If any city should become a proptech hub, it's Atlanta. For many years, this city has consistently ranked in the top 10 of best cities for real estate investors.
That's easy for me to believe because I live and invest here myself. Moving to Atlanta from California is what piqued my interest in real estate, and I was not alone in noticing Atlanta's potential.
So cheers to Atlanta for consistently being a good place to buy, sell, and own real estate. Now let's see what's on the horizon in proptech for this booming Georgia town.
Proptech start-ups in Atlanta
New York City is currently top dog for proptech (property combined with technology) companies, but Atlanta is fast approaching. As of September, 23 real estate tech start-ups call Atlanta home.
Some notable Atlanta proptech start-ups, according to Tracxn, include the following:
- PadSplit, a co-living and shared accommodation company
- Saltbox, a shared warehouse and office space provider
- Worktopia, an online platform to book meeting space
- Properly, an online brokerage
- SimpleShowing, an online brokerage
- PREP, a manager of food prep spaces
- Deskpass, an online marketplace to book shared office space
- New Home Guide, a listing platform for houses and part of RentPath
- Tenaciti, an app-based apartment search platform
What makes Atlanta attractive?
Atlanta is well-poised to be a noted proptech region. Georgia Tech produces graduates that often stay in Atlanta, and many go on to launch start-ups. The most iBuying activity in the country is in Atlanta, and Atlanta's infrastructure is impressive -- since it's a major transportation hub, the city is home to the world's busiest airport by passenger number.
Atlanta, with its cluster of historically Black colleges, makes the city a top spot for Black entrepreneurs. In fact, about 36% of Atlanta's tech workforce is Black or Hispanic. The only city to have a higher percentage of Black and Hispanic tech workers is San Antonio, Texas.
Besides proptech start-ups, major tech companies, such as Microsoft, Apple, and Airbnb, plan to open offices in Atlanta to increase diversity in their workforces while not sacrificing talent. Indeed, Atlanta was the highest-ranked city last year for the quality of its tech talent. "Atlanta is what a next-generation, global, post-Silicon-Valley tech hub looks like," Lisa Calhoun, with Atlanta-based Valor Ventures, told TechCrunch.
The proptech sector consists of real estate start-ups that offer innovative technologies, often reimagining old real estate business models. The sector has grown 300% every year for over a decade.
Proptech companies include any start-up that uses technology in the real estate industry. They could include fields such as property management, homebuilding, construction management, building design, marketplaces for online real estate, virtual reality for home viewing, and drones to take aerial photographs of property.
The real estate investor takeaway
Real estate has traditionally been an industry slow to change. But proptech companies are changing that. Besides looking at Atlanta to buy and sell property, real estate investors might want to look into proptech start-ups.