PropTech Market Size, Share & Industry Analysis, By Solution (Integrated Platform/Software and Standalone Software), By Deployment (Cloud and On-premise), By Property Type (Residential and Commercial), By End-user (Real Estate Agents, Housing Associations, Property Investors, and Others), and Regional Forecast, 2024-2032

The global PropTech market size was valued at USD 33.57 billion in 2023 and is projected to grow from USD 36.55 billion in 2024 to USD 89.93 billion by 2032, exhibiting a CAGR of 11.9% during the forecast period (2024-2032). PropTech refers to the unification of real estate, platform economics, and digital technologies. These technologies comprise of different software applications (apps), intricate data-analysis algorithms, or websites that smoohens the affluence of various transactions in the real estate sector. These solutions also contribute to the growth of an organization’s sustainability, better investor returns, and enhanced client experience. 

The advancement in technologies such as artificial intelligence, machine learning, and digitization of property data assets are revolutionizing the real estate sector. Hence, several enterprises and organizations are investing in the market for better returns in the real estate industry. For instance, in February 2024, SPYRE PROPTECH VENTURE fund launched prop tech sectoral fund of USD 48.3 million in the first phase. The fund is aimed to make investments in 30 early and growth stage companies.

Moreover, the widespread COVID-19 pandemic affected the real estate sector, decreasing the demand for leasing, new buys, rentals, and others. But at the same time, the requirement for residential accommodation increased as individuals were looking for more space to study and work. Thus, the COVID-19 pandemic expedited the support and need for such solutions with an increase in funding and investment for continued development and the new normal of the future.

PropTech Market Trends

Implementation of Advanced Technologies Such as AR/VR, and 3D, and Others to Fuel the Market Growth

The market is evolving rapidly with progressions in the high-tech landscape and varying customer requirements. The applications of virtual reality to generate a three-dimensional environment or image enhance the user experience. These platforms enable real estate enterprises to provide virtual tours of properties, handle their properties online, and even make use of drones to review their properties. It is facilitating the real estate sector to become more accessible, efficient, and transparent. With virtual tours of properties, real estate organizations and enterprises could ensure that buyers perceive closely what they are paying for. The adoption of technology in these solutions helps companies develop trust among sellers and buyers and also streamlines the buying process with better transparency. Hence, various key players are introducing new advancements in their solutions with new emerging technologies such as 3D, AR, and VR, is enhancing the global PropTech market growth. For instance, in February 2024, Blue Wall Technology expanded into international markets by launching Julius. It is an AI-powered property marketing and sales management system that offers a set of modules including CRM, dynamic inventory manager, gen-AI marketing, and real-time budgeting.

Such modernizations and technological advancements for enhanced customer experience drive the market share globally.

PropTech Market Growth Factors

Increasing Use of Cloud-based PropTech Solutions to Upsurge the Market Progress

Cloud-based-PropTech industry solutions are becoming increasingly popular in the real estate sector due to their easy access to data. It allows property managers to stay on top of the latest data solutions and helps to avoid difficulties with leases, such as missed rent checks or late payments. The cloud-based solutions centralize educational content, property data listings, and the recent trends, insights, and developments in the world of data-driving real estate. Cloud computing in real estate helps clients access their data from anywhere with the servers located in the cloud. In addition, it enables them to back up their files and share the information with their co-workers.

Thus, these cloud-based solutions provide a 360-degree view to the property viewers while cutting down on cost, time, and effort by smoothening the real estate procedure logistically. With such benefits, various enterprises and organizations are investing in cloud-based property technology solutions. For instance, in July 2023, MRI Software expanded its real estate solutions offerings to the Canadian market by launching a cloud instance in Canada. The launch would enable Canada MRI clients easy access to MRI solutions, ensuring compliance with security and privacy regulations.

RESTRAINING FACTORS

Compliance and Regulatory Difficulties in New Technologies May Hamper Market Expansion

The rising usage of technology can outpace present regulations, generating hurdles and uncertainty for implementation. These compliance and regulatory aspects can lead to significant roadblocks for property technology in the real estate sector. The lending and real estate businesses are administered by various different laws. To operate ethically and legally, digital platforms need to traverse an intricate regulatory landscape.

