Manya Rathore
Research expert covering India
Proptech - statistics & facts
Buying a piece of real estate involves much more than a simple transaction. It can be exceptionally complicated and time-consuming, involving property zoning, compliance inspections, and seemingly endless contracts and affidavits. Proptechs aim to streamline and modernize processes through technological innovation. These companies operate in various areas of the industry, from financing and investment to construction, and building management. Proptechs often specialize in a specific property type. In the first half of 2025, the multifamily sector attracted the largest share of proptech startup CEOs.
Heavyweights shaping the proptech landscape
The short-term vacation rental portal Airbnb is probably one of the best-known examples of a company that blurs the lines between real estate and tech. In 2025, parking tech firm Metropolis Technologies secured the largest proptech funding round in the U.S., highlighting the sector's broadening scope. Meanwhile, Lineage, a temperature-controlled warehousing company, tackles the challenges of food supply chains through real-time analytics and automation.
Another force disrupting the housing market includes real estate listing platforms, such as the U.S.-based companies Zillow and Realtor.com. For example, Zillow's estimate algorithm uses artificial intelligence (AI) for home valuations. Since 2021, the company has continuously increased its technology and development spending, showing its commitment to innovation.
AI adoption gaining ground, but unevenly
According to U.S. industry experts, some of the most potent disruptors in the real estate sector include construction costs, labor costs, cybersecurity, and artificial intelligence. However, the adoption of new technologies does not happen overnight. Companies approach these cautiously, often after sufficient research, a pilot phase, and gradual implementation. A recent Census Bureau survey found that nearly one in four U.S. real estate companies had used AI, though the majority still hadn't adopted it. Similarly, companies also pursue digital twins, smart contracts, tokenization, or other solutions.
Artificial intelligence (AI) has become one of the sector's defining growth areas, with AI adoption in real estate still in early stages globally. Investment patterns reveal where AI-driven proptech is gaining the most traction. Global proptech investment by segment showed that property management attracted 40 billion U.S. dollars in 2024, more than double the 17.8 billion U.S. dollars directed at the building segment. This concentration reflects the operational scale of managing large real estate portfolios, where AI tools for predictive maintenance, lease optimization, and energy management offer measurable efficiency gains.
Adoption rates vary widely across geographies and company types. In Europe, AI use among construction firms stood at 6.09 percent across the EU-27 in 2024, with Luxembourg at the high end at 19.08 percent and Romania at 0.18 percent. The global picture is similarly uneven: only 12 percent of real estate executives in construction sector worldwide reported regular use of AI in specific processes, while only one percent had fully integrated AI across organization.
