Digitisation & Green Transition – Danish PropTech Report 2024

Investments in proptech continues to rise, as do the overall digitisation and use of data in the industry. However, the new report reveals that 50% operate without a digital strategy for decision-making. The green transition is now the standout challenge for real estate, making data more important than ever. Learn more below and make sure to download the new Danish PropTech Report 2024.

Continued demand despite uncertain market

In the Danish Proptech Report 2024 more than 300 companies participated in the survey to offer key insights into the development of the Danish proptech ecosystem and provides a status on digital maturity, developments, challenges and investments. Participants in the survey include startups and digital providers. Of these, 54% saw an increase in demand for their products in 2023, with 27% reporting high or very high growth rates. Although these figures are lower compared to previous years, demand for new real estate technologies continues to grow despite market uncertainties and difficulties in securing funding in a more cautious market. 

This is also reflected in the figures and number of investments, with a slowdown in venture capital investments after a record breaking 2022. Even though numbers are lower than in the previous years, demand for real estate technologies continues to grow, as does the number of Danish proptech startups and solutions in the market.

One in three established real estate companies has worked with one or more startups over the past year to develop or implement new solutions. The rate of collaborations between startups and established companies has stayed the same as the year before, suggesting that the economic downturn and market uncertainties haven’t reduced their willingness to work together. 80% of respondents in real estate also indicate that they intend to increase their investments in digital solutions in 2024.

Green transition now the standout challenge

In 2022, only one-third of respondents considered the green transition a major challenge. Now, more than half see it as their main concern, far surpassing other issues. This shift is due to increasing proactive demand and regulatory requirements.

For many, this is their first deep dive into working with data in a structured manner. The roll-out of legislation around ESG reporting (Environment, Social and Governance), including EU Taxonomy and CSRD (the Corporate Social Reporting Device) is a key driver of change, with also a third stating regulatory demands a challenge. 

”New technologies and legislative demands challenge the real estate industry, and they drive the overall biggest opportunity and challenge right now: the green transition. This highlights the need for better data understanding and skills to utilise available data. In short, it’s a defining data challenge. And one that is best solved through working with others - sharing experience and hard won learnings”, explains Michael Ambjørn, CEO, PropTech Denmark.

Only half have a digital strategy for decision-making

Even though numbers are rising each year, projections suggest it will not be until 2031 that nearly all companies have adopted a digital strategy. The lack of strategy, skills, and knowledge makes is difficult for organisations to meet demands, maintain competitiveness and indeed adhere to regulations.  

46% of proptech suppliers state that the main barrier to growth is the traditional attitudes of real estate companies - and 31% point specifically towards a lack of decision makers in real estate with sufficient digital skills or understanding hereof, the report states.  

This is confirmed be the established real estate players when only 50% have adopted a digital strategy, even though 90% use data in decision-making processes. However, only 10% believe that not investing in digitisation is worthwhile, marking the lowest scepticism to date. The lack of skills and knowledge within the organisation along with a lack of prioritising of the necessary time, too little knowledge about the potentials of digitalisation and a lack of knowledge about the relevant solutions available are all stated as barriers in the report.

“As the saying goes: “Don’t tell me your priorities, show me your calendar and your budget”. If your organisation doesn’t have a digital strategy yet, you are certainly not alone. You will, however, become the minority with the risk of being left behind. One practical way to get started through using the Danish PropTech Report to start the conversation at board level, and with your frontline colleagues. Take the time to explore how you compare with others in the industry. And explore the PropTech Guide for inspiration - the solutions are out there… ” states Michael Ambjørn, CEO, PropTech Denmark.

Danish PropTech Report

The Danish PropTech Report 2024 was compiled and published by PropTech Denmark with thanks to KOMPAS VS, proptechfonden, EIFO and other investors to help sense-check key data from the Danish proptech ecosystem. Ejendom Danmark has provided employment numbers, Colliers and RED transaction volume data. Reports from Bolius and CIFS have helped broaden the perspective.  

Dive into the full Danish PropTech Report 2024 below.

Questions about the Report?

Reach out to CEO Michael Ambjørn, ma@proptechdk.dk