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The Real Estate Software Market size is forecast to increase by USD 5,796.08 million, at a CAGR of 9.15% between 2022 and 2027.
The growth of the market depends on several factors, including the growing middle-class population, the growing need for cost optimization in real estate software usage, and the increasing adoption of cloud-based software by companies. Real estate software helps companies in operational activities and processes. The application included in the report is computer-aided drafting (CAD) software, structural engineering software, project management software, enterprise resource planning (ERP), and customer relationship management (CRM) software.
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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 segment and was valued at USD 4,383.12 million in 2017. 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 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends 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, 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.
Altus Group Ltd: The company offers technology-powered real estate application called Altus Valuation, used to track property asset and tax management.
AppFolio Inc: The company offers a real estate application, namely AppFolio Property Management, which features a resident portal, vendor portal, owner portal, and surveys.
Autodesk Inc: The company offers real estate software called Revit BIM software, which helps architecture, engineering, and construction teams to create high quality buildings and infrastructure.
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 report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and analysis and growth opportunities from 2017 to 2027.
The market is undergoing transformative changes with a focus on infrastructure development projects and smart solutions. Cloud technology, coupled with virtual reality (VR), artificial intelligence (AI), and machine learning (ML), is revolutionizing the industry. Real estate software leverages smart contracts and customer relationship management (CRM) solutions, streamlining processes and enhancing efficiency. The market places a strong emphasis on compliance with data privacy regulations, driving the adoption of secure and compliant cloud deployment options.
Incorporating AI and ML, the industry benefits from advanced analytics and predictive insights, empowering stakeholders to make informed decisions. Real estate application encompasses a wide range of applications, from contract management software to CRM solutions, providing comprehensive tools for various needs. The market is evolving with a balanced approach to cloud and on-premise deployment, offering flexibility to cater to diverse user preferences. As the industry embraces digital transformation, the application plays a pivotal role in shaping the future of property management and development.
Real Estate Software Market Scope |
|
Report Coverage |
Details |
Page number |
16 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.15% |
Market growth 2023-2027 |
USD 5,796.08 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.85 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, UK, and France |
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 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 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 Five Forces Analysis
5 Market Segmentation by Deployment
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
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