|Market Size in 2022||Market Forecast in 2030||CAGR (in %)||Base Year|
|USD 10.54 Billion||USD 22.88 Billion||10.12%||2022|
Real Estate Software Market
The global real estate software market size was worth around USD 10.54 billion in 2022 and is predicted to grow to around USD 22.88 billion by 2030 with a compound annual growth rate (CAGR) of roughly 10.12% between 2023 and 2030.
Real estate software is a specially designed and programmed digital application meant for the real estate industry. The programs help in dealing with the complex ecosystem surrounding the construction, sale, renting, and occupancy of real properties including all types of buildings, structures, utility systems, roads, and other structures attached to the land. Real estate software is used by companies and agents working in real estate business including brokers, investors, agents, agencies, and property managers. These programs have digitized the real estate industry which until a few years ago was mainly concerned with manual work across responsibilities such as managing customer relationships, keeping track of property licensing and documentation, marketing & advertising, and other aspects. However, with the advent of new and simplified real estate software, the market is thriving and is expected to continue growing in the coming years. Several types of real estate software are currently available in the commercial market including applications with generic features and programs meant for specific purposes such as tenant and lease management or lead generation.
Booming real estate industry and growing complexities in the sector to drive market growth
The global real estate software market is projected to grow due to the increasingly expanding real estate industry across the globe. The growing population index along with the changing landscape around commercial centers has created an immediate need for solutions that can help real estate companies, brokers, and agents manage the extremely complex web of the real estate sector. The number of residential buildings globally is on the rise. In addition to this, the commercial space is evolving rapidly as corporate offices and land requirements for building new commercial centers are also rising. Real estate software is designed to help the market players make maximum utilization of the available resources and come to well-informed and intelligent growth strategies. For instance, one of the key advantages of using real estate software is having access to the most recent government regulations and statutory laws related to commercial spaces or residential buildings. Agents or brokers do not have to put in any manual work to access these details as comprehensive yet summarized information can be directly obtained using the corresponding real estate application.
High cost of applications and lack of acceptance among potential consumers may restrict market growth
The global real estate software market growth rate is projected to be restricted due to the high cost of real estate software. For instance, as per research, the cost of creating an application for building management can vary between USD 45,000 to USD 275,000 depending on the exact offerings of the tool. On the other hand, the cost further increases when other factors are considered including training the employees to optimally use the program along with integration expenses that may arise in case of an existing system or other programs used by real estate agents. Smaller players that operate on a limited client basis may not have any requirement of a comprehensive tool thus limiting the overall consumer reach of real estate software.
Growing options in the commercial market are expected to attract more buyers
The global real estate industry is a fast-emerging industry and currently, it is filled with consistent research, innovation, and new application launches. Companies developing these software programs are working toward providing customized solutions either focusing on sector-specific needs or business-specific requirements. In October 2022, MRI Software, a leading solutions provider in the real estate industry, launched its latest offering in the form of next-generation MRI Agora™. It is a connected and open technology platform that allows users to automate mundane tasks and gain access to connected data. These technologies are meant to relieve real estate agents from everyday monotonous work by automating the procedures while allowing the resources to spend more time on qualitative work. The growing popularity of real estate software is evident in the growing number of partnerships undertaken by service providers, consumers, and associated technology partners. In May 2023, Planon Corporation, a leading software provider, announced a partnership with SAP to develop a comprehensive and integrated solution for facility and real estate management. SAP is expected to bring its Enterprise Resource Planning capabilities into the deal. In October 2022, global technology giants Google Cloud and Accenture announced that the firms will be renewing their commitment to joint collaboration aimed at shaping the real estate software industry by leveraging advanced tools such as Artificial Intelligence (AI) and Machine Learning (ML).
High risk of security breach and navigating regional compliance requirements pose as crucial challenges
Real estate software, like other digital tools, is vulnerable to cyber security threats and this aspect could significantly impact the real estate software industry size during the forecast period. These programs contain confidential data related to finances, customer information, building or site-related data, and other parameters. In recent times, cybercrimes have multiplied at an increasing rate thus restricting new consumers from entering the market. Additionally, real estate programs have to adhere to regional and local real estate laws and it can be time-consuming to ensure compliance causing concerns of service providers to enter new markets.
