PropTech Market Size Worth USD 185.31 Bn by 2034 Driven by Smart Cities and Digital Real Estate Adoption

The global proptech market size will grow from USD 54.66 billion in 2026 to USD 185.31 billion by 2034, with an expected CAGR of 16.40% from 2025 to 2034. The rise in smart cities projects and growing consumer demand for digital experiences drive the market growth.

Ottawa, Jan. 20, 2026 (GLOBE NEWSWIRE) -- According to Precedence Research, the global proptech market size was valued at USD 47.08 billion in 2025 and is expected to be worth nearly USD 185.31 billion by 2034, with a robust CAGR of 16.40% from 2025 to 2034. The market is expected to grow nearly 4 times over this period, driven by increasing investments in smart cities, rising demand for digital real estate experiences, adoption of AI, IoT, and cloud-based property management solutions, and a focus on sustainability in real estate.

The growth is further supported by rising urbanization, a tech-savvy consumer base, and the expansion of both residential and commercial real estate sectors. High initial costs of advanced software and hardware solutions, as well as complex integration procedures, may pose challenges to market expansion.

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PropTech Market Key Insights

Regional Leadership: North America dominated the global market in 2024, capturing the largest share of 55.3%.
Fastest-Growing Region: Asia Pacific is expected to witness rapid expansion with a CAGR of 18.6% from 2025 to 2034.
Property Type – Largest Segment: The residential sector held the largest market share of 53% in 2024, driven by smart home adoption and rising homebuyer demand.
Property Type – Fastest Growth: The commercial and industrial segment is poised for strong growth, projected at a CAGR of 18% during 2025–2034, fueled by warehouse automation and commercial space development.
Solution – Market Share Leader: Software solutions dominated the market in 2025, accounting for 68% of revenue, owing to property management, CRM, and virtual tour tools.
Solution – Fastest Growing: Services are growing robustly at a CAGR of 14.6%, supported by professional, managed, and digital property services.
Deployment – Leading Segment: Cloud-based solutions captured the majority share of 61% in 2024, driven by cost efficiency and ease of deployment.
Deployment – Rapid Growth: On-premises solutions are expected to grow at a CAGR of 13.1% between 2025 and 2034, due to enhanced security and customization capabilities.
End-User – Market Leader: Property managers and agents held the largest revenue share of 42% in 2024, reflecting demand for streamlined operations and tenant management.

What is PropTech?

The proptech market growth is driven by the growing tech-savvy generation, strong focus on sustainability, growing urban expansion, surge in smart buildings, increasing need for automating mundane tasks, development of eco-friendly buildings, and increasing investment in real estate.

Proptech is an online platform used for simplifying the selling, marketing, purchasing, management, and research of properties. The various tools used for proptech are big data, artificial intelligence, drones, internet of things (IoT), Chatbots, blockchain, data analytics, and virtual reality. Proptech offers benefits like virtual tours of properties, digital contracts, automation of operational tasks, faster tenant communication, real estate crowdfunding, and digital floor plans.

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Private Industry Investments for PropTech:

Fifth Wall is a US-based venture capital firm that focuses on investing in technology that addresses climate change and other tech applications within the global real estate sector.
Hidden Hill Capital, headquartered in Shanghai, specializes in tech-enabled logistics and supply chain technologies through minority investments in the Asia-Pacific markets.
Gaw Capital Partners, based in Hong Kong, is a private equity real estate firm that invests in proptech through its alternative investments division, emphasizing sustainability and climate tech sectors.
Camber Creek is a Washington D.C.-based VC that climbed the global rankings by investing in innovative technologies for property management, construction, and real estate finance solutions.

Key Trends of the PropTech Market:

AI-Driven Operational Efficiency: Artificial Intelligence has transitioned from experimental use to a core infrastructure tool, now powering predictive maintenance, automated property valuations, and hyper-personalized tenant communications. These AI solutions allow property managers to move from reactive to proactive maintenance, significantly reducing operational costs and improving tenant satisfaction.
Sustainability and ESG Integration: Environmental, Social, and Governance (ESG) mandates have become a primary driver of investment, pushing the adoption of smart building systems that monitor and optimize energy and water consumption in real-time. Properties demonstrating measurable efficiency and green certifications now command higher occupancies and rent premiums as they align with strict global carbon-neutral goals.
Digitalization of Transactions and Immersion: The integration of blockchain for secure, tamper-proof records and the widespread use of virtual/augmented reality (VR/AR) for remote property tours are fundamentally shortening transaction cycles. These technologies allow for borderless investment and fractional ownership while providing prospective buyers with interactive, high-fidelity visualizations of spaces before they are even built.

