Global Real Estate Technology Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Real Estate Technology Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

In the first case, its an umbrella term for software tools and platforms used by different participants in the real estate industry, including brokers, investors, real estate-focused lenders, property owners and managers.
In the second sense, its an economic industry composed of companies which use technology to make real estate transactions more efficient.

Market Overview:

The latest research study on the global Real Estate Technology market finds that the global Real Estate Technology market reached a value of USD 31596.05 million in 2022. It’s expected that the market will achieve USD 127458.68 million by 2028, exhibiting a CAGR of 26.17% during the forecast period.

As with every sector, in the short term, the Covid-19 pandemic has caused the real estate technology market to slow down and investors to exercise caution towards their portfolios and towards new deals. Startups that rely on traffic in the built environment to demonstrate value, or indeed those supporting industries such as hospitality and retail, have suffered.

The startups that simplify processes by reducing the need for face to face interactions or digitizing physical processes have had the opportunity to shine. Corporates are showing an increased interest in technology which allows them to work normally despite the pandemic. Decision making processes that involve making tenants or customers feel safe have become a priority and in many cases, the internal hurdles that were preventing innovation have been removed, as key decision-makers realize the rules have changed.

The COVID-19 crisis has forced a once-in-a-generation shift at all levels of the real estate value chain as tenants and owners rethink how they use space and allocate strained budgets. The critical importance of real estate tech to solving the current crisis is demonstrated by unprecedented investment into real estate tech solutions, a historic spike in M&A activity and a massive run up in share prices for most public real estate tech companies.

The difficulties of integrating new technology with traditional real estate organizations

Introducing an impactful corporate innovation and venturing strategy into traditional real estate organizations comes with a number of material challenges. Issues range from how to integrate cutting-edge technologies into projects with long approval and development cycles to managing the risks of a long-term investment in the wrong technologies, through to the broader challenge of driving cultural change through organizations with highly entrenched methods of operating. If these issues are not handled properly, they may hinder market development.

Increasing Investment capital into RealTech companies

As the allocation of venture capital funding by an increasing band of global investors is deployed to uncovering and developing the RealTech innovation of the future, traditional real estate corporates will come under increasing pressure to adapt or perish. And they may increase their allocation to RealTech venture capital investment. With the long-term outlook for direct real estate capital investment remaining positive, allocations to RealTech will continue to increase significantly. The investors include not only venture capital firms and super angels, but strategic real estate corporate investors, many of which are market leaders. As technology continues to become the new battleground for real estate projects and assets, it is expected increased participation and investment volumes into RealTech companies by traditional real estate corporates, which in turn creates lucrative opportunity for the real estate technology industry.

Region Overview:

In global comparison, a significant portion of the revenue was generated in North America (39.09% in 2021).

Company Overview:

Opendoor is one of the major players operating in the Real Estate Technology market, holding a share of 6.63% in 2022.

Opendoor

Headquartered in San Francisco, Opendoor is a leading digital platform for residential real estate. In 2014, the company sets out to reinvent lifes most important transaction with a new, radically simple way to buy and sell house. It has rebuilt the entire consumer real estate experience and have made buying and selling possible on a mobile device.

Airbnb

Airbnb, Inc. operates an online marketplace for travel information and booking services. The Company offers lodging, home-stay and tourism services via websites and mobile applications.

Segmentation Overview:

By type, Software segment accounted for the largest share of market in 2021.

Software

Real estate management software makes it easier for property owners to manage their real estate and customers online.

Users need to have a lot of features in such management software. Namely, reporting, accounting, planning tenant screening (in case of rental software), automatic monitoring of insurance policy, and other vital functions.

Real estate management software saves money by utilizing the cognitive functions of an efficient computer program for management instead of a human or humans.

AR/VR technology

AR adds digital elements to a live view often by using the camera on a smartphone. VR implies a complete immersion experience that shuts out the physical world.

High-quality photos and 360 videos are not going to be not enough for cutting-edge Millennials. The first action that users do while searching for a home is virtual tours. In order for customers to have an ability to view home tours, companies let real estate agents capture the imagery of the property by using an iPhone or Ricohs 360-degree cameras like the Theta V and Theta Z1. Customers, on the other hand, can see arrows that let them click or tap around to different rooms.

IoT

The Internet of Things, or IoT, refers to the billions of physical devices around the world that are now connected to the internet, all collecting and sharing data.

Real estate is one of the industries that promise to be substantially changed by the IoT. The technology will be used in a variety of ways to make it easier for all parties when buying, selling, and renting properties. The IoT will also change the way individuals interact with their surroundings and offers financial and environmental benefits to property owners. Using IoT technology, real estate agents can safely show properties without being physically onsite. This saves time and makes them more productive as they can be working with multiple locations simultaneously.

AI

Today in the real estate industry, machine learning is already helping agents respond more quickly to clients questions, assisting brokerages in marketing their listings with greater precision and allowing Zillow to read interior property photos for Zestimates, a broadly used indicator that has become increasingly more accurate (median error rate of 4.5%), thanks in large part to AI.

Application Overview:

In the Real Estate Technology market, 67.49% of the total value was generated through the Residential segment by application in 2021.

Key Companies in the global Real Estate Technology market covered in Chapter 3:

Redfin
CoStar Group
Knock
Offerpad
Argus
Zillow
Flyhomes
Lianjia
We Work
Airbnb
Anjuke Inc.
Qualia
Purple Bricks
Opendoor
Compass

In Chapter 4 and Chapter 14.2, on the basis of types, the Real Estate Technology market from 2018 to 2029 is primarily split into:

Software
AR/VR technology
IoT
AI
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Real Estate Technology market from 2018 to 2029 covers:

Residential
Commercial

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)