PropTech Market Outlook: Digital Transformation in Real Estate and Growth Opportunities

According to IMARC Group's latest research publication, The global proptech market size reached USD 35.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 114.8 Billion by 2033, exhibiting a growth rate (CAGR) of 13.25% during 2025-2033.

How AI is Reshaping the Future of PropTech Market

• AI-Driven Property Valuation and Market Intelligence: Artificial intelligence is transforming property valuation by analyzing large datasets including historical prices, location trends, infrastructure development, and buyer behavior. Machine learning models provide more accurate and real-time property pricing insights, reducing manual assessment errors. According to IMARC Group, “the proptech market is witnessing strong growth driven by digital transformation in the real estate sector,” with AI-powered analytics improving transparency and investment decision-making.
• Smart Property Management and Automation: AI enables automated property management through predictive maintenance, tenant screening, and smart building systems. Intelligent platforms monitor energy use, detect equipment faults, and optimize operational efficiency in residential and commercial properties. As highlighted by IMARC Group, “increasing adoption of cloud-based and AI-integrated solutions is accelerating proptech adoption globally,” enhancing cost efficiency, sustainability, and overall asset performance.
• Personalized Customer Experience and Virtual Transactions: AI-powered chatbots, virtual assistants, and recommendation engines are enhancing the property search and transaction process. Buyers receive customized listings based on preferences, budget, and behavior patterns. AI also supports virtual tours and digital documentation verification, reducing transaction timelines. IMARC Group notes that “rising demand for seamless digital real estate services is driving innovation,” positioning AI as a core technology shaping the future of the proptech market.

Explore Updated 2026 Market Trends & Analysis

PropTech Industry Overview:

The PropTech sector is experiencing rapid transformation as digital-native companies integrate AI, blockchain, and IoT into traditional real estate workflows. Venture capital firms injected USD 16.7 billion into PropTech companies globally, representing 68% growth as investors prioritize platforms delivering operational efficiencies and measurable returns. Government smart city initiatives across Asia Pacific are accelerating adoption, while sustainable building technologies address ESG requirements in Europe and North America, creating standardized digital infrastructure for property transactions, management, and investment analysis.

PropTech Market Trends & Drivers:

The convergence of artificial intelligence with real estate operations is fundamentally reshaping property management workflows and investment strategies. AI-powered PropTech startups captured USD 3.2 billion in venture funding, with platforms automating critical leasing operations, property marketing, and maintenance coordination. Companies implementing AI-driven analytics improved property valuation accuracy to within 3% margins, while chatbots like Barry Plant's "Grace" handle tenant inquiries and listing descriptions continuously. The technology automates up to 37% of real estate operations, potentially generating USD 34 billion in efficiency gains, while generative AI alone promises USD 110-180 billion in additional industry value through enhanced asset management and predictive maintenance capabilities.

Digital transformation is accelerating across all real estate segments as buyers, renters, and investors demand seamless online experiences replacing traditional manual processes. Over 10,000 PropTech startups operate globally, with 60% concentrated in the United States and Europe, delivering mobile-first platforms for instant property comparisons, digital lease signing, and automated mortgage approvals. Virtual reality tours combined with AI enable buyers to explore properties remotely with unprecedented detail, while blockchain-based smart contracts ensure transparent, secure transactions. MagicDoor raised USD 2 million for its AI-native property management software, while platforms like Zillow and Redfin transformed property discovery through real-time listing data, market analytics, and personalized recommendations that eliminate weeks of manual searching and paperwork delays.

Sustainability requirements and ESG compliance mandates are driving massive PropTech investment in green building technologies and energy management solutions. Smart IoT sensors monitor building performance metrics continuously, optimizing energy consumption, water usage, and carbon emissions in real-time while providing transparent reporting for regulatory compliance. The Earth Fund partnered with Gruhas to establish a Rs 200 crore investment fund specifically targeting sustainability-focused PropTech startups across 10-15 companies. Buildings implementing AI-powered energy systems achieve 30% carbon footprint reductions while meeting increasingly stringent environmental regulations. Corporate occupiers report that 90.1% plan to manage real estate functions using AI-supported systems, reflecting the industry-wide shift toward data-driven sustainability practices that reduce operational costs and appeal to environmentally conscious tenants and investors.

Leading Companies Operating in the Global PropTech Industry:

• Ascendix Tech
• Guesty Inc.
• ManageCasa Inc.
• PropertyGuru Pte Ltd
• PropTech Group (MRI Software)
• Vergesense Inc
• Yanolja Co. Ltd
• Zumper Inc.

PropTech Market Report Segmentation:

By Solution:

• Software
• Services

Software accounts for the majority of market share, as it streamlines real estate processes and improves efficiency in property management, transactions, and data analysis.

By Deployment Mode:

• Cloud-based
• On premises

On-premises deployment holds the largest segment, driven by the need for enhanced data control, security, and customization in real estate operations.

By Property Type:

• Residential
• Commercial

Residential represents the leading market segment, driven by rising demand for digital tools that streamline property buying, selling, and renting processes.

By End Use:

• Housing Associations
• Property Managers/Agents
• Property Investors
• Others

Housing associations exhibit clear dominance in the market, driven by their need to manage large portfolios of residential properties efficiently.

Regional Insights:

• North America (United States, Canada)
• Europe (Germany, France, United Kingdom, Italy, Spain, Others)
• Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, Others)
• Latin America (Brazil, Mexico, Others)
• Middle East and Africa

Asia Pacific represents the largest region, owing to rapid urbanization, government support for smart city programs, and widespread digital adoption across real estate sectors.

Recent News and Developments in PropTech Market

• September 2025: Holo, a UAE-based digital mortgage platform, secured USD 22 million in Series A funding led by Impact46, with backing from Mubadala and additional investors. The capital will enhance Holo's expansion throughout the GCC region, streamlining digital mortgage processes and improving accessibility to property financing across Gulf markets.
• August 2025: EliseAI raised USD 250 million in Series E funding at a USD 2.25 billion valuation, with Andreessen Horowitz leading the round. The New York-based company, which automates healthcare and housing systems through AI-guided tours, lease audits, and maintenance applications, has surpassed USD 100 million in annual recurring revenue while delivering operational efficiencies for property managers.
• May 2025: Alt DRX, a tokenized marketplace for digital real estate, secured USD 2.7 million in Pre-Series A funding. Investors including Qatar Development Bank, Times of India Brand Capital, Hindustan Media Ventures, and Zee Group participated in the round, supporting Alt DRX's mission to democratize real estate investment through blockchain-enabled fractional ownership platforms.
• May 2024: Guesty Inc. acquired Rentals United, a Barcelona-based provider of cloud platforms for distributing properties across multiple listing sites. The acquisition combines two software providers in the short-term rental space, creating a unified offering that opens new revenue opportunities for property managers through enhanced distribution capabilities and integrated booking systems.
• March 2024: MagicDoor launched the industry's first AI-native property management software platform, securing over USD 2 million in pre-seed financing from Shadow Ventures and strategic angels. The funding facilitates development of groundbreaking AI-driven features and accelerates sales, marketing, and onboarding initiatives across the rapidly growing PropTech sector.

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