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Market Opportunity

Growing Housing Needs Surges Demand for PropTech

The rapid urbanization and the increasing number of people needing homes increase the adoption of proptech. The migration of people to cities and the increasing worldwide population increase demand for housing that requires proptech. The increasing spending of people on bigger homes and the rise in nuclear families increase the adoption of proptech.

The increasing demand for affordable housing and the rise in the discovery of properties increase demand for proptech. The strong consumer focus on eco-friendly infrastructure and the younger generation's focus on seamless digital experiences increase the adoption of proptech. The growing housing needs create an opportunity for the growth of the Market.

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PropTech Market Report Coverage

Market Size (2025)	USD 47.08 Billion
Market Size (2026)	USD 54.66 Billion
Market Size (2034)	USD 185.31 Billion
CAGR (2025–2034)	16.40%
Largest Market	North America (55.29% market share in 2024)
Base Year	2024
Forecast Period	2025–2034
Segments Covered	Property Type, Solution, Deployment, End-User, Regions
Property Type	Residential (53% in 2024), Commercial, Industrial (CAGR 18% 2025–2034)
Solution	Software (68% share in 2025), Services (CAGR 14.6%)
Deployment	Cloud-based (61% in 2024), On-premises (CAGR 13.1%)
End-User	Property Managers/Agents (42% in 2024), Housing Associations, Property Investors, Others
Regions Covered	North America, Europe, Asia-Pacific (CAGR 18.6%), Latin America, Middle East & Africa
Key Market Drivers	Adoption of AI, ML, IoT, VR, Big Data; enhanced property management; digital transactions; cost reduction; online property platforms like Opendoor
Regional Insights	North America: Mature market, early tech adoption; Asia-Pacific: Fastest growth due to urbanization and tech adoption

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Regional Insights

Why North America Dominates the PropTech Market?

North America dominated the market in 2024. The advanced technological infrastructure and increasing consumer demand for digital experiences increase the development of proptech systems. The well-developed real estate industry and increasing demand for smart homes increase the adoption of proptech. The growing number of property owners and the strong presence of companies like Redfin & Zillow drive the market growth.

What is the U.S. PropTech Market Size in 2026?

According to Precedence Research, the U.S. proptech market size is valued at USD 24.73 billion in 2026 and is expected to reach around USD 76.84 billion by 2034, growing at a strong CAGR of 18.50%from 2025 to 2034.

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U.S. PropTech Market Trends

The U.S. market is witnessing strong growth driven by the rising adoption of AI, big data analytics, and cloud-based platforms to improve property valuation, leasing, and asset management.

Increased demand for smart buildings and energy-efficient infrastructure is accelerating the use of IoT-enabled solutions for real-time monitoring and predictive maintenance. The expansion of remote work and digital transactions is further boosting virtual property tours, online brokerage platforms, and automated property management tools.

Which Region is Experiencing the Fastest Growth in the PropTech Market?

Asia Pacific is experiencing the fastest growth in the market during the forecast period. The rapid urbanization and growing new construction projects increase demand for proptech. The growing digital native population and a strong focus on efficient property management increase the adoption of proptech.

The smart city development and ongoing digital transformation in real estate increase demand for proptech, supporting the overall growth of the market.

China PropTech Market Trends

China’s market is growing rapidly, supported by a strong government push towards smart cities and digital urban infrastructure. Widespread adoption of AI, big data, and IoT is enhancing property management efficiency, smart community services, and real-time building monitoring. Rising demand for digital housing transactions and property rental platforms is accelerating the use of cloud-based and mobile PropTech solutions.

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PropTech Market Segmentation Analysis

Property Type Analysis

Why is the Residential Segment Dominating the PropTech Market?

