This is the first Hungarian overall outlook on the market by PropTechZoom and all analysis and data is accurate to February 2022. We expect a further update in the coming month with data collected continuously. Our author is Zoltan Kalmar, from PropTech Zoom, leader of the Hungarian PropTech Association, and a Hungarian PropTech evangelist.
The purpose of this analysis is to put Hungary on the global PropTech map as there was no such an audit of the Hungarian market except a couple of global consultants which scanned just a couple of PropTech companies. My vision is put Hungary on the PropTech map by telling the world why the Hungarian tech industry is so effective and could be a great incubator for big success stories (such as Prezi.com, Ustream, Logmein, and the new gangsters AImotive, Bitrise, or Banzai Cloud).
The success of such stories could be the high level of education, for example in Budapest Technology University or in Codecool, the usual creative way of thinking like Hungarians always had, and last but not least the unregulated circumstances give opportunity for those companies who do not like barriers, especially in the field of real estate, where the market is quite segmented and there are lot of opportunities for disruption. Hungary has been a test country for bigger tech giants to launch a new product or test it.
The Hungarian PropTech industry has gone through a long journey, and the breakthrough was in the last 5 years where the numbers of proptech companies increased by almost 50%.
This market is not as advanced as in western countries, but it’s holding its own in terms of new PropTech startups and investment. I examined 43 PropTech companies which is undeveloped comparing to neighbouring countries, but more and more creative minds and solutions starts its journey here.
There are some which has an old history and born before we even used the word PropTech or startup, so I rather call these mature tech giants now and not startups, such as Graphisoft, one of the biggest architectural BIM firm, ingatlan.com, which is the leading property portal with a unique penetration or archiFM, which is a maintenance software for a long history and now bought up by Tungsram. These companies generating not only revenues but huge profits as well. Almost all of them is sold except ingatlan.com which is still in the hand of the founder.
In the second category there are PropTech companies which has a huge market share in Hungary, create real value for real estate companies, they mostly financed themselves, or has a strategic investor. These companies grow from year to year, such as BauAPP, or Plandoc.
In the third group there are companies which just started growing and its biggest problem now that they cannot hire as many people as they need, the covid changed dramatically their market and there is a huge demand for their product on the market. These will be the new stars, such as ParkL, or Invensol.
In the fourth group there are the young disruptors, those who would like to change the status-quo or try to use out the new technologies such as blockchain which mature challengers could not use as not as flexible as before.
Overview of PropTech in Hungary
The Hungarian property industry is not really transparent, quite similar to other CEE countries which has the advantages and disadvantages as well. This could be innovative circumstances and opportunity for those companies who would like to create a product for non-developed markets, and would like to change the rules, but this market circumstances also slows down the acquisition of a tech companies as the openness is not really high towards innovation.