Washington, D.C. — August 3, 2025 — Confirmed data from Property Technology Magazine underscores that the commercial real estate sector is undergoing a profound transformation powered by PropTech, led by advances in artificial intelligence, IoT, data analytics, and sustainable building design.
Property Technology Magazine’s 2025 PropTech Trends Report, titled The Great Rebuild, alongside its inaugural Top 50 PropTech Index, outlines a sector rapidly shifting. The report places the global PropTech market at $35–40 billion in 2024 and projects its expansion past $100 billion before 2032: a nearly threefold increase in less than a decade. It notes that in 2023, PropTech attracted approximately $42 billion in venture capital across 80 countries, a strong indicator of investor confidence.
A key focus of the report is the pervasive adoption of AI across the property lifecycle. Approximately 70% of recent PropTech investments in 2024 included an AI component, with $3.2 billion dedicated to AI-centric platforms handling tasks like underwriting, valuation, tenant experience, and energy optimization. Similarly, technologies once seen as experimental have become standard: around three in four new commercial buildings are now equipped with built-in IoT systems enabling real-time maintenance, energy management, and ESG compliance tracking.
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The report also highlights growth in immersive virtual and augmented reality platforms. These tools allow potential tenants and buyers to explore properties remotely through shoppable virtual model units and interactive walkthroughs, significantly reshaping leasing and sales dynamics. Property management firms are increasingly relying on integrated PropTech platforms for workflow automation, operational efficiency, and improved tenant retention. Landlords report that enhanced digital experiences built on these technologies help keep tenants engaged and reduce turnover.
Through the Top 50 PropTech Index, companies are ranked based on their revenue growth, innovation, funding, trend adoption, and user uptake. The mix includes both established platforms and fast-growing startups operating across the entire real estate value chain.
The United States continues to anchor the industry, capturing 27–40% of global PropTech value. At the same time, the Asia–Pacific region is experiencing the fastest expansion, with an expected compound annual growth rate of over 20% through 2032.
Analysts view these trends as emblematic of a broader shift—PropTech is no longer supplemental but central to competitive positioning in commercial real estate. From AI-based underwriting workflows to smart-building infrastructures, real estate stakeholders—from owners to REITs—now see PropTech adoption as essential rather than optional.
At the heart of this transformation is sustainability. Smart buildings enabled by IoT and AI can continuously optimize energy usage and track ESG compliance. Tenants increasingly demand sustainable, tech-driven environments, pushing developers and property managers toward green and efficient operations.
Technology adoption has also sharpened amid capital shifts. Despite VC slowdown in other sectors, PropTech investment remained resilient with substantial capital flows. This suggests that even amid macroeconomic uncertainty, technology-led real estate innovation holds strong appeal for investors.
In summary, as of August 3, 2025, PropTech is reshaping commercial real estate through four interlinked drivers: artificial intelligence, smart and sustainable building infrastructure, immersive digital experiences, and broad investor support. Stakeholders who embrace these tools can unlock efficiencies, satisfy tenant expectations, and reinforce ESG performance. The Great Rebuild narrative positions PropTech not just as transformation in progress, but as the defining force of a new real estate paradigm.