The residential segment dominated the market with a 53% share in 2024. The strong consumer preference for smart homes and the increasing number of homebuyers increase demand for proptech. The rise in remote work and the growing development of large-scale residential construction projects increase demand for proptech. The increasing number of tenants and growing investment in residential property increase the adoption of proptech, driving the overall growth of the market.

The commercial and industrial segment is the fastest-growing in the market during the forecast period. The growing development of commercial spaces and the increasing need for warehouses increases demand for proptech. The increasing demand for distribution centers and the shift towards online shopping increase the adoption of proptech. The development of green buildings and focus on warehouse automation increases demand for proptech, supporting the overall growth of the market.

Global PropTech Market Revenue ($ Million), By Property Type, 2021 to 2024

By Property Type	2021	2022	2023	2024
Residential	14,394.30	16,454.60	18,814.30	21,551.10
Commercial and Industrial	11,745.30	13,783.80	16,180.50	19,028.90
Total	26,139.60	30,238.30	34,994.80	40,580.00

Solution Analysis

How did Software Segment hold the Largest Share in the PropTech Market?

The software segment held the largest revenue share of 68% in the market in 2024. The increasing need for automating tasks like maintenance scheduling, lease management, & others, and focus on managing complex property portfolios, increases demand for software. The growing property valuations and increasing need for enhancing customer experience increase demand for software. The availability of software like virtual tour software, CRM, and property management software drives the market growth.

The services segment is experiencing the fastest growth in the market during the forecast period. The strong focus on risk assessment and the increasing need for digital contracts increase the adoption of services. The growing demand for personalised rental services and the rise in virtual tools for houses increases demand for services. The growing development of smart buildings and the rise in social distancing increase demand for services, supporting the overall growth of the market.

Global PropTech Market Revenue ($ Million), By Solution, 2021 to 2024

By Solution	2021	2022	2023	2024
Software	17,346.50	20,210.70	23,557.10	27,511.10
Services	8,793.20	10,027.60	11,437.70	13,068.90
Total	6,139.60	30,238.30	34,994.80	40,580.00

Deployment Analysis

Why Cloud-Based Segment Dominates the PropTech Market?

The cloud-based segment dominated the market with a 61% share in 2024. The strong focus on lowering upfront cost and growing development of large & single buildings increases demand for cloud-based solutions. The availability of cloud-based solutions across property managers, investors, agents, and tenants helps market growth. The need for automatic software updating and focus on data-driven decision making requires cloud-based solutions, driving the overall market growth.

The on-premises segment is the fastest-growing in the market during the forecast period. The presence of confidential information and focus on maintaining privacy increases adoption of on-premises solutions. The growing integration of on-premise systems with well-established IT infrastructure helps market growth. The customization ability, data security, and ownership of on-premises solutions support the overall growth of the market.

Global PropTech Market Revenue ($ Million), By Deployment, 2021 to 2024

By Deployment	2021	2022	2023	2024
Cloud-based	15,312.00	18,005.20	21,175.70	24,947.50
On-premises	10,827.60	12,233.10	13,819.10	15,632.50
Total	26,139.60	30,238.30	34,994.80	40,580.00

End-User Analysis

Which End-User held the Largest Share in the PropTech Market?

The property managers and agents segment held the largest revenue share of 42% in the market in 2024. The strong focus on lowering manual work and increasing the need for simplifying leases daily increases demand for property managers and agents. The focus on improving lead conversion and tracking performance of tenants increases the adoption of property managers and agents.

The growing demand for revenue generation for agents and the focus on enhancing client experiences increase the adoption of property managers and agents, driving the overall growth of the market.

