PropTech by the numbers: funding, adoption and ROI in 2025
PropTech’s data story is shifting from hype to measurable value. New statistics chart venture funding’s reset, rising adoption rates across residential and commercial real estate, and bottom-line gains from smart building technologies.
Market snapshot: a data-driven sector matures
In the PropTech sector, PropTech—spanning digital marketplaces, smart building platforms, and construction technology—has moved from experimentation to scaled deployment. Adjacent categories underscore the momentum: the global smart home market is on track to surpass $200 billion by the late 2020s, data from analysts shows, signaling broader consumer and landlord appetite for connected, data-rich property experiences. Across commercial real estate, the shift toward software-led operations is increasingly visible in leasing, asset management, and tenant engagement.
Investor and operator priorities are converging on operational resilience, energy performance, and user experience. In its latest industry outlook, industry reports show that institutional owners rank technology modernization among the top strategies to protect net operating income amid higher rates and shifting demand patterns. That directional thesis is catalyzing spend on building operating systems, digital twins, and analytics layers that can turn fragmented property data into actionable KPIs.
Capital flows: funding resets, focus sharpens
The venture cycle has cooled from the 2021 peak, but deal-making remains active in segments tied to cash-on-cash efficiency—energy optimization, workflow automation, and data infrastructure. After a slower 2023, PitchBook reports point to stabilization through 2024, with a shift toward later-stage financings and corporate strategic participation. That pattern favors companies with demonstrable unit economics and enterprise sales traction, rather than consumer-facing experiments.
Strategic buyers in real estate services and building equipment have become prominent catalysts. Firms like JLL, CBRE, and Schneider Electric have expanded venture arms and partnership programs, while category leaders such as VTS (leasing and asset management), Procore (construction management), and Matterport (spatial data) continue to scale recurring revenue footprints. The takeaway for founders: the bar has risen for evidence-backed ROI, but solutions that compress operating costs or unlock rent premiums still find capital.
Adoption metrics: from digital tours to smart operations
On the residential side, digital discovery is now near-universal. In the U.S., a large majority of buyers use online listings and mobile research as primary tools, and Realtor adoption of virtual tours, e-signatures, and CRM systems continues to climb, according to recent research...