by The real estate software market consists of a variety of software solutions that help individuals and organizations effectively manage properties including residential and commercial real estate. Real estate software provides crucial functions like accounting and bookkeeping, contract management, client and project management, document management, and analytics. The software offers transparency in business operations, streamlines workflow processes, and monitors property and tenant performance. Global real estate has seen rapid urbanization pushing the demand for urban infrastructure, commercial buildings, and housing which is creating immense opportunities for real estate developers and managers.
The Global Real Estate Software Market is estimated to be valued at US$ 28.63 Bn in 2024 and is expected to exhibit a CAGR of 12.% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the real estate software market are Accruent, Altus Group Ltd., AppFolio, Inc., Aareon, Autodesk Inc., CoStar Group, Entrata, IBM Corporation, Intuit Inc., MRI Software LLC, Microsoft, Oracle Corporation, RealPage, Trimble Inc., Yardi Systems.
The growing need for enhanced customer experiences and operational efficiency is driving increased demand for real estate software.
These solutions help streamline business processes, improve collaboration, and optimize property and asset management. Real Estate Software Market Trends are rapidly expanding operations to various countries recognizing opportunities in developing markets. Real estate software allows multi-national and multi-regional businesses to have uniform processes and gain insights across diverse geographies.
Market Drivers
Rapid urbanization worldwide is one of the key drivers for the real estate software market. According to UN estimates, 64% of the world population is projected to live in urban areas by 2050 leading to the massive construction of residential, commercial and retail real estate. Software solutions provide crucial help to developers and managers in handling this growth and maintaining compliance with various urban building and planning regulations.
The current geopolitical tensions are negatively impacting the growth of the real estate software market.
The ongoing Russia-Ukraine war, rising inflation rates, and recession fears in many countries are slowing down economic activities globally. Real estate transactions and property investments have declined sharply in 2022 across Europe and Russia. However, proptech solutions are helping real estate firms to minimize disruptions and adapt to the changing environment. More companies are adopting cloud-based property management software, virtual tours, online document management, and analytics tools to make their day-to-day operations flexible and cost-effective. The real estate software providers are also focusing on developing new solutions for remote property valuation, virtual inspections, and online leasing to increase efficiency. Such technologies will be critical for the market to bounce back once the geopolitical issues are resolved. However, the market growth over the forecast period of 2024 to 2031 will remain tentative based on how quickly global economic and political stability returns.
In terms of value, the North American region accounted for the largest share of the real estate software market in 2024, estimated at around US$ 11 Bn. This was attributed to strong technology adoption, abundance of proptech startups, and large real estate enterprises having significant digital transformation budgets in the US and Canada. The Asia Pacific region emerged as the fastest growing regional market, projected to expand at a CAGR of over 15% during the forecast period. This was due to the ongoing digitization of the real estate industry and rapid urbanization projects involving smart city and infrastructure developments across major Asian economies. India, Australia, Japan, Singapore, and China continued to provide lucrative opportunities for real estate software vendors in the region.
Real estate companies today require software solutions to streamline property, asset, facility, and portfolio management. Though current geopolitical challenges remain, technology will play an increasingly important role going forward for the industry to operate efficiently across different markets globally. Cloud adoption, data analytics, virtual/augmented reality, and blockchain are some emerging trends that real estate software providers are leveraging to help customers navigate changing market scenarios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. LinkedIn