Global PropTech Market Revenue ($ Million), By End-User, 2021 to 2024

By End-User	2021	2022	2023	2024
Housing Associations	5,054.60	5,791.50	6,638.00	7,622.80
Property Managers/ Agents	11,049.70	12,725.50	14,661.20	16,924.50
Property Investors	7,421.10	8,701.90	10,206.30	11,992.60
Others	2,614.20	3,019.50	3,489.20	4,040.20
Total	26,139.60	30,238.30	34,994.80	40,580.00

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Top Companies in the PropTech Market & Their Offerings:

Tier 1:

Ascendix Technologies: Provides a comprehensive suite of CRM and custom software solutions tailored specifically for commercial real estate (CRE) workflows, featuring tools like AscendixRE and AI-driven automation.
Zumper Inc.: Operates an end-to-end rental marketplace that simplifies the entire leasing process for tenants and landlords, offering verified listings, virtual tours, and digital rent collection.
Opendoor: Functions as a leading "iBuyer" platform that uses proprietary pricing algorithms to provide instant cash offers for residential homes, enabling sellers to close transactions quickly and online.
Altus Group: Delivers asset and fund intelligence through its ARGUS software suite, providing advanced data analytics, valuations, and risk management tools for the global commercial real estate industry.
Guesty Inc.: Offers an AI-powered property management platform designed for short-term and vacation rentals, centralizing bookings, guest communication, and operations across multiple channels like Airbnb and Booking.com.
HoloBuilder, Inc. (by FARO): Provides a 360° reality capture and construction progress management platform that allows teams to virtually document, communicate, and control job site progress.
Zillow, Inc.: Maintains a massive real estate marketplace that connects buyers, sellers, and renters with data-driven insights, including its "Zestimate" valuation tool and immersive AI-powered 3D home tours.

Tier 2:

ManageCasa
Coadjute
Vergesense
Reggora
Enertiv
Homelight
Proptech group
Qualia

Recent Developments

In April 2025, PropTechBuzz launched the India PropTech portal. The platform includes tech start-ups, consultants, academic institutions, developers, associations, and investors. The platform supports making informed buying decisions, evaluating vendors, discovering real estate buyers, and direct negotiation. (Source: https://www.rprealtyplus.com)
In May 2025, Punjab Governor Kataria launched the world’s first AI-enabled property booking app, MrProptek. The app provides instant booking abilities, property recommendations, 4K virtual walkthroughs, a builder dashboard, and transparent digital documentation. (Source: https://www.babushahi.com)
In July 2025, Hutfin launched a new commercial real estate app. The app is visible on the Google Play Store and the Apple App Store. The app offers real-time data on property and offers key features like patented digital token technology, blockchain-driven security, AI-powered property matching, & transparency. (Source: https://press.hutfin.com)

Segments Covered in the Report

By Property Type

Residential
- Multi-Family Housing
- Single Family Housing
- Others
Commercial and Industrial
- Retail Spaces
- Office Spaces
- Hotels
- Warehouses
- Others

By Solution

Software
- Property Management
  - Rental Listings Management
  - Applicant Management
  - Reporting & Analytics
  - Maintenance Activities Management
  - Others
- Asset Management
  - On/Offline Rent Payments
  - Portfolio Management
  - Evaluation and Financial Management
  - Others
- Sales and Advertisements
- Work order Management
- Customer Relationship Management
  - Customer Service
  - Customer Experience Management
  - CRM Analytics
  - Marketing Automation
  - Social Media Monitoring
  - Others
Services
- Professional Services
- Managed Services

By Deployment

Cloud-based
On-premises

By End-User

Housing Associations
Property Managers/ Agents
Property Investors
Others

By Region

North America
- U.S.
- Canada
- Mexico
- Rest of North America
South America
- Brazil
- Argentina
- Rest of South America
Europe
- Western Europe
  - Germany
  - Italy
  - France
  - Netherlands
  - Spain
  - Portugal
  - Belgium
  - Ireland
  - UK
  - Iceland
  - Switzerland
  - Poland
  - Rest of Western Europe
- Eastern Europe
  - Austria
  - Russia & Belarus
  - Türkiye
  - Albania
  - Rest of Eastern Europe
Asia Pacific
- China
- Taiwan
- India
- Japan
- Australia and New Zealand,
- ASEAN Countries (Singapore, Malaysia)
- South Korea
- Rest of APAC
MEA
- GCC Countries
  - Saudi Arabia
  - United Arab Emirates (UAE)
  - Qatar
  - Kuwait
  - Oman
  - Bahrain
- South Africa
- Egypt
- Rest of MEA

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