The proptech market map has expanded over the last few years to include a whole universe with an estimated 10,000 proptech enterprises. One now unquestionably needs a map to traverse this complicated sector with its many domains and technical developments of various strategic orientations.
In this piece, we want to assess the present status of the real estate tech market map and identify the proptech businesses that are doing the best and the regions that are drawing in the most capital. We will also address the most common queries on the condition of the European proptech market and the highest-value proptech unicorns.
What’s in the Proptech Market Map?
There are several market participants in the real estate tech space, each concentrating on a certain proptech facet. Perhaps this explains why experts have not yet reached a consensus on how to draw the real estate tech market map. Still, the early stages are beginning to take shape thanks to creative proptech businesses and global communities.
This year, we showcased our comprehensive map of the proptech network, which serves as our summary of the proptech sector. View our proptech market map below, which features businesses from the residential and commercial real estate sectors.
Listing, broker tools, financial/capital market, underwriting, leasing and lease management, property management, building automation, and tenant experience are the categories that proptech firms are categorized under on the map. The best real estate proptech businesses are represented in each area, together with their products and methods for enhancing real estate operations throughout the whole real estate customer experience. According to Crunchbase, these are some of the most well-known and well-funded solutions, including Buildout ($8.4M), VTS ($462.4M), Appfolio ($30M), Airbnb ($6.4B), and Zumper ($180.2M), one of the biggest real estate markets.
Our list of the best proptech solutions for commercial real estate includes specific details about each of the aforementioned firms.
How much is the Proptech market worth?
COVID-19, which finally got the RE market on the innovation train after decades of resistance to digital adoption, propelled the proptech business’s explosive growth. The worldwide proptech investment industry has expanded, reaching a high of $24.3 billion in 2021.
Proptech is now a massive industry that, together with its sub-markets, accounts for a significant portion of the world economy. The proptech market is valued at $22.2 trillion. The size of the market is increased by $7 trillion by its neighboring and submarkets. (Refer to source)
How Many Proptech Companies Are There?
On the current proptech market map, there are over 10,000 vendors altogether; half of these firms are proptech startups, and seventy percent of these enterprises have venture capital funding.
The proptech market map showed 261 recently established proptech firms in 2014 (about 5000 proptech companies overall), but by 2022, that number had significantly increased to 1,200 proptech startups worldwide.
With 59.7% of all PropTech businesses worldwide, the United States leads the field, followed by Europe (27.2%) and Asia (3.5%).
In terms of overall investments, the United States leads with $1,079 billion. The USA is the top destination country on the proptech market map for luring foreign investment in the proptech industry, in addition to being the world leader in generating investment money.
But with companies growing at the same rate, Europe is soon catching up to the US. Additionally, Europe is seeing a notable surge in fundraising rounds and heightened attention from global venture capitalists and investors. According to Crunchbase, European investors drove 77% of seed fundings, 68% of early-stage fundings, and 49% of late-stage fundings in Europe.
According to CRETI, investors took a cautious approach in 2023. Proptech venture capital investment saw a notable change, amounting to $11.38 billion, which represents a return to pre-pandemic levels. This sum represents a significant 64.44% decline from the high of $32.0 billion in 2021 and a 42.42% fall from the $19.75 billion spent in 2022.
No matter how many proptech businesses exist, encouraging creativity and resiliency within the quickly changing sector continues to be the primary goal. Investor attention is mostly focused on AI proptech financing because of this. 500 businesses globally are now working on developing AI-powered real estate services, according to JLL.
In terms of statistics, artificial intelligence accounted for 70% of all agreements, and by 2022, worldwide financing for proptech driven by AI had reached $4 billion. With 64% of investors expected to make AI investments in 2025, projections point to an even larger percentage.
Which US Proptech Companies Are the Biggest?
Three American proptech firms led the way in terms of investment in 2021: better.com ($700 million), Service Titan ($500 million), and Hippo Insurance ($500 million), according to Annual Barometer.
Analysts predict that the PropTech market in the US will grow at a compound annual growth rate of 16% until 2032. Therefore, even if the US economy is expected to expand slowly over the next few years, the US is likely the place where the term “proptech” is most appropriate.
With 59.7% of all proptech businesses worldwide, the US market is home to the greatest number of them. In the United States, there were 2234 proptech enterprises in 2021, according to Unissu.
What are the Top Proptech Countries in Europe?
With $2,500 million invested, Spain is expected to be the top proptech nation in Europe in 2022, according to Statista. Idealista is one of the top Spanish businesses; in 2021, it successfully raised $649 million and $304 million in venture capital. Spanish businesses are mostly interested in the housing industry and the technology applicable to it.
Despite the uncertainties surrounding Brexit, the UK remains one of Europe’s top proptech industries, home to 709 firms and $2,300 million in investments. According to the Annual Barometer, only LendInvest in the UK received $700 million in investment money in 2021. By 2032, the UK PropTech market is projected to grow at a compound annual growth rate of 17.1%. (Refer to source) With US$ 2,100 million in investments and an estimated US$ 444.39 million by 2028, Germany rounds out the top three. The proptech market in Germany is projected to grow at a compound annual growth rate (CAGR) of 10.4% between 2021 and 2028.
Why is Proptech in Europe so Dynamic?
The EU proptech industry is now more risk-averse, predictable, and compliant because of the adoption of innovative methods in climate control and sustainable asset development.
