary Smyth-Allen Executive Lead at SuperTech remarked:
“This work is the natural next step for the development of the West Midlands proptech ecosystem, but one that will also significantly contribute to the UK. Frequently, when engaging with potential proptech inward investors, we hear that the provision of physical test space is a differentiator in the decision making of entering new markets. If such an asset is to exist in the UK, the West Midlands would be a natural home in terms of the fundamental core ingredients required, such as a thriving proptech scene, access to talent, national connectivity, proximity to markets to name but a few.”
Work starts in November, concluding in Q1 of 2023. Through SuperTech, CBRE is inviting PropTechs to take part in the consultation process throughout December/ January. Any interested parties should register interest through the form below.