How to Build Proptech Software: Key Features, Approaches and Development Guide

Proptech software development is the foundation of real estate innovation. It opens doors for new players and supercharges efficiency for established firms.

However, the success of your proptech software development project depends on several crucial factors.

In this article, we’ll cover:

1. Essential steps of proptech software development;
2. Top proptech trends to follow in 2024;
3. An introduction to proptech and its significance in real estate.

What is PropTech?

Proptech, or “property technology,” refers to digital tools and software used to modernize and improve the real estate industry. Proptech covers a wide range of solutions, from property listings tools to finance or construction management platforms.

Proptech software development helps bring these solutions to life. Proptech software development companies, like Ascendix, specialize in creating tailored solutions that address real estate professionals’ specific needs. What’s more, we have expertise in integrating advanced technologies, such as AI. Get a free consultation with our experts on how to scale your business.

Some examples of proptech include:

• Online property marketplaces — Websites and apps that allow users to search for and compare properties, such as Zillow, Redfin, and Airbnb. Learn how to create a professional and effective website for your rental property with our expert guide.
• Virtual property tours — Software and platforms that enable users to tour properties remotely, such as Matterport and Realync.
• Smart home technologies — Devices that connect to the internet and provide remote access and control of home systems, such as Nest and Ring.
• Property management software — Platforms that simplify property management tasks, such as rent collection, maintenance requests, and tenant communication, such as AppFolio and Buildium.
• Construction technology — Tools that streamline and optimize the construction process, such as AI agents and copilots, 3D printing, drones, and robotics.

Examples of successful proptech startups include VergeSense, OnSiteIQ, Knotel, Homeday, HomeViews, Acaboom, and OhMyHome.

The above is just a mere fraction of the whole scope of proptech solutions. If you’re interested in gaining a more comprehensive understanding of the meaning and scope of proptech, proceed to the article on Proptech Definition.

Proptech Software Development: Step-By-Step Guide

Eat the frog — follow our guide on how to kick off with your proptech software development and what steps to take along the way.

1. Define a Niche and Target Audience

Real estate, the world’s largest industry, is also one of the least technologically advanced, according to JLL. This gap, combined with the industry’s diverse sectors and challenges, opens significant opportunities for innovation in proptech software development.

Here’s a breakdown of key needs by stakeholder:

Needs of Real Estate Stakeholders | Proptech Development

To better understand the diverse needs within the real estate industry, here’s a breakdown of key audiences, their challenges, and the solutions that proptech software can provide.

By understanding the needs of the stakeholders, proptech companies can develop proptech software that caters to these needs and improves the overall experience for everyone involved in the buying, renting, selling, investing, and lending process.

2. Conduct Market Research

Market research is a critical step in building successful proptech software. It helps you understand industry trends, identify potential users, and find gaps where your solution can bring value. Thorough research ensures your software meets real-world needs and stays competitive in the growing market.

Start with key proptech market key takeaways:

• North America lead with 56% of the global market share in 2023 and is expected to grow.
• The residential segment accounts for 58% of revenue, while the commercial and industrial sectors are also expanding.
• Software solutions dominate the market with over 64% share, and services are showing steady growth.
• Deployment methods like on-premise and cloud-based solutions are increasing in popularity.

However, depending on where you are located and what market you want your proptech software to target, the market situation may differ. From the illustration below, you can see that the leader in terms of the number of proptech companies founded is North America holding 56% of all proptech initiatives, only to be followed by the UK (805 companies), France (547), and Germany (342).

Proptech Software Companies Number by Country

We have reviewed important market insights. Now, let’s look at how other countries are influencing proptech software development. They are playing a big role in the global landscape.

The Proptech Market in the USA

The proptech software market in the USA is a major part of the tech sector, driven by the country’s size, population, and status as a global property leader. Key innovation hubs like New York City and San Francisco attract significant domestic and foreign investment.

Key stats:

• 60% of firms operate in the residential sector, 50% in commercial, and 12% in retail (source).
• 69% of proptech companies target B2B customers, 27% cater to B2C, and 4% serve both.
• Most startups prioritize property management for both residential and commercial markets.