The global real estate software market is segmented based on end-user, type, application, deployment, and others.
Based on end-user, the global market segments are real estate agents, architects & engineers, project managers, and others. In 2022, the most dominant segment was architects & engineers and it controlled more than 37.7% of the total share. Real estate software is helpful in developing feasibility reports, site analysis, designing & drafting, and ensuring environment compliance among other applications. Furthermore, the integration with virtual reality (VR) has allowed architects to provide a virtual tour to buyers or customers.
Based on type, the global real estate software industry is fragmented into contract software, customer relationship management software, project management software, enterprise resource planning software, and others.
Based on application, the real estate software industry divisions are commercial and residential. The latter segment generated the highest revenue in 2022 and held control over 53.5% of the total revenue. The growing population rate and increasing demand for residential spaces along with factors such as increasing disposable income, and availability of financial assistance have contributed to segmental growth. Modern buyers have specific preferences and the growing cost of housing leads to demand for improved customer experience.
Based on deployment, the global market is divided into on-premise and cloud.
|Report Attributes||Report Details|
|Report Name||Real Estate Software Market|
|Market Size in 2022||USD 10.54 Billion|
|Market Forecast in 2030||USD 22.88 Billion|
|Growth Rate||CAGR of 10.12%|
|Number of Pages||220|
|Key Companies Covered||MRI Software, Autodesk (AutoCAD and Revit), PlanGrid (now part of Autodesk), Yardi Systems, Buildertrend, AppFolio, RealPage, Redfin, Procore, CoreLogic, CoStar Group, Zoho Corporation, Trimble, Zillow Group, Newforma, and others.|
|Segments Covered||By End-User, By Type, By Application, By Deployment, and By Region|
|Regions Covered||North America, Europe, Asia Pacific (APAC), Latin America, Middle East, and Africa (MEA)|
|Historical Year||2017 to 2021|
|Forecast Year||2023 - 2030|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
North America to generate the highest CAGR during the coming years
The global real estate software market will be led by North America. In 2022, the region accounted for 34.9% of the global revenue. Factors such as increased home ownership and the rising construction of modern commercial centers are crucial growth drivers. Additionally, the presence of key real estate developers in the US further helps the regional growth trend.
Europe is projected to deliver significant results. The regional real estate laws are steadily evolving depending on social, economic, and environmental factors. For instance, since 1st January 2021, buildings in Europe had to adhere to the new laws related to energy efficiency which dealt with limited to zero use of energy for cooling, heating, and hot water. Such changes are difficult to track or comply with. Real estate software programs can provide excellent assistance in staying updated with all the latest changes thus allowing real estate companies or personnel to provide better customer service.
Asia-Pacific is an essential emerging market. The growing construction of residential buildings and increased demand for better management of the real estate industry will fuel the regional growth rate.
The global real estate software market is led by players like:
Real estate software is a specially designed and programmed digital application meant for the real estate industry.
The global real estate market is a fast-emerging industry and currently, it is filled with consistent research, innovation, and new application launches.
According to study, the global real estate software market size was worth around USD 10.54 billion in 2022 and is predicted to grow to around USD 22.88 billion by 2030.
The CAGR value of the real estate software market is expected to be around 10.12% during 2023-2030.
The global real estate software market will be led by North America. In 2022, the region accounted for 34.9% of the global revenue.
The global real estate software market is led by players like MRI Software, Autodesk (AutoCAD and Revit), PlanGrid (now part of Autodesk), Yardi Systems, Buildertrend, AppFolio, RealPage, Redfin, Procore, CoreLogic, CoStar Group, Zoho Corporation, Trimble, Zillow Group, and Newforma.
The report explores crucial aspects of the real estate software market including a detailed discussion of existing growth factors and restraints while also browsing future growth opportunities and challenges that impact the market.