The relationship between established real estate firms and proptech startups is shifting from competition to collaboration.
What once appeared as a clash between tradition and innovation is now evolving into a partnership where each side leverages the strengths of the other. Established firms bring deep industry experience and extensive networks, while startups introduce cutting-edge technology and fresh perspectives.
This evolving synergy is actively transforming the way properties are bought, sold and managed, creating new opportunities for growth and efficiency.
We asked industry leaders how they see this relationship developing and what it means for the future of real estate. Their insights reveal a future where collaboration drives innovation, bridges gaps and creates a thriving ecosystem for all stakeholders.
Leveraging experience and innovation
Rami Tabarra, co-founder & co-CEO of Stake
Rami Tabarra, co-founder & co-CEO of Stake, a UAE-based digital platform for real estate investment, believes the future of real estate relies heavily on the synergy between traditional firms and proptech startups.
“Established firms bring a wealth of experience and extensive networks to the table, offering a deep understanding of the market’s nuances,” he says.
“In contrast, startups infuse the industry with cutting-edge technology and fresh perspectives, which can transform the way properties are bought, sold, and managed.”
He also explains how Stake harnesses the best of both worlds by partnering closely with seasoned real estate firms, agents and property managers like Allsopp & Allsopp, Haus & Haus, Henley & Partners.
“Such collaborations allow us to access premium properties and integrate established market insights with our innovative digital solutions. For our users, this means a streamlined and enhanced investment experience with direct access to top-tier properties in the growing Dubai property market.”
Bridging gaps with mutual benefits
Richard Dana, founder and CEO, Tembo
For Richard Dana, founder and CEO of digital mortgage broker Tembo, the relationship between real estate firms and startups is all about filling gaps.
“There is a huge opportunity to improve efficiency and customer experience by partnering closely together. Established real estate firms have capital, in-depth property industry knowledge and existing customer relationships,” he said.
“These are all the things that proptech startups generally need. Where the real-estate companies often struggle is with innovation, digitalisation and implementing technology.
“They are often restricted by legacy systems and manual processes. Proptech startups can help cut through this.”
Proptech as a strategic asset
Ryan Masiello, co-founder and chief revenue officer of VTS
The integration of proptech into real estate operations is no longer a novelty but a necessity, as Ryan Masiello, co-founder and chief revenue officer of VTS, a technology platform that unifies owners, operators, brokers, and their customers across the commercial and residential real estate ecosystems, points out.
“In today’s market, we’ve definitely evolved to a place where large real estate firms see proptech as being essential and capable of giving them an upper hand in their investment and operations. Instead of questioning the legitimacy and necessity of proptech, most firms today carefully vet what solution(s) would be most beneficial for their business and what’s worth the investment.
“Because proptech companies have developed a much closer relationship with their clients and prospects over the years, real estate firms also possess significant influence over what proptech solutions and updates are developed.
“A good proptech company doesn’t just innovate in a vacuum, they listen to their clients and prospects and solve for the challenges they are facing in their day-to-day, so the most meaningful solutions are brought to market.”
Unlocking new opportunities
Krisanth Sivarajh, core contributor at RACE
Krisanth Sivarajh, core contributor at RACE, a company offering an ecosystem for asset transactions on blockchain, sees great potential in partnerships that streamline processes such as asset onboarding and capital table management.
“For real estate and proptech firms, there are great partnership opportunities on multiple verticals, related to onboarding of assets with streamlined due diligence processes having all stakeholders in one place,” he says.
“Capital table management is another good example of a partnership opportunity where the entire capital table is automated for onboarding investors, handling their distributions, and the waterfall model at exit scenarios. Some products currently do this but they might not be effective enough and by effectiveness I mean capital table automation.
“It should include the entire capital stack and the corresponding waterfall model, which in real estate terms is to automate the entire offering (Private Placement Memorandum). The goal of partnerships should be letting real estate firms focus on sourcing deals while proptech startups start disintermediating the middle layers, opening up new avenues for these deals.”
Ecosystem of collaboration
John Ensign, president and executive managing director, North America, at MRI Software
The growing collaboration between traditional real estate firms and proptech startups is not just about individual partnerships – it’s about building a broader ecosystem where both can thrive together, says John Ensign, president and executive managing director, North America, at MRI Software.
He discusses how his firm actively fosters this collaborative environment within the proptech community.
“Within the proptech community, established firms and startups can both benefit from partnership. For example, MRI Software prioritises an open-and-connected ecosystem based on an extensive partnership programme.
“Through these kinds of programmes, startups can validate their offerings and access a larger client base. At MRI, we see ourselves as an incubator of sorts to proptech startups. At the same time, we can offer our clients a wider choice of solutions by allowing and supporting integrations.
“The relationships that form through these partnerships often lead to acquisitions of and investments in the startups, which is a strategic objective for many recent entrants to the market.”
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