IT in Real Estate Market Size
|2022 - 2029
|Market Size (2024)
|USD 10.54 Billion
|Market Size (2029)
|USD 17.22 Billion
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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IT in Real Estate Market Analysis
The Global IT Market in Real Estate Industry is expected to grow from USD 10.54 billion in 2024 to USD 17.22 billion by 2029, at a CAGR of 10.32% during the forecast period (2024-2029).
It is becoming a driving force necessitating how real estate companies market products to their clients. The shift from physical to digital-based records and documents has been the initial stepping stone for adopting technology in real estate. With the COVID-19 pandemic, real estate developers suddenly face the need to adopt technology to get property sales going rapidly. CRM SaaS is the key for real estate companies that want to leverage enhanced software technology to drive their business.
- In the real estate industry, It is important to boost visibility and efficiencies across the organization. ERP systems can make it possible and reduce costs without rewriting industry benchmarks or compromising on quality. Oracle ERP Cloud has helped a US real estate company to increase productivity and streamline activities.
- The introduction of IT Software, CRM, ERP, and Business Intelligence are emerging trends in the real estate market. The market is being driven by urbanization and a surge in adopting new software tools for accurate data software, reduced risk of errors, and other amenities. Dominant players, like Autodesk, IBM, Microsoft, etc., provide solutions for different needs and requirements of the real estate industry. Therefore, the funding gained by these companies is expected to accelerate the use of property technology bounds and strengthen the rise of real estate software globally.
- Huge construction sites and housing programs by developing countries like China and India in Asia and countries like Serbia and Russia in Europe serve as a driving force for the cloud and on-premise real estate IT software and other property management platforms. These platforms provide efficiency, transparency, accessibility, and reliability to the entire project and real estate management.
- The use of technology in the real estate industry has resulted in more efficient information management and the smooth execution of numerous business activities. Organizations that want to embrace industry best practices and provide administrative support to their customers are using customer relationship management (CRM) and business intelligence models.
- However, automated communications and technological advancements can streamline the user's messaging, but they still can't replace human interaction and authentic communication, which can create a barrier to the growth of the IT market in real estate.
IT in Real Estate Market Trends
This section covers the major market trends shaping the Real Estate IT Market according to our research experts:
Cloud Type of Deployment is Expected to Account for a Significant Share
- Digital transformation has created an increasing demand for connectivity. The explosion of Big Data with the Internet of Things (IoT) and constant technological innovations to efficiently manage the complex real estate portfolio require simply connected IT solutions. The deployment of these solutions on premise requires different servers to be purchased for different solutions, which not only adds to the redundancy but also leads to the requirement for additional employment, increasing the cost-to-completion of the project.
- Thus, with a cloud-based solution, such as SAP Cloud for Real Estate, facility managers and lease administrators can manage real estate lease agreements, with all payment and valuation postings being recorded in real-time within SAP S/4HANA, providing real estate vendors with a holistic solution to manage operations without additional infrastructure and employment costs.
- The stakeholders in the real estate industry are highly reliant on physical paperwork and are required to carry the documentation on the go. At the same time, employees can access their digital library of files while on premises (unless the company has not digitized its records), but realtors are weighed down by this problem when away from the office.
- In May 2022, Sage, an accounting, financial, HR, and payroll technology for small and medium-sized businesses (SMBs) provider, announced the launch of Sage Intacct Real Estate, a new module that adds property management functionality to the Sage Intacct cloud financial management system. The solution combines the Sage 300 Construction and Real Estate (CRE) Property Management with Sage Intacct's multi-tenant cloud platform.
- The Indian market is witnessing an increase in demand for the real estate industry. According to IBEF, the market size of the real estate industry in India was valued at around USD 120 billion in 2017. It is estimated to reach USD 650 billion by 2025. In 2022, over USD 2.5 billion worth of investments were estimated in this sector across the country.
North America is Expected to Account for the Largest Share
- The real estate industry in North America seems to be on an accelerating disruption curve, highlighted by rapid changes in tenant dynamics, customer demographic shifts, and ever-increasing needs for better and faster data access to allow improved service and amenities.
- In the United States, investor sentiment related to real estate remains positive but has weakened over the past year, owing to uncertainty over economic policy and rising interest rates.
- According to the US Census Bureau, it is projected that real estate and rental and leasing revenue in the United States would amount to approximately USD 786.4 billion by 2024. Traditionally, the residential sector has been known to be the quickest adopter of IT.
- In July 2021, Salesforce announced the acquisition of Slack Technologies Inc. Together, Salesforce and Slack would create the Slack-first Customer 360, a single platform for connecting staff, clients, and partners with one another and the daily-use apps they utilize, all inside their current processes.
