London for proptech

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London is the European capital for property tech (proptech), home to more than 600 companies, and one of the leading centres globally. Here are five reasons why proptech is thriving in the city.

1. London's ecosystem

The capital is home to the main client base for proptech: the real estate community.

Major landlords and investors are based in London, many with European head offices, such as CBRE, JLL, Colliers International and Cushman & Wakefield, as well as international headquarters including Landsec, Segro, Intu Properties and Hammerson.

London’s proptech ecosystem showcases specialist incubators and accelerators, such as Geovation and RELab, and leading industry organisations including the UK PropTech Association, New London Architecture (NLA), the UK Green Building Council (UKGBC) and the British Property Federation.

2. A hotbed of talent

London has one of the world’s most diverse talent pools for proptech, from architecture and blockchain to construction and data science. The city boasts 141,600 employees in the property sector (23.3% of the UK total) and a further 197,200 employees working in construction.[1]

Two of the world’s top 50 universities for engineering and technology are in London[2]Imperial and University College London (UCL) – as well as The Bartlett, UCL's Faculty of the Built Environment.

There are also 13 London universities that offer real estate and planning courses, with more than 10,000 students currently enrolled.[3] The capital's universities offer eight master's degrees focusing on real estate, plus a further 31 courses across urban planning, sustainability and design.[4]

In 2022, London was ranked as the strongest city in the world for improving real estate longevity due to its environmental, economic and innovation impacts.[5]

Fantastic initiatives support professionals in London's proptech industry, such as UKGBC’s Future Leaders programme and NLA’s NextGen initiative, which focus on the development of business leaders in the built environment. 

3. Access to capital

In 2022, £479.4m of venture capital (VC) was invested into London’s proptech sector with more than 53 rounds. The average seed round funding in London stands at $889k – compared to the global average of $821k.[6]

There was £1.4bn of VC investment in London proptech companies between 2017 and 2022. This momentum looks like it is set to continue with more than 1,100 VC firms currently based in London, with the capital ranked third on Schroders Global Cities Index as of February 2023.[7]

Just a few of these firms with offices in the city include Europe’s largest proptech VC, A/O PropTech, and specialist VC funds Pi Labs, Fifth Wall, Concrete Ventures and Round Hill Ventures.

4. Sustainability

London is increasingly leading the way on sustainability, with several eco-friendly initiatives focused in the industry.

London Councils coordinate cross-borough projects on retrofit and low-carbon development. These programmes address major sources of current and future carbon emissions and support important co-benefits around inequality, health and green economic development.

The Greater London Authority (GLA) has launched the Business Climate Challenge, aiming to reduce participating companies’ building energy consumption by 10% in the first year.[8]

NLA's Net Zero programme brings together built environment professionals and decision makers to share best practices and accelerate the adoption of climate solutions to create a greener, zero-carbon London.

Modular home building and high-quality off-site construction is being pioneered in the UK by innovative London-based housing associations, such as Swan Housing and its in-house development and building arm Nu Build.

Major private sector developers and consultancies are fuelling the drive towards sustainability, thanks to their net-zero commitments. UK-based British Land, Landsec, Grosvenor Group and The Crown Estate are all committed to reaching net-zero carbon by 2030.

5. Data and innovation

The adoption of proptech innovation is accelerating and is supported by initiatives in the public sector, including the Ministry of Housing, Communities and Local Government (MHCLG), Transport for London (TfL) and the GLA.

The Infrastructure Mapping Application (IMA) provides utilities, local authorities and others with an interactive digital map to identify growth and opportunities for joint street works. The tool contains planned and speculative future infrastructure investment data, and growth and development data, alongside relevant layers of context (social, environmental and policy) that are available to the public.

NLA’s Urban Innovation programme connects tech experts and built environment professionals in London to collaborate on innovative ideas and transform the city and solve key urban issues.

London is a city of collaboration. The Planning DataHub is a collaborative project between all of the planning authorities in London to build a single open data set of development proposals in the planning process.

Find out more about sustainable business in London.

London is where it’s at. The real estate companies are here. The tech companies are here. The VC investment is here. The real estate investment is here. The energy is here. The skills are here. The opportunity is here.
Alex Edds
Director of Innovation, JLL UK

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We can help you:

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