The Proptech Market in the USA

The proptech software market in the USA represents a significant part of the country’s tech sector, thanks to its size, population, and global property powerhouse status. Many proptech innovations come from major tech hubs like New York City and San Francisco, which attract significant domestic and foreign investments.

Approximately 60.04% of proptech software firms in the US operate within the residential sector, 49.84% in the commercial sector, and 11.50% in retail. In terms of customer focus, 69.37% of the proptech companies serve B2B customers, 26.85% cater to B2C, and 3.78% operate in both domains (source).

Notably, most US-based proptech startups, both within the residential and commercial realm, are targeting property management.

USA Residential Proptech by Property Lifecycle Stage

Property management proptechs in the US:

• ManageCasa – automates property accounting by analyzing data and updating books in real time.
• HqO – enhances tenant experiences, helping landlords create attractive spaces.
• Zego – optimizes property management for managers.
• RentRedi – provides landlords with all-in-one property and tenant management tools.
• BuildingLink – simplifies building and tenant management for property managers.

The Proptech Market in the UK

The UK has been a key player in the proptech movement alongside the US. Currently, London remains a global proptech hub, hosting over 500 companies—more than all of Germany. Similar to the US, most UK firms focus on property management within the residential and commercial sectors, highlighting opportunities in real estate software development.

The UK Proptech Software Market by Property Lifecycle Stage

Thriving proptech startups in the UK include:

• Acasa – helps tenants manage bills and household expenses.
• AskPorter – an AI-powered platform for efficient property management.
• Goodlord – simplifies property and tenant management for landlords.
• Howsy – offers tools for streamlined landlord-tenant management.
• Plentific – provides property managers with efficient building and tenant management tools.

The Proptech Market in France

The French proptech scene is divided into three main areas: residential, commercial, and retail, with residential making up 71% of the offerings. Innovations in peer-to-peer renting and neighborhood well-being highlight the growth in residential proptech software development.

French Proptech Software Market by Property Sector

The commercial sector makes up 23% of French proptechs, mostly focusing on the B2B market. The growing demand for smart buildings and flexible workspaces showcases how a software development company can drive innovation in this space.

Startups focusing on residential real estate:

• Colonies – a co-living company offering furnished apartments with shared spaces.
• ManoMano – an online home improvement retailer that offers DIY and gardening products.
• Luko – a home insurance company that uses AI and IoT to prevent and repair damages.

The commercial sector comprises 23% of French proptechs, many of which cater to the B2B market. There is an increasing interest in smart buildings and flexible working spaces, with PropTech playing a significant role in this evolution.

3. Choose a Proptech Software Type

The next step would be identifying which type of proptech software development solution will best address the unique needs of real estate businesses. The real estate market is dynamic, and there’s no one-size-fits-all approach.

Whether you aim to improve property management, enhance tenant experiences, or bring artificial intelligence to the industry, understanding the different types of proptech software development is key. Here’s a closer look at the most common types and how they fit into the broader real estate sector:

1. Property Management Software (PMS)

Property Management Software is essential for real estate professionals who want to boost operations. PMS helps property managers keep track of tenant information, leases, maintenance tasks, and financials.

Think about it as the “all-in-one” tool for managing properties. For example, imagine a property manager who uses PMS to track rent payments, request repairs, and even send reminders to tenants—all through one platform. This user-friendly system helps save time, boosts efficiency, and leads to smoother operations for real estate companies.

Key features of PMS include:

• Simplified financial management, including automated billing and tracking of expenses.
• Improved communication with tenants and vendors through a unified platform.
• Increased operational efficiency.

2. Real Estate CRM

Real estate CRM is vital for managing customer relationships. It helps real estate agents store client data, track sales leads, and nurture connections.

AscendixRE Track all property data | Source: Ascendix

For example, a CRM can store details like a client’s preferences for the number of bedrooms or ideal location, helping agents stay organized. With real-time updates and automated reminders, agents never miss a lead, ensuring better customer service and faster follow-ups. Here’s how a CRM benefits agents:

• Centralized client data that tracks leads and manage interactions efficiently.
• Automated follow-ups and reminders.
• Sales performance analytics.