Compliance with data safety and confidentiality laws becomes critical with the collection and handling of crucial information, which is an integral part of real estate operations. Moreover, permitting requirements and navigating licensing for emergent technologies can be difficult for new users. SMEs and new adopters of these solutions can face various difficulties due to such factors.

These difficulties can slow down the adoption of such solutions and eventually affect market expansion.

PropTech Market Segmentation Analysis

By Solution Analysis

Comprehensive Solutions Offered by Integrated Platform/Software to Drive the Segment Growth

Based on solution, the market is bifurcated into integrated platform/software and standalone software.

The integrated platform/software segment accounted for the maximum share in the market in 2023. The integrated platform/software provides users with various tools such as renting, buying, listing, finding real estate agents, advertising, and many other features in a single platform or software. It helps enterprises and organizations to increase business efficiency, better customer experience, and better financing solutions. Thus, it offers users a comprehensive solution as per their requirements.

The standalone software segment is predicted to grow with the highest compound annual growth rate during the forecasted period. Its ability to provide detailed features and tools for the specific requirements of the user helps businesses to provide enhanced user experience. Hence, various property investors and clients prefer to use standalone software, which is increasing the demand for property technology software in the market.

By Deployment Analysis

Customization Offered by On-premise Deployment to Foster Segment Growth

By deployment, the market is categorized into cloud and on-premise.

The on-premise segment held the maximum share in 2023. It gives the user complete control over the solution and also provides custom-made data documents and data fields as per their requirements. One of the major benefits of this deployment is the prospect of customization to align software features and service segments with the firm’s needs.

The cloud segment is predicted to have the maximum CAGR during the forecast period. The implementation of cloud computing in real estate is one of the significant developments in the sector. Cloud-based platforms allow users to track crucial dates, renewals, contracts, payments, and other preferred attributes. It also helps to generate alerts and automate authorization actions. Such automation aids the increasing demand for cloud-based solutions in the market.

By Property Type Analysis

Growing Adoption of Emerging Technologies for Automation to Fuel Commercial Segment Growth

PropTech solutions are prominently used in the residential sector and commercial sectors.

The commercial segment held the largest share in 2023. Property technology solutions in commercial real estate provide financing and evaluation tools, property development tools, space and asset management tools, and many others. These tools are designed as per the business requirements of organizations and enterprises. The rising adoption of emerging technologies for automation propels the commercial segment growth in the market. For instance, in January 2024, Movingdoors, a tech-enabled serviced apartments’ provider, completed its seed funding round by raising a sum of USD 1.3 million, with contributions from Genesis Venture, Uni.fund, and Venteri Capital.

The residential segment is expected to account for the maximum CAGR throughout the forecast period. The residential segment is about the digital products advanced by real estate tech firms to simplify the way people manage, own, or rent houses and apartments, for example, short-term rental platforms, buying and selling of single-family properties, and others. Investment in residential property gives more returns and does not need a substantial starting capital.

By End-user Analysis

Growing Need for Townships to Foster Housing Associations Segment Growth

The various end-users of property technology solutions include real estate agents, housing associations, property investors, and others.

The housing associations segment held the maximum share in terms of revenue in 2023. The increasing requirement for townships and apartment societies aids the growth of the housing associations segment. In addition, the ability to manage rentals, mortgage, track payments, and other activities of these solutions help housing associations to carry out their operations efficiently, thereby increasing their revenue share in the market. 

As investments in real estate across various regions are on the rise, the increasing usage of these solutions by property investors is anticipated to grow with a highest CAGR than other end-users during the forecasted period. In addition, the rising number of foreign investment in the developing regions drives the segment expansion.

REGIONAL INSIGHTS

Geographically, the market is studied across North America, South America, Europe, the Middle East & Africa, and the Asia Pacific.

North America is expected to hold the largest market share during the forecasted period. The U.S. has the maximum number of investors in the market in the region. The region also has the most number of PropTech companies and startups, aiding the regional growth. A robust availability of knowledgeable labor, prospective investors, and stable markets with resilient guarantees of returns contribute to the progress of the market in the region. Hence, various enterprises are expanding their offerings with new emerging technologies in the region. For instance, in February 2024, Tampa-based proptech startup iApartments collaborated with UBS Realty Investors to expand the company's tech installation in possessions across the U.S.

