PUBLISHER: The Business Research Company | PRODUCT CODE: 1785573
PUBLISHER: The Business Research Company | PRODUCT CODE: 1785573
Property technology (prop-tech) refers to using technology to innovate, streamline, and enhance various aspects of the real estate industry. This includes software, hardware, and platforms that digitize and optimize property management, development, sales, leasing, and investment processes. PropTech solutions leverage technologies such as artificial intelligence, big data analytics, the internet of things (IoT), and blockchain to improve efficiency, transparency, and user experience in real estate transactions and operations.
The main components of proptech are solution and services. PropTech solutions refer to the use of technology to improve and streamline various aspects of the real estate industry, including buying, selling, renting, investing, designing, constructing, and managing properties. They are deployed based on on-premise and cloud learning modes for various properties include residential property and commercial property by housing associations, property managers agents, property investors, and other end users.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the resulting trade tensions in spring 2025 are having a considerable impact on the construction sector, particularly in the areas of material procurement and overall project expenses. Increased duties on imported steel, aluminum, lumber, and machinery have raised costs for builders, contractors, and infrastructure developers, resulting in higher project bids and delays in execution. Manufacturers of construction equipment are also facing challenges, as tariffs on key components and raw materials are driving up production costs and compressing profit margins. Furthermore, retaliatory tariffs from major export markets have reduced demand for U.S.-made construction equipment and materials, putting additional pressure on revenue streams. In response, the sector is increasingly focusing on local sourcing, adopting modular construction methods, and diversifying supply chains to better manage rising costs and maintain project feasibility amid ongoing trade instability.
The main components of proptech are solution and services. PropTech solutions refer to the use of technology to improve and streamline various aspects of the real estate industry, including buying, selling, renting, investing, designing, constructing, and managing properties. They are deployed based on on-premise and cloud learning modes for various properties include residential property and commercial property by housing associations, property managers agents, property investors, and other end users.
The property technology (proptech) market size has grown rapidly in recent years. It will grow from $36.08 billion in 2024 to $41.26 billion in 2025 at a compound annual growth rate (CAGR) of 14.4%. The growth in the historic period can be attributed to growing urbanization, smart home automation, e-signature solutions for contracts, AI-driven property valuation, and crowd-funded real estate investments.
The property technology (proptech) market size is expected to see rapid growth in the next few years. It will grow to $72.03 billion in 2029 at a compound annual growth rate (CAGR) of 14.9%. The growth in the forecast period can be attributed to AI-driven property valuation, highly use of blockchain for secure transactions, mobile applications for property transactions, cloud-based property management systems, drone technology in property surveying. Major trends in the forecast period include rise of artificial intelligence (AI) and machine learning, blockchain for security and transparency, smart building technologies, data security and privacy measures, flexible and remote work solutions.
The forecast of 14.9% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. This could substantially alter US real estate innovation by limiting advanced internet of things (IoT) devices and artificial intelligence (AI) analytics tools, sourced from technology manufacturers in China and Finland, might slow digital transformation timelines. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The growing demand for property management services is expected to fuel the expansion of the property technology (PropTech) market. Property management services involve overseeing the administration, operation, and maintenance of real estate properties on behalf of owners, which includes tenant management, maintenance tasks, and rent collection. The rising demand for these services can be linked to factors such as increased rental property demand, growing real estate investments, and the trend toward outsourcing property management to professionals for improved efficiency and regulatory compliance. PropTech supports property management services by optimizing operations, enhancing tenant satisfaction, and enabling data-driven management practices, making outsourcing a more attractive option for property owners. For example, in May 2024, Scanlans Property Management LLP, a UK-based property management company, reported that the UK had 22,751 property management businesses in 2023, reflecting a 3.3% increase compared to 2022. Thus, the increasing demand for property management services is driving growth in the PropTech market.
Major companies operating in the property technology (Proptech) market are focusing on technological strides, such as the PropTech platform, to sustain their position in the market. The PropTech platform refers to the intersection of the real estate industry with technology and software. For instance, in September 2022, HDFC Capital and Invest India, an India-based company, jointly introduced the PropTech platform called HDFC Real Estate Tech Program, which aims to foster collaborations between technology companies and the real estate sector. The platform's main objective is to identify, acknowledge, and honor groundbreaking innovations in the fields of construction tech, sales tech, fintech, and sustainability tech within the real estate industry.
In October 2022, MRI Software, a US-based company that provides real estate and investment management software to real estate owners, investors, and operators, acquired PropTech Group Limited for $93.4 million. This acquisition is expected to strengthen MRI Software's position in the market and enhance its suite of solutions for residential and commercial real estate. PropTech Group Limited is a US-based company specializing in real estate software that offers products such as VaultRE, VaultEA, EagleCRM, Real Estate Investor, Website Blue, Designly, and RentFind Inspector.
Major companies operating in the property technology (Proptech) market are Opendoor Technologies Inc., Airbnb Inc., WeWork Companies Inc., Stitch AI Inc., Compass Inc., EquipmentShare.com Inc., HomeLight Inc., Pacaso Inc., Kin Insurance Inc., VTS Inc., Hometap Equity Partners LLC, Roofr Inc., Homeday GmbH, Engrain LLC, Landbay Partners Limited, Bilt Rewards Inc., Orchard Platform Corporation, flatfair Limited, Plentific Limited, Lavanda Ventures Ltd., HomeViews Limited, Ideal Flatmate Ltd, Ohmyhome Pte. Ltd., Acaboom Limited
North America was the largest region in the property technology (PropTech) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the property technology (proptech) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the property technology (proptech) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The property technology (PropTech) market includes revenues earned by entities by providing services such as property listing and search platforms, property management software, smart home technologies, crowdfunding and real estate investment platforms, blockchain and smart contracts, facilities management solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The property technology (PropTech) market also included sales of smart thermostats, smart locks, smart lightbulbs, smart speakers and voice assistants, security cameras, and sensors. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Property Technology (Proptech) Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on property technology (proptech) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for property technology (proptech) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The property technology (proptech) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.