The term "property technology," or "Proptech," as it is more commonly abbreviated, refers to the technological tools utilized by the real estate indsustry to improve the buying, selling, researching, and managing of real estate. Current PropTech market trends may simply spread their wings in different directions to improve the user experience.
In the post-Covid digital world, real estate brokers have the ability to use technology to conduct remote transactions and digital contracting, which results in a purchasing process that is both quicker and simpler. The community of NRIs has reaped the greatest benefits from such newly developed technologies. Tools that utilize contactless solutions provided by proptech, such as fingerprint and facial recognition, are gaining popularity.
North America will dominate the global Property Technology Market
It is anticipated that the region of North America will take the lead in the market for property technology. This is likely to be the case due to the presence of multiple major PropTech market players in the region and the adoption of digital technology.
Asia-Pacific Region will see a stable growth rate in the period of interest
A growing number of small and medium-sized businesses in Asia Pacific and Europe are expected to increasingly adopt cloud technologies over the course of the period in question, which is expected to drive demand for PropTech. In China, Japan, India, and Germany, the demand for PropTech is growing as a direct result of the increasing popularity of the bring your own device movement (BYOD).
The Real-Estate segment will dominate the global Property Technology Market
When it comes to making decisions regarding investments and day-to-day operations, real estate companies are becoming more and more data-driven in their approach. They do this by utilizing data obtained from artificial intelligence and other tools. The process of collecting data, storing it, and using analytical tools to make decisions is becoming increasingly refined at businesses. PropTech offers tools, such as sensors, that enable users to collect and utilize data in order to make informed decisions.
During the period from 2022 to 2029, the PropTech market is projected to expand at a robust CAGR of 16.8%. The market is anticipated to increase from $18.23 billion in 2022 to $52.38 billion in 2029.
The increased demand for PropTech can be attributed to the fact that it brings down operating costs and assists organizations in saving money. Customers are offered digital or virtual services, and agents are free to work from anywhere they have an internet connection. Because of this, both profits and productivity have increased. PropTech is helping to reduce transactional costs and is improving consumer convenience, putting an emphasis on the fact that the customer is king.
Because of the ease of use that PropTech has brought to the real estate industry, it has seen widespread adoption, and it is anticipated that it will continue to be at the forefront of property management in the post-Covid era. PropTech companies have made full use of these advancements by providing their customers with an easy way to search for properties. This has allowed the companies to attract and retain more customers.
Researching and comparing available commercial real estate options can be time-consuming, but commercial property investment for profit is becoming an increasingly common way to make money. PropTech allows all parties involved in a project, from the people who first conceived of the idea to the people who actually built it, to communicate with one another and share information on a centralized, straightforward platform. It is no longer necessary to hold meetings in person, and effective team collaboration ensures that construction projects are completed on time and according to specifications. PropTech is in high demand among real estate agents and investors because it uses specific parameters, such as location, property qualities, and price tag, to weed out unsuitable results and only present opportunities that are most likely to satisfy their requirements. Airbnb is a fantastic illustration of how PropTech can be utilized in this manner. According to the market analysis of PropTech, it helps in the remarkable collection and interpretation of data. The increasing use of PropTech is cause for optimism because it simplifies the process of monitoring investors.
Additionally, market statistics have improved in the midst of these digital transformations, which is a positive development. The land is purchased by developers with the intention of redeveloping and building on the land. The value of land can be increased by startups, which can then be sold at a higher price. This generates revenue for the companies. The expansion of the PropTech market is a possibility if developers continue to monitor their projects. It makes it possible for partners to collaborate on the project in real-time, share it, and make changes to it without having to meet each other physically.
In the market for Property Technology around the world, some of the most successful companies include Airbnb, Compass, Fangdd, Ziroom, Locale, OYO, Lianjia, Houzz, WeCompany, and Ucommune.
- The industry giant in real estate has just released an updated version of Zillow 3D, which includes the addition of machine learning capabilities to interactive floor plans.
- The rise of special purpose acquisition companies (SPACs) and the frenzy of mergers and acquisitions activity that has been witnessed thus far in 2021 are both factors that are contributing to the digital revolution taking place in the real estate industry.
- The HqO acquisition of the portfolio company Office App owned by Pi Labs. Created a truly international offering in 2021 by combining the primary office experience platform based in the United States with the preeminent office experience platform based in Europe.
Property Technology Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2029||$52.38 billion.|
|Growth Rate||CAGR of 16.8% during 2021-2029|
|Segment Covered||By Type, By End- User, By Application, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East and Africa|
|Key Players Profiled||Airbnb, Compass, Fangdd, Ziroom, Locale, OYO, Lianjia, Houzz, WeCompany, and Ucommune|
Key segments in ‘Global Property Technology Market’
By Type, 2019-2029 (USD Billion)
- Property Technology Services
- Property Technology Solutions
By End-User, 2019-2029 (USD Billion)
- Commercial Property
- Personal Property
By Application, 2019-2029 (USD Billion)
By region, 2019-2029 (USD Billion)
- North America
- The United States of America
- The United Kingdom
- South Korea
- South America