3. Real Estate Marketing Software

Real estate marketing software is designed to help real estate professionals promote properties effectively. From creating eye-catching brochures to automating email campaigns, it takes the hassle out of marketing.

For example, an agent can use this software to create a property brochure. They can share it on social media and automate follow-up emails, all from one platform.

To make the process easier, connect document generation software with your CRM and analytics tools. This lets you pull data directly from your database for marketing materials, which saves you time. Plus, it tracks campaign performance, providing insights to help you fine-tune your approach. Here’s what it offers:

• Quick creation of marketing materials.
• Social media integration.
• Campaign performance tracking.

4. Property Inspection Software

For property inspectors, this type of software helps get a thorough overview. They create customized checklists for different property types—residential or commercial—and capture photos and notes in real-time. This software reduces the chances of error and speeds up report generation, leading to more accurate and timely inspections. Here’s how it enhances the inspection process:

• Customizable checklists.
• Real-time photo capture and notes.
• Professional, branded reports.

5. Real Estate Investment Software

Real estate investment software tracks portfolios and helps analyze potential deals. Investors can use the software to calculate ROI, cash flow, and other financial metrics for properties they’re considering. This tool offers real-time data that can be pivotal in a fast-paced market, giving investors the edge they need to make quick, data-driven decisions. Key benefits include:

• Instant analytics.
• Portfolio tracking to monitor investment performance.
• Market insights to identify emerging opportunities.

6. Property Valuation Software

Property valuation software helps real estate professionals assess property values accurately using advanced algorithms and data analysis.

Whether buying, selling, or investing, reliable property valuations are crucial. For example, an agent can use this software to instantly get property values based on real-time market trends and other relevant data. This ensures that agents are always offering clients the most up-to-date information. Here’s how property valuation software stands out:

• Real-time property value data.
• Accurate valuation estimates.
• Data integration from MLS and public records.

7. Property Listing Management Software

Managing property listings is made simpler with property listing management software. It helps real estate agents upload detailed property listings. This includes photos and virtual tours. They can share these listings on websites and social media.

The software helps agents track leads and inquiries. This ensures that no potential buyer or renter is missed. Here are the key features:

• Multi-platform syndication.
• Lead tracking, helping agents stay on top of inquiries and potential buyers.
• Enhanced listing details.

8. Virtual Tour Software

Virtual tour software allows real estate agents to give clients an immersive, 360-degree tour of properties.

This is especially useful for out-of-town buyers or those unable to visit in person. An agent can create a beautiful virtual tour of a luxury property. They can share it online and track how long users engage with the tour.

Virtual Tour Software | Source: Easypano

By providing real-time insights, the software can help agents gauge interest in specific properties. Benefits of virtual tour software include:

• Immersive experiences.
• Real-time analytics.
• Global reach, allowing agents to showcase properties to buyers from anywhere.

9. Smart Building Software

Smart building software helps real estate companies run buildings efficiently. It reduces energy costs and simplifies operations.

Managers can monitor energy use and adjust heating and cooling systems. It also helps with predictive maintenance to prevent expensive repairs. Key features include:

• Energy monitoring and optimization.
• Predictive maintenance tools.
• Integrated security system management.

4. Adopt a Proptech Development Approach

Start by choosing the best development option for your needs. Consider your project requirements, timeline, budget, and other factors.

Here are some of the most effective approaches:

#1 Hire a PropTech software development company

Outsourcing proptech software development to an experienced partner ensures a high-quality product. You will benefit from their expertise. This can lead to better results for your project. This product will follow the latest standards and trends in the industry.

This is possible because proptech software development companies know the right tech stack and features for your needs. They also understand how to make your solution scalable.

Our Ascendix Tech teams have worked with leading real estate companies. Some of these companies include JLL, Cresa, Transwestern, and Stiles. We specialize in custom proptech software development, creating solutions tailored to meet specific business needs.

Benefits of hiring a software development company for your project:

• Tried-and-true high product quality
• Available for flexible hiring (e.g, dedicated team, managed delivery, or for fraction)
• Result-oriented proptech consulting (the company analyzes your business goals to provide the most relevant technical solutions)
• Increased flexibility and scalability of your proptech software
• Time savings avoiding talent acquisition and onboarding activities
• Quick access to a large pool of technical professionals
• Cost savings in the long run.

