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The global property management market is projected to reach a value of USD 33.48 billion in 2027 with a CAGR of 7.72% between 2023 and 2027. The growth rate of the market depends on several factors including adherence to industry and government regulations for property listings, increasing importance of customer-centric business processes, and the increasing awareness of management software and its benefits. More than half of the companies report increased efficiency after implementing software solutions. Property management software is also known for reducing maintenance costs.
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The market share growth by the commercial segment will be significant during the forecast period. Commercial focus on the administration and operation of non-residential properties such as office buildings, retail spaces, industrial facilities, and commercial complexes. The commercial segment involves tasks specific to the commercial real estate sector, including lease negotiations, tenant retention strategies, facility maintenance, and ensuring compliance with commercial property regulations.
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The commercial segment was the largest and was valued at USD 6.71 billion in 2018. Additionally, in the Middle East, particularly in the UAE, Saudi Arabia, and Qatar, the commercial property sector has been expanding with the development of mega infrastructure projects and the establishment of free zones. Dubai, for instance, has become a global business hub, attracting multinational companies and necessitating sophisticated commercial services. The management of large office complexes, shopping malls, and industrial zones has become a critical component in sustaining the growth of the commercial real estate sector in this region. Thus, the growing commercial sector will continue to drive the growth of the market in the commercial segment during the forecast period.
The solutions segment encompasses a suite of sophisticated software applications and technological platforms designed to enhance operational efficiency and streamline complex processes for property owners and managers. Lease management software is a critical element within solutions, aiding in the efficient management of lease agreements, tracking lease terms, and automating related processes. Facility management software addresses the maintenance and operational facets of properties, including work order management, asset tracking, and preventive maintenance scheduling. Thus, as the construction industry embraces digitization, solutions will continue to play a pivotal role in shaping a more efficient and technologically driven approach to the management of properties, contributing to the overall growth of the market in the solution segment during the forecast period.
The software for property management is a digital tool used to manage various aspects of properties. It helps property managers streamline tasks such as tenant communication, rent collection, and maintenance requests. Using services managers experience improved tenant satisfaction through the use of software. The software for managing property offers features like accounting tools, lease management, and tenant screening. With this software, landlords can track vacancies, generate reports, and easily communicate with tenants and vendors. The software improves efficiency by automating repetitive tasks and centralizing property information in one place.
Adherence to industry and government regulations for property listings is notably driving market growth. A property manager or agent needs to be aware of the industry and government regulations related to property listings. Such regulations are different for different countries. Owing to the rising security concerns regarding data security and physical security, several regulations need to be met before a real estate deal is closed. In advanced economies, several rental and leasing laws are made compulsory by state governments, local authorities, and commissions. Property managers need to have all the relevant documents and transactional records to show the proof of every dollar received and sent from the trust account.
Moreover, software automates the entire documentation process. Moreover, various vendors have region-specific software, which has in-built regulatory compliances that govern data entry and record keeping. Such software automatically informs property managers of the necessary steps to follow to close a deal. Thus, owing to the adherence to industry and government regulations for property listings, the market is expected to witness growth during the forecast period.
Blockchain and smart contracts an emerging market trends shaping the growth. Blockchain is a technology that allows digital data to be distributed throughout a network. Blockchain technology makes transactions and exchanges of information faster and more secure. Smart contracts based on the blockchain ecosystem are among the industry trends. One of the most prominent real estate future trends for startups is property tokenization. This practice enables the transformation of a specific property into tokens that can be safely transferred between contract parties.
Moreover, as an alternative currency, bitcoin has become the most popular form of cryptocurrency. Currently, multiple landlords accept rent and pay taxes with bitcoin. Ohio has recently become the first state to accept Bitcoin for taxes. Thus, the integration of software with blockchain will make the software more secure, which, in turn, will drive the growth of the market trends and analysis during the forecast period.
Changing skill requirements for the adoption of emerging technologies is a significant challenge hindering market growth. Emerging technologies renovate the value chain of any industry, including the industry. The use of advanced technologies such as artificial intelligence, chatbots, and machine learning, can increase customer satisfaction as these technologies can help decrease the time taken to solve various problems, keeping the customer in the loop. This will make the customer feel less anticipated and more in control. Such technologies can also analyze customer behavior patterns, which will enable property managers to offer customized solutions.
However, the right skills and expertise are required to understand and use such advanced technologies. Without the help of experts who have hands-on experience in such technologies, property managers will not be able to utilize the technologies efficiently. Thus, the changing skill requirements for the adoption of emerging technologies are expected to negatively affect the global market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The major reason for the growth of the market in North America is the increasing investment in smart city infrastructure, growing investment in the retail sector, and the rising urbanization rate. The real estate sector in North America incorporates tools for managing properties, owing to the early adoption of technologies such as software-based services. The strong penetration of top vendors such as AppFolio Inc., London Computer Systems, and Entrata Inc. supports the overall growth of the market in North America. The US and Canada form a major part of the market in North America. Both these countries are highly developed, with high disposable incomes
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CBRE Group Inc. - The company offers a customized team of professionals along with technical services, property accounting services and property listing solutions
Guestline Ltd.- The company offers applications for hotel booking, client data, cloud-based reservations and business operation trackers.
Ezee Technosys Pvt. Ltd. - The company offers digital databases of clients, integrated reservations and cloud authorization.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Market analysis and report of qualitative and quantitative analysis of companies have been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The rental property management market encompasses a wide array of elements, from rent payments and credit card transactions to online invoices and expense management. Real estate management professionals, businesses, and rental property owners rely on comprehensive software solutions to streamline operations and manage portfolios efficiently. Rental software platforms offer automation for leases, invoices, and work orders, providing a seamless experience for both property managers and tenants. With features like online portals and mobile apps, users can easily access information and handle tasks anytime, anywhere. Integration with tools like TransUnion ensures robust tenant management and compliance with regulations.
From condos to student housing, property management companies leverage these solutions to handle maintenance issues, collections, and staff management effectively. With options ranging from Buildium to Yardi, the market offers diverse solutions tailored to the needs of investors, HOAs, and real estate professionals. Whether it's managing expenses or handling maintenance requests, software provides a centralized platform for efficient operations in the real estate industry.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028
Property Management Market Scope |
|
Report Coverage |
Details |
Page number |
157 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.72% |
Market growth 2023-2027 |
USD 10.40 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.23 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
360 Mango Solutions Pvt. Ltd., Amadeus IT Group SA, CBRE Group Inc., Ciirus Inc., Digital Arbitrage Ltd., Ezee Technosys Pvt. Ltd., Guestline Ltd., Honeywell International Inc., Hotelogix India Pvt. Ltd., InnKey PMS, International Business Machines Corp., Koch Industries Inc., Microsoft Corp., Micro Star International Co. Ltd., Oracle Corp., SAP SE, Frontdesk Anywhere Inc., InnQuest Software, Northwind Commercial Real Estate, and Saaranya Hospitality Technologies Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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