An astounding $2.7 billion was invested in real estate technology in September, a month-over-month increase of 132 percent, according to a new study.

An astounding $2.7 billion was invested in real estate technology in September, a month-over-month increase of 132 percent according to a study published by RE Tech, a Brooklyn-based research firm focused on the proptech market.

The figure is the highest recorded this year, however it was shy of the $6.5 billion invested in the fourth quarter of 2017, the company confirmed.

“Large funding rounds are the new normal for real estate tech,” RE Tech founder Ashkán Zandieh told Inman. “[Venture capitalists] are doubling down on their investments.”

Major investments to the tune of $400 million each to Opendoor and Compass – led by Japanese tech firm SoftBank – grabbed most of the headlines, but they were only the second and third biggest investments of the month.

Lianjia, one of China’s largest real estate brokerages, received $1.5 billion in venture capital money – $1 billion from Chinese conglomerate Tencent Holdings Ltd. and $500,000 from Warburg Pincus, a U.S. private equity firm. Lianjia offers an all-in-one residential real estate experience, coupling its app and website with brick and mortar locations and services that include financing, home decor and property management.

Zak Schwarzman, a partner at MetaProp, the New York City-based early stage venture capital firm, called last month’s investment a “jaw-dropping amount of capital by any measure.”

“It’s even more remarkable when you consider that in 2013, less than $500 million was invested in proptech startups during the entire year,” said Schwarzman, who added that the rising interest in real estate technology began several years ago.

“An unprecedented amount of entrepreneurial talent is focused on this space today,” Schwarzman added. “These recent mega-rounds are a loud, headline-grabbing sign that the winners from this recent wave of proptech startups have broken out and are gaining the resources to aggressively scale.”

“Notably, many of these recent financings are going to startups that fit the mold of disruptor rather than enabler vis-a-vis real estate’s incumbents,” Schwarzman added. “That is only accelerating the speed and intensity with which leading firms across the real estate industry are engaging with the startup and innovation community as they seek to adapt to this changing landscape.”

The biggest September deals, compiled by RE Tech, are below:

Email Patrick Kearns

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription