Proptech Market - Forecasts from 2024 to 2029

The proptech market was estimated at US$30.214 billion in 2022, growing at a CAGR of 10.63%, reaching a market size of US$85.201 billion by 2029.

The proptech market is projected to show steady growth during the forecast period. Proptech is a type of technology implemented in the real estate sector. The technology is incorporated in various fields like research, development, buying, selling, renting, and managing real estate properties. Furthermore, proptech has advanced features that allow individuals to engage with buildings. The technology serves various people involved in property sales, rent, and buying including the investors.

The extended benefits of proptech, are linked with the growing demand for technological advancements of real estate experts, which drives the proptech gradual growth. Growing population and urbanization, the evolution of digital technology, and growing consumer demand are driving the proptech market growth.

PropTech Market Drivers

Growing population and urbanization propels prop-tech market growth.

The gradual growth of urban areas and increased population in urban areas drives the increased requirement for property management solutions. Proptech is an innovative approach to addressing the demand. The migration towards city areas for living is necessary, but to adopt such a population in large cities needs to be minimized. The Proptech tool helps to deal with the problem by providing open space usage. Furthermore, the people who have tech knowledge opt for convenient and endless access to services. Proptech enables all these problems under one roof by providing online applications, request maintenance, and better communication, which will be a positive benefit to both property managers and lenders.

For instance, in December 2022, the Census Bureau published an article stating that there is a significant growth in the urban city population which increased to 6.4% from 2010 to 2020.

Evolution of digital technology drives prop-tech market growth

The real estate sector is way behind in implementing technology in the field and is currently seeing a digital evolution. Proptech is gaining attention these days by providing various offers to enhance the workspace and work locations in the field of real estate. The tool enables the task to be done automatically without following traditional methods and avoiding paperwork works, which enhances the efficiency of workers in the organization. Some of the top features enable the proptech tool to be considered by property managers to manage rental applications, lease agreements, etc.

The proptech has an advanced feature that consists of a virtual site view from distant places, enabling the lenders to overview, and for property managers, it’s a convenient and flexible method to sell the property virtually. Moreover market has seen an upsurge in advertising campaigns that specifically target single customers by providing clear insight about the product. The move towards digitally organized platforms is not only about convenience. It helps the real estate business to focus on what people really need by enhancing relationships till the delivery of the product to the tenant, buyer, and seller.

Growing consumer demand enhances prop-tech market growth.

Proptech not only works as a back-end operator but is also a part of overall performance in the shift towards digitally applicable applications which is enhancing the interface by the customers. The advancement in digital technology has made customers who are tech-savvy in technological platforms anticipate a convenient and user-based interface when it comes to individual living spaces. The tenants are using these digital applications to pay rent online, submit maintenance requests, and receive notifications of alerts from the landlords.

Proptech tool is well versed in technology which coordinates well between residents and property managers by maintaining the proper communication with transparency. Property owners will also get an advantage from online platforms that compress the workload, such as lease agreements, payment transactions, and real-time property data. These benefits from proptech technology enhanced two-way communication which will be a benefit for the parties involved in the conversation and eventually builds a greater experience for both property owners and tenants.

PropTech Market - Geographical Outlooks

North America is expected to grow significantly.

North America is anticipated to account for a significant share of the proptech market dueto a variety of factors. There are favorable amounts of investments and funding relevant to the real estate field in the region where digital platforms are eventually replacing traditional methods with proptech technology solutions, which provide comprehensive and enhanced efficacy by automating regular tasks. Furthermore, in regions like America and Canada, the population is well-versed in technology, and they are the initial adopters of technical tools, where people expect innovative tools to enhance their operations.

For instance, UBS reality investors opt for iApartments in January 2024 for the company's advanced innovative asset-based technology. Eventually, iApartment podium improve asset operations, and boost tenant experiences.

For instance, Renx, a renowned real estate exchange platform, published an article in November 2023 stating that the proptech sector saw a significant upsurge in 2022. Approximately 50 startup companies entered into the proptech field, and $1.5 billion in funding was received in 2022.

PropTech Market Restraints

Considerable Introductory Investment hinders the proptech market growth.

Administering the Proptech tool is often required in an initial investment in technology, infrastructure, and staff training. This financial allotment can pose a challenge for smaller enterprises or traditional real estate firms.

Primary developments curb the proptech market growth.

The proptech sector is still in the development stage, and the lack of standard data formats and protocols results in harmonious difficulties compared to other platforms.

PropTech Market Key Industry Developments

• September 2023:WiseX and Integrow partnered to launch the Indian-origin real estate portfolio Management Service (PMS). The collaboration enhances investors to make an entry into the investment portfolio related to real estate with suggested equities and debts
• April 2023:Marvion introduced a change in the concept of asset ownership by offering digital ownership tokens. These tokens are proof of the assets the individual owns in the field of real estate

PropTech Market Major Players and Products

• Lender Hub: The product offered by CoreLogic's lender hub, the platform designed for mortgage and valuation purposes for lenders and surveyors. The platform enables the digital form of actions like communication, task automation, and updates on asset valuation. The tool is beneficiary for the stakeholders in the process of mortgage, and this tool reduces the risk probability
• Estate Master: The product offered by the company called ARGUS is a software solution that is particularly designed for commercial real estate development. Using this tool, one can access the ongoing project, maintain regular cashflow, and create a report on every step of development done in the construction.

PropTech market is segmented and analyzed as follows:

By Deployment

• On-premise
• Cloud

By Solution

• Service
• Software

By Property Type

• Commercial
• Residential
• Industrial

By End-users

• Housing Associations
• Property Investor
• Property Manager / Agent
• Others

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• Japan
• China
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others