Colombia’s Proptech Industry is Thriving, Leaving Coffee Behind.

Colombia: A Rising Proptech Hub in Latin America

In the past ten years, the proptech industry has experienced significant growth in the United States and Europe. Now, Latin America, specifically Colombia, is emerging as a mature proptech market. Two key factors are driving the demand for proptech solutions in Colombia. Firstly, the country’s population of 50 million is in need of improved and new housing options. Secondly, the construction sector, which contributes 4 percent to Colombia’s $314.5 billion GDP, requires digital modernization.

Colombia has established itself as a leader in real estate technology startups in Latin America, surpassing even Brazil and Mexico in this regard. The Colombia Proptech Association, founded by Andrés Leal, CEO of Triarii and a Bogotá-based consulting group, has played a significant role in creating an ecosystem where startups can associate with academics and real estate developers. Currently, there are 200 proptech and contech startups in Colombia, with notable successes such as Habi, which raised $300 million last year, making it the second unicorn in the country. Overall, the startups in Colombia have access to at least $1 billion in capital.

While Brazil leads with 800 proptech startups in Latin America, Colombia has a strong presence with 60 percent of its startups located in Bogotá and 40 percent in Medellín. These startups have generated over 5,000 jobs, with a focus on residential brokerage transactions (40 percent), property management (20 percent), construction tech (5 percent), office space (5 percent), and hospitality (4 percent).

Driving Factors and Successes of Colombia’s Proptech Industry

Colombia boasts a talented tech workforce, but local funding from Nu Colombia, Nubank’s Colombian subsidiary, has also played a crucial role in the sector’s development. The investment in Colombia’s proptech startups primarily comes from U.S. venture capitalists, followed by Mexico-based VCs, with a smaller contribution from Colombian-based VCs and accelerators.

One successful Colombian startup, La Haus, has expanded its business from Colombia into the larger Mexican market. La Haus, a residential marketplace based in Medellín, connects developers with homebuyers and has completed over 30,000 home sales. Another startup, Castia (formerly Acasa), raised $38 million in early-stage venture capital funding to expand into Mexico after participating in the Y Combinator accelerator program.

The growth and influence of PropTech Latam Summit, a major conference and networking organization in Latin America, also highlight the increasing importance of proptech in the region. The organization has held 16 events in eight countries since its inception in 2018. Colombia, with its strong construction and contech industries and the demand for more housing and office space, is seen as an exciting real estate tech sector in Latin America.