- Various emerging startups are establishing their business in the real estate technology market in the United States. For instance, New York-based property technology startup Facilio has raised USD 35 million in its latest funding round as the company aims to expand and enhance its technology. This investment would allow the company to expand its sales and marketing and enable more companies to reach success through a predictive, connected model of real estate operations.
IT in Real Estate Industry Overview
The global IT market in real estate is fragmented, with the presence of numerous players manufacturing various products in the market. Some of the prominent players in the market include IBM Corporation, Oracle Corporation, Salesforce.com Inc., The Sage Group PLC, SAP SE, and MRI Software LLC, among others.
- June 2022: IBM, in partnership with SL Green Realty Corp., announced that SL Green is leveraging IBM sustainability software to help advance their company's environmental, social, and governance (ESG) strategy. SL Green would use software from Envizi, an IBM Company, to better understand and report on its environmental initiatives, identify opportunities for improved efficiency, and further drive sustainability across its extensive real estate operations.
- June 2022: Hyland, a content services company, announced the release of its most recent product upgrades and enhanced solutions to support its clients' journey through digital transformation.
IT in Real Estate Market Leaders
Sage Group plc
*Disclaimer: Major Players sorted in no particular order
IT in Real Estate Market News
- September 2022: HDFC Capital, the subsidiary of the Housing Development Finance Corporation (HDFC), and Invest India, the Indian government's arm to promote investment, jointly announced the launch of a proptech platform HDFC Real Estate Tech Innovators 2022. Launched under HDFC Capital's HDFC Affordable Real Estate and Technology (H@ART) platform, it will identify, recognize and award innovations in fintech, the sales tech, construction tech, and sustainability tech sectors.
- July 2022: The DMZ announced its partnership with GroundBreak Ventures to launch applications for a specialized PropTech incubator, fuelling the potential for startups to enhance the real estate sector and build advanced enterprises.
- March 2022: LaSalle Investment Management (LaSalle) announced that it selected RealBlocks to cover its USD 77 billion global real estate business. RealBlocks would handle investor onboarding, KYC/AML, and e-signing of documents to facilitate an easy, digital experience for subscription into all of LaSalle's institutional funds.
IT in Real Estate Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Assessment of COVID-19 Impact on the Market
5. MARKET DYNAMICS
5.1 Introduction to Market Dynamics
5.2 Market Drivers
5.2.1 Technologically Transforming the Real Estate Sector and Increasing Demand to Manage Projects
5.2.2 Increasing Adoption of Cloud-based Solution
5.3 Market Restraints
5.3.1 High Costs Associated with IT Solutions
6. MARKET SEGMENTATION
6.1 By Deployment
6.2 By Solution
6.2.4 Business Intelligence
6.2.5 Enterprise Resource Planning
6.2.6 Customer Relationship Management
6.2.7 Asset Management
6.2.8 Other Solutions
6.3 By End User
6.4 By Geography
6.4.1 North America
6.4.4 Latin America
6.4.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.2 Oracle Corporation
7.1.3 Salesforce.com Inc.
7.1.4 The Sage Group PLC
7.1.5 SAP SE
7.1.6 MRI Software LLC
7.1.7 Buildium LLC
7.1.8 AppFolio Inc.
7.1.9 Yardi Systems Inc.
7.1.10 RealPage Inc.
7.1.12 RealSpace Software Ltd
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
IT in Real Estate Market Research FAQs
How big is the Global Real Estate IT Market?
The Global Real Estate IT Market size is expected to reach USD 10.54 billion in 2024 and grow at a CAGR of 10.32% to reach USD 17.22 billion by 2029.
What is the current Global Real Estate IT Market size?
In 2024, the Global Real Estate IT Market size is expected to reach USD 10.54 billion.
Who are the key players in Global Real Estate IT Market?
IBM Corporation, SAP SE, Oracle Corporation, Salesforce.com Inc. and Sage Group plc are the major companies operating in the Global Real Estate IT Market.
Which is the fastest growing region in Global Real Estate IT Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Real Estate IT Market?
In 2024, the North America accounts for the largest market share in Global Real Estate IT Market.
What years does this Global Real Estate IT Market cover, and what was the market size in 2023?
In 2023, the Global Real Estate IT Market size was estimated at USD 9.55 billion. The report covers the Global Real Estate IT Market historical market size for years: 2022 and 2023. The report also forecasts the Global Real Estate IT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Technology in Real Estate Industry Report
Statistics for the 2024 Technology in Real Estate market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Technology in Real Estate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.