Executive Summary

PropTech isn’t just an addition to the real estate industry—it’s a catalyst transforming every corner of the sector, from construction sites to investment platforms. With real estate valued globally at over $634.90 trillion USD and the European real estate market alone projected to reach $174.5 trillion USD by the end of 2024, the stakes are immense.

PropTech’s influence extends across the entire property lifecycle, making processes more efficient, secure, and data driven. Take the 13.78% increase in PropTech investments this past fiscal year, for example; it not only signals growth but highlights a sector advancing at a pace that’s outstripping traditional growth rates in the American and Eurozone economies.

Further, we see these impacts in the way technology is shaping property management—a category that has generated $44.7 billion in revenue from $40 billion in cumulative investment. These figures underscore how management technologies, from tenant tools to data-driven decision platforms, are adding direct financial value while improving user experiences.

Similarly, the Building category, despite traditionally lower investment, is proving to be a high-return area, generating $21.2 billion USD in revenue from just $6.5 billion in investment. This points to a pent-up demand for innovative building solutions that could drastically enhance both safety and efficiency. The rise of robotics and AI-driven equipment in construction is just one example of how PropTech is closing gaps and creating new standards in construction efficiency and worker safety.

Globally, PropTech’s reach is also reshaping investment flows and regional opportunities. While U.S.-based PropTech companies raised $173.5 billion USD this past year, the UK, France, and Germany are emerging as central hubs in Europe, with Asia-Pacific countries like Japan, Singapore, and the UAE also establishing strong footholds. Even smaller markets, from Brazil’s $2.5 billion USD in PropTech investments to Vietnam, Kenya, and the Philippines are becoming focal points for the next generation of property innovations.

In short, PropTech’s impact is widespread and accelerating, driven by significant capital inflows, innovative technologies, and the ability to solve real-world problems in the property industry. These advancements are paving the way for a more integrated, responsive, and high-performing real estate sector, transforming not only how properties are built, bought, managed, and lived in but also creating a ripple effect throughout our economies and communities.

Key facts & Figures

$634.90

TRillion global real estate market estimated value

4

CATEGORIES

1,739

COMPANIES

2,494

INVESTORS

$47.49

Billion RAISED (2023-2024)

61

COUNTRIES

As a sign of the strength of the potential of PropTech worldwide, the global real estate market has an estimated $634.90 trillion USD value as of the end of the 2024 calendar year. In the 2023 to 2024 fiscal year, $47.49 billion USD was raised by a total of 1,739 companies.

In this cycle, 2,494 investors were active across the four main categories (building, Managing, Investing and Living) of PropTech companies across 61 countries. Although there was a consolidation of the landscape in terms of the number of countries that deal makers are headquartered in, the number of investors active in the market making deals, and even a decrease in the raw number of deal-making companies, the PropTech industry still produced a $13.78% increase compared to the 2022-2023 fiscal year. The increase was driven in part by the high value of companies involved in the trend of market consolidation and in part by investment in new technologies.

As measured by their dry powder reserves and recent leadership appointments signaling expansion, top investors include firms like Ares Management – a globally active alternative investment manager, operating in the credit, private equity and real estate markets, and headquartered in the United States. Additionally, giant firms with enormous capital reserves, such as Andreessen Horowitz, are essential players in the PropTech industry. Andreessen Horowitz (also known as AH Capital Management, LLC or a16z) has a total of $42 billion in assets as of May 2024. They invest in growth-oriented companies, especially early-stage start-ups.

Notably, the most significant deals this cycle, such as Black Knight’s $11.7 billion USD M&A transaction, highlight the increasing scale of investments combined with the trend of market consolidation. Black Knight is a company that provides integrated technology, services, data and analytics to the mortgage and real estate industries. However, the big story for investors in this cycle has been AI. AI is transforming PropTech in many ways. AI is being introduced to workforce platforms, modular systems, robotics, workflow systems, data analysis, smart home integration, and more.

11.7

Billion USD

Key Insights in Europe include the pressing need for PropTech solutions to address difficulties in many urban contexts, such as Berlin and Paris. In France, after BpiFrance, leading investors are PE/Buyout firms, such as Ardian, Eurazeo, Capza, Naxicap, Keensight, and Seven 2. Additionally, after the Accenta deal, most deals were concentrated in the Managing category, suggesting much of the French market resembles the trends of the global PropTech market, especially in terms of which types of firms are the biggest investors and which categories of companies are involved in the most deal making. In Spain, the PropTech market has been characterized by a more prominent role of venture capital lately than private equity/buyout firms. The trend suggests that the Spanish market is still in a growth rather than a consolidation phase. Although not yet completed, the recently announced Idealista deal is also of note. Idealista has over 1.4 million listings and is the Iberian market’s premier online real estate platform, having also recently expanded into Italy. Following the acquisitions of two Italian software companies – Miogest and Gestim – in 2020, Idealista has introduced 3D tours, virtual home stagings, and other video tour features. While Cinven aims to acquire a 70% stake in Idealista, Apax and Oakley are divesting their holdings. EQT also sells its majority stake in a planned 2.9 billion Euro deal facilitated by JP Morgan.

Key innovative Technologies Leading
the PropTech Transformation

PropTech is reshaping the real estate landscape, with advanced technologies driving operational efficiencies, boosting revenues, and transforming user experiences. Today, let’s look at the best-in-class technologies that are setting new standards across the industry.

Each of these technologies is more than just an innovation; they are building blocks for a more resilient, adaptable, and efficient real estate sector. Robotics, AI, big data, blockchain, and algorithmic design are setting the pace for PropTech’s evolution, demonstrating that the industry is no longer about just building properties but about building smarter, sustainable environments for everyone.

As PropTech continues to draw significant investments and foster transformative technologies, the potential impact on our global communities and economies is tremendous. By embracing these advances, we’re not only improving properties but redefining the standards of living and investment worldwide.