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The Real Estate Software Market size is forecast to increase by USD 7.20 billion, at a CAGR of 10.22% between 2023 and 2028. The market's growth hinges on various factors, notably the expanding middle-class demographic, which drives demand across sectors. Additionally, there's a rising emphasis on cost optimization within the real estate sector, compelling firms to leverage software solutions efficiently. Another pivotal driver is the widespread adoption of cloud-based software among enterprises, enabling them to streamline operations and enhance scalability. These trends underscore a shift towards more flexible and efficient technological solutions that cater to modern business needs. As companies seek to improve operational efficiency and adaptability, the demand for innovative software solutions, particularly in real estate and beyond, continues to rise. Embracing cloud technology and optimizing software usage are crucial strategies for organizations navigating competitive landscapes and evolving market dynamics.
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The market is experiencing significant growth driven by various factors. Customer data management plays a crucial role, enabling personalized services and improving client relationships. Infrastructure development projects benefit from smart solutions and software technologies that streamline planning and management processes. Artificial intelligence is increasingly integrated into real estate software, enhancing data analysis and predictive capabilities. Social media and online advertising platforms are leveraged for marketing properties and reaching potential buyers or renters. Digital applications facilitate efficient property management, including rent collection and maintenance tracking. Real estate professionals utilize software for scheduling appointments, sending reminders, and managing building sites. Housing initiatives are supported through software that optimizes utility systems and road infrastructure planning. As the industry continues to evolve, advanced software solutions are essential for enhancing operational efficiency and meeting the diverse needs of stakeholders in the real estate sector.
One of the key factors driving the market growth is the increasing adoption of cloud-based software by real estate companies. The global market is expected to benefit heavily from the growing adoption of cloud-based services offered by software. In addition, on-premises software is costly as users bear the one-time installation cost. A majority of companies in underdeveloped and developing countries find it difficult to purchase on-premise software due to budget constraints.
Moreover, to overcome this challenge, various market players in the global market have come up with cloud-based services to provide more efficient and customer-friendly services to companies. Furthermore, A cloud-based model of software is made available to companies as a service on a subscription basis. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the market growth is the use of blockchain technology in real estate management software. Rapid technical advancements enable overcoming the difficulties related to the openness of data and procedures that are now being seen in the global market. In addition, the market can effectively boost transparency at all levels of activity by using blockchain technology. Every record is encrypted thanks to blockchain technology, which also makes ledgers impenetrable to hackers.
Moreover, there is a reduction in fraud and transaction duplication as changes cannot be made after the transactions are finished. In addition, payments in real estate deals can be received promptly, even after business hours, thanks to blockchain technology. Furthermore, blockchain technology offers seamless and quick transactions by doing away with the necessity for a middleman. Hence, such factors are expected to positively impact the market. Therefore, it is expected to drive the market growth during the forecast period.
Resistance to change of process involving the use of new real estate applications is one of the key challenges hindering market growth. The considerable opposition to change in the process by real estate companies around the world is anticipated to pose a significant threat to the global market. In addition, due to a lack of managerial assistance, the business is hesitant to embrace new software.
Moreover, several managers in the industry tend to prefer investing in cutting-edge equipment and materials needed for construction over investing in software. In addition, the low adoption of real estate applications is also caused by a lack of knowledge about and trepidation about technological solutions. Furthermore, citizens in developing countries have much less purchasing power than citizens in wealthy countries. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
The cloud-based segment is estimated to witness significant growth during the forecast period. Several factors, including low initial investments, relatively quick implementation, low cost of maintenance, easy accessibility, and scalability, drive the adoption of cloud-based deployment. In addition, cloud-based deployment eliminates the need for purchasing servers.
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The cloud-based segment was the largest and was valued at USD 4.76 billion in 2018. In addition, data are stored on remote servers owned by market players that provide real estate applications. Furthermore, buyers can subscribe to the software on a monthly or annual basis. In addition, cloud-based software is cost-effective, and it is extensively used by small and medium-sized enterprises (SMEs) and startups to avoid expenses on the implementation and maintenance of on-premises deployment. The main advantage of this segment is that it can be deployed quickly. Hence, such factors are expected to fuel the growth of this segment, which in turn will drive the market growth during the forecast period.
The increasing application of real estate software in the residential segment will increase the market growth during the forecast period. The residential segment comprises property (land and buildings) that are used for residential purposes. The commercial or industrial segment is used for commercial purposes, such as operating a store, office, or factory. In addition, buying the residential segment is usually the biggest and most significant financial investment a person will make in their life. The value of the residential segment is affected by many factors, such as size and location. Moreover, a cloud-based residential application or CRM is a system that helps manage relationships between buyers, sellers, agents, brokers, developers, and financial institutions and caters to the multiple requirements of agents and firms. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. The US economy is stable and is characterized by low unemployment rates. As a result, it leads to a positive economic outlook among the citizens. Moreover, the population growth rate in the US is not significant, the number of immigrants is rising, which is increasing the population in the country. Thus, the number of first-time homebuyers in the country is rising. The rising number of first-time homebuyers in the US is creating a supply-demand imbalance.
Furthermore, the demand for houses exceeds the current availability. In addition, construction activities in the US are likely to increase to meet the ever-rising demand for houses, which will contribute to the market in the country. Real estate and the housing market play an important role in the US economy. Hence, such factors are driving the market growth during the forecast period.
The market 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 growth 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative market growth analysis of companies has 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
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The market is rapidly evolving with advancements in technology tailored to meet the diverse needs of the industry. Websites and digital application streamline property management businesses, facilitating efficient data management strategies and sensitive data protection. Virtualization and Virtual Reality enhance user engagement and workplace experience, while Machine Learning and automation optimize sales, marketing, and financial operations. Smart contracts and dashboards improve transaction management and financial data analysis, crucial for property management and project oversight. Cloud-based solutions cater to real estate agents, architects, engineers, and investors, ensuring seamless access and cybersecurity measures against threats and cybercrimes. Enterprise resource planning software aids in real estate accounting and CRM, supporting tenant and lease management across residential and commercial properties. As the market embraces innovation, software solutions play a pivotal role in enhancing efficiency and driving growth across the real estate industry.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.22% |
Market Growth 2024-2028 |
USD 7.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.36 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, China, UK, France, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Altus Group Ltd., AppFolio Inc., Autodesk Inc., Bentley Systems Inc., CDK Global Inc., CoStar Group Inc., CREATIO EMEA Ltd., Dassault Systemes SE, Fiserv Inc., Fortive Corp., IFCA MSC Berhad, International Business Machines Corp., LanTrax Inc., MRI Software LLC, Oracle Corp., Planon Shared Services BV, RealPage Inc., SAP SE, Trimble Inc., and Yardi Systems Inc. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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