As per the Fortune Business Insights Analysis, the Asia Pacific is anticipated to grow at the highest CAGR during the forecast period. Property technology startups are positively impacting the largest and most dynamic real estate markets across the region, right from the growing economies of India and China to other countries such as South Korea, Japan, Thailand, Singapore, and others. Moreover, property technology continues to shape the most valued real estate sector with increasing investments in the region. For instance,

• November 2022: HDFC Capital, in collaboration with Startup India, introduced a new platform, Real Estate Tech Innovators, to identify, award, and recognize inventions in fintech, salestech, construction tech, and sustainability tech areas. The platform plans to invest in more than 15 Indian property technology startups.

Property technology SMEs and startups are renovating the selling, buying, and renting of real estate in the European region. In addition, investment in various countries such as the U.K., Germany, Spain, and many others is on the rise, thereby driving the market progress in these countries. Overall, enterprises are increasing their funding, enhancing their marketing, and progressing their product contributions. Hence, the region has shown significant growth in the global PropTech market share. For instance,

• According to industry experts, for the residential property lifecycle, most of the property technology solutions, approximately 22.02% in the U.K., are catering for buying, and 26.97% for present property management solutions.

The Middle East & Africa are anticipated to showcase adequate progress during the forecast period. The real estate sector in Dubai, South Africa, and Turkey is set to outperform that of other countries across the globe, sustained by stable development in occupancy and property rates. These regions have created various opportunities for such solutions in the market. In addition, the adoption of advanced technologies drives the market progress in the region. For instance, in February 2024, Rize, a Saudi Arabia-based proptech startup, secured a seed funding amount of USD 2.9 million to boost its expansion plans.

In South America, the adoption of digital technologies in the real estate sector is growing considerably. The growing number of real-estate management-focused companies in Brazil is driving the market expansion in the region. In addition, various collaborations and acquisitions by key players have helped in the expansion of these solutions in the region.

List of Key Companies in PropTech Market

Increasing Focus of the Key Market Players on Global Expansion to Strengthen Their Market Position

The prominent market players are keen on incorporating new technologies within real estate across residential and commercial sectors. Securing funds to upgrade solutions with advanced mechanisms is one of the substantial approaches players adopt. Similarly, prominent players strategically cooperate and form partnerships worldwide for global expansion.

List of Key Companies Profiled:

• Altus Group (Canada)


• Guesty Inc. (Israel)


• Qualia Labs, Inc. (U.S.)


• Ascendix Tech (U.S.)


• Zillow (U.S.)


• Zumper Inc. (U.S.)


• View The Space (U.S.)


• CoreLogic (U.S.)


• Reonomy (U.S.)


• MRI Software LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: MoxiWorks declared that HomeStack, a mobile app builder, joined MoxiCloud open network partner program. MoxiWorks’ clients can incorporate HomeStack into their MoxiWorks product group with this addition.


• February 2024: Lithuanian Proptech Association organized a Built Environment Decarbonisation Bootcamp to aid global Proptech startups and real estate companies in the Baltics to launch their products in the European market.


• February 2024: Fashinza Cofounder, Jamil Ahmad, launched Marrfa, a SaaS startup offering solutions to confront the trust deficit in the real estate market. It will originally operate across India and the UAE.


• July 2023: MRI Software acquired Loci Solutions Group Pty Limited, a property technology consulting and subcontracted management firm based in Australia. The acquisition helps MRI Software to strengthen execution expertise and enhance outsourced facilities to PropTech offerings in the Asia Pacific’s commercial sector. 


• June 2023: VTS announced the expansion of its collaboration with MRI Software to provide exceptional insights for real estate in the commercial sector. The partnership allows two-way incorporation between MRI Commercial Management and VTS Lease to deliver a 360-degree movement of financial data and portfolio between both solutions.

REPORT COVERAGE

The report offers an all-inclusive analysis of the market and highlights important aspects such as product kinds, top companies, and noticeable solution applications. Besides this, it offers insights into market developments and highlights essential industry advancements. In addition to the aspects stated above, the report combines several dynamics that have contributed to the market progress in recent years.

Report Scope & Segmentation