#2 Find a Chief Technical Officer/Partner

Another option is finding a tech-savvy and business-oriented partner with strong experience in the proptech industry. A Chief Technical Officer (CTO) will manage all the technical parts of your project. This allows you to focus on important tasks like funding, marketing, and sales.

You can also search on platforms like ProductHunt, LinkedIn, and Founders Network. Benefits of having a CTO or technical partner:

• Unique mind and skillset
• Keen understanding of technologies
• The same passion to create proptech software that rocks
• Delegation of technical project issues.

H4 #3 Partner with freelance development teams

Hiring freelance developers through platforms like UpWork, Fiverr, or Outsourcely is another approach to proptech software development. Freelance teams can provide affordable rates, a broad talent pool, and faster project delivery.

However, this option has potential downsides, such as communication issues, lower product quality, security risks, and missed deadlines.

#4 Build proptech software yourself

If you have solid technical skills, you can handle custom proptech software development solo. This approach lets you build the foundation of your software while translating business requirements into functional features.

You may still need additional specialists like DevOps engineers or QA testers to handle specific aspects of development.

While this option can be cost-efficient, it requires significant time and effort. You’ll need to allocate resources and stay hands-on throughout the development process.

Each approach has pros and cons, so weigh your options to make an informed decision that aligns with your business needs and goals.

5. Embrace the Latest Proptech Trends

The real estate industry is changing fast, thanks to proptech software development. New tech is making it easier to manage tasks, improve efficiency, and offer better services. So, we believe that it’s important to keep up with the latest proptech trends and use them to your advantage.

1. Artificial Intelligence

AI makes things faster and easier for landlords and tenants. It uses smart programs to help property owners find the best renters quickly, saving time and effort.

With AI, tasks like tenant selection happen faster and with fewer mistakes. This makes it an essential part of proptech software development in 2024.

2. Big data and predictive analytics

Big Data is all about using information to make better decisions. For real estate, it means businesses can see trends, understand customer needs, and improve their marketing and sales strategies.

When used in proptech software development, Big Data helps companies predict what buyers and renters want. This makes planning and decision-making easier and more effective.

3. Building Information Modelling (BIM) technology

BIM technology answers big questions about construction projects:

• How a building will be built
• How much time it will take to finish the development
• How much it will cost and so on.
• Answers can be generated by analyzing data from similar cases. This saves time for property managers and changes the real estate market.

4. IoT with drones for 360-view display

The Internet of Things has taken over many market areas. Now, it is entering the proptech sector with many benefits.

IoT makes building operations easier. It does this by monitoring and storing important data. This data comes from sensors, trackers, equipment, weather, and other devices.

Additionally, IoT helps tenants save energy by automatically tracking historical data from installed devices.

In 2021, PropTech startups began massively building advanced 360-view display drones that provide even more customer-oriented data.

5. Chatbots for customer-focused interaction

Chatbots are like virtual helpers. They answer questions about properties instantly, so tenants don’t have to wait for a reply.

For landlords, chatbots save time by handling common questions. They also improve customer service and help close deals faster. That’s why chatbots are a big part of proptech software development today.

6. Contactless Software Entry System

Touchless technology has become a must-have, especially since COVID-19. These systems let people check into properties, manage guests, and control smart home devices without touching anything.

Platforms like Airbnb use contactless check-ins to save time and keep things safe. Companies like Latch create smart solutions, like keyless entry and delivery management.

Smart access, guest and delivery management, connectivity technologies, smart home and sensors, and personalization are among its core proptech software development offerings.

Our PropTech Software Expertise

At Ascendix Tech, we have 25 years of experience in CRM consulting, over 10 years of expertise in delivering technology solutions for real estate companies, and 10 years of custom software development background.

This tried-and-true combination allowed us to build our own proptech software products and help dozens of large market players meet their business goals through high-quality technical implementation and serve thousands of clients around the world.

Bottom Line

Proptech software development is a relatively new, but extremely promising direