Proptech has become one of the trendiest words in the real estate industry. Property technology, also known simply as proptech, can be defined as the use of technology and software to assist real estate players with a variety of tasks and functions ranging from virtual 3D tours to automated building management systems. “Proptech is giving commercial real estate (CRE) professionals a competitive advantage in this new era of digitalization of services all around the world,” says German Rosete, global entrepreneur and chairman of Cosmos Global Holding.
Cosmos Global Holding owns and manages several companies in different industries, including oil and gas, financial services, health care, real estate and technology. Currently, the company has approximately 40 different brands around the world, with a strong presence in Mexico and Latin America. Cosmos embraces digital business models and has a goal to position itself as a leader in the global market. “In this era of constant change, the digital world demands increasingly sophisticated solutions, and innovation is now the bread and butter for the real estate industry,” says Rosete.
Cosmos is active in the Latin American real estate industry through its company Cosmica Inmuebles, which has a presence in Mexico City, Estado de Mexico, Baja California Sur and Quintana Roo. The mission of Cosmica Inmuebles is to provide the best advisory services which include buying, renting, selling, and investing in properties that utilize solutions both offline and online. “Proptech is becoming an increasingly interesting part of real estate best practices,” says Rosete.
Latin American Market Shows Strength in Proptech
The boom of proptech in Latin America is increasingly evident. As of 2021, there were more than 400 proptech companies in Latin America, most of them focused on the business-to-business sector. For example, the office sector has a wide range of applications, from digitally facilitating unique workplace experiences to offering advanced data and analytics for real-time feedback. Additionally, there are a variety of proptech solutions, that are now available to help property teams purchase, sell, and manage their assets.
However, as in any boom, winners and losers will emerge. According to a recent Deloitte CRE Outlook Survey, 56% of CRE respondents claim the pandemic exposed shortcomings in their organizations’ digital capabilities. In addition, only 40% of respondents said their companies have a defined digital transformation roadmap.
“This technological segment will continue to grow, but for digital agents, it will be necessary to work together with real estate agents. By creating sustainable proptech solutions, requires a business that can deliver profits and not just high valuations. Another option for real estate agents is to develop technology capabilities in-house, but this path will require patience and funds,” says Rosete.
Opportunities ahead for the Dominican market
Cosmos is preparing to enter the Dominican market via Latam Real Estate. With interests also in Mexico, Colombia and the United States, Rosete believes that the time has come to bet on the opportunities offered by the Dominican Republic’s market.
Rosete praises the stability and efforts of the President of the Dominican Republic, Luis Abinader, and his willingness to help and encourage foreign private initiative that wishes to invest in the country. “The first thing we analyze is that the country has a stable government with the purpose of helping the private initiative to invest. “We like the government of President Abinader, also, this country has a nascent breadth of tech professionals that can help us achieve projects related to innovation and proptech,” says Rosete.
One of the most advanced projects for the Dominican Republic, according to Rosete, is the development of housing, commercial and office real estate under a single concept. The development of urban complexes in beach areas that bring together the three areas in the same place is something that Cosmos has already achieved in Mexico, with very good reception in the market. Rosete plans to focus on opportunities in the southern Dominican Republic, where the Pedernales Tourism Development Project will be located and where public-private collaboration will be fundamental. This is where Cosmos wants to help the Caribbean country grow in terms of tourism and digital innovation.
“I have no doubt that the next unicorn in proptech could come from Latin America. The market is hungry for innovation and the relentless waves of digital nomads and tourists will help make these countries a global powerhouse in innovation,” says Rosete.
Who is German Rosete Llergo?
German Rosete is an entrepreneur and investor with a passion for innovation. He is the CEO of Oleum Energy, a company that celebrates a decade of existence this year. Rosete currently has projects in real estate, digital innovation and education.