The global PropTech market size was valued at USD 36.55 billion in 2024. The market is projected to grow from USD 40.19 billion in 2025 to USD 88.37 billion by 2032, exhibiting a CAGR of 11.9% during the forecast period. North America dominated the global market with a share of 38.03% in 2024.
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.
Source: https://www.fortunebusinessinsights.com/proptech-market-108634