Europe is standardizing the defragmented EU market collectively and becoming the global hub for proptech events. Furthermore, the European real estate tech market is still primarily offline as compared to other areas on the global real estate tech market map. In the
meantime, industries need new technical solutions to address concerns such as urbanization, population growth, and climate change regulations, aiming to reduce the strain on earnings and efficiency.
Another thing to consider is the amount of money flowing into the EU proptech sector, which PWC projects will total $69 trillion by 2033, providing a positive sign for the future.
Leaders in European proptech transactions for 2021 are as follows:
- McMakler, who has raised US$ 94 million; Berlin, Germany
- Here: $33 million raised; Paris, France; Rent with $5.55 million raised; London, England
In Europe, how many new proptech startups are established?
Between 2010 and 2022, entrepreneurs established more than 330 new proptech businesses in Europe, increasing the size of the worldwide industry. Of the totals, the UK, Germany, and France make for 201.
Is Proptech a Lucrative Place for Investment?
31% of investors in commercial real estate, according to Statista, want to fund proptech startups. Consequently, this leads to intense rivalry among venture capitalists. Statista’s graph below shows the global investment volume in proptech businesses by subsector from 2010 to the first quarter of 2022. After a brief look, it is clear that to succeed in the proptech industry tomorrow, one must be creative now.
The European PropTech industry had a record-breaking year in 2021, accounting for almost 20% of worldwide investment, including over 200 venture capital investments for €3.8 billion (a 350% increase over 2020 levels).
Concerning investments raised between 2020 and 2021, the top EU destinations are Germany ($245B), Spain ($974B), and the UK ($909B).
That’s remarkable, given that many laws, regulations, and procedures in
the sector kept major European proptech companies confined to their home markets for a considerable time. Consequently, the very promising proptech markets in Europe were unable to expand beyond their national boundaries. Unlike the American or Asian markets, the European proptech market lacks standardization. Instead, it remains highly fragmented, with distinct ecosystems across many nations.
Despite this, the EU real estate tech business is now expanding even more quickly than the proptech market in North America, according to PitchBook.
What are the Most Valuable Proptech Companies?
The most valued proptech businesses in 2022 and 2021 were Better.com ($700B), Lendinvest ($682B), Glovo ($649B), Loft ($525), The We Company ($1,100B), etc.
Speaking of categories, property management, and construction tech solutions get the most investments, with $17.1 billion going to 1.2K+ firms and $28.1 billion going to 1.4K+ companies, respectively. (Sources 1 and 2) The most competitive businesses concentrate on revenue generation and manufacturing to expand their proptech market share.
Why is Proptech Important?
Automation is the main way that businesses and real estate consumers may gain from the advent of proptech. The latter is bringing about observable changes in RE’s business practices. Automation software can boost lead flow by 77% (source). Second, proptech’s technological advancements make a difference, making the sector easier to manage and eventually more profitable. Above all, proptech and tech innovation are crucial as they transform how people buy and sell homes through advanced solutions.
- Automating old procedures and updating the closing process introduces greater transparency and control over the property and tenant life cycle. It also enables data analysis on property care, sales, sustainability, and fosters improved communication between tenants and landlords.
- Ultimately, the proptech market transforms real estate into a profitable venture for investors by offering innovative technological solutions. Advanced tools enhance client experiences for real estate professionals and consumers, improving efficiency and increasing customer satisfaction in the industry. According to Statista, investors spent $12.05 billion in proptech in 2021. The complex’s whole layout enhances the rental experience for renters and increases the industry’s allure for financial gain.
What Technologies Does Proptech Use?
Technological developments in the real estate industry are transforming global consumption patterns and changing how companies create and maintain properties. These advancements also influence how businesses sell and rent real estate, reshaping our understanding of property transactions and management worldwide.
It allows businesses, especially startups, to pursue innovative product development and transform the real estate technology landscape with new solutions. This support encourages creative approaches, fostering technological advancements and reshaping how the real estate industry operates and adapts to change.
Proptech relies on various technologies, including blockchain, virtual reality, augmented reality, and the Internet of Things (IoT). It also incorporates artificial intelligence, machine learning, and big data to enhance real estate processes and improve operational efficiency. Regarding real estate, the top three technologies having the most effects are AI (26%), AR (12%), and VR (12%). IoT and big data are behind them by just a small percentage.
Is Airbnb a Proptech Company?
One striking illustration of a proptech online real estate marketplace is Airbnb.
This shared economy platform now holds a market value of $30 billion (source). Numerous other sites have drawn inspiration from the Airbnb model’s success.
As a result, many new real estate marketplace platforms with unique specializations have appeared in the global proptech market. These platforms offer similar functionalities, contributing to the expanding and diverse landscape of the worldwide proptech industry. Three European rental sites that are good examples are Spotahome, 9flats, and Homaway (now Vrbo).
The website provides a customizable home-sharing model, offering flats, rooms, and mansions across 191 countries worldwide for customers. Using their smartphones, travelers can post, search, and reserve lodging on Airbnb with ease.
Conclusion
The Proptech landscape in 2025 is dynamic and evolving, as highlighted by the statistics and top market players. This data offers valuable insights into trends and innovations shaping the real estate technology sector, helping industry players stay informed. It guides industry professionals toward making informed decisions and embracing future advancements in the rapidly evolving real estate technology landscape
Moreover, if you are looking for a Real estate development company that can help you create a future-proof solution then you should check out Appic Softwares. We have an experienced team of Proptech developers who have created several real estate solutions like RoccaBox.
So, what are you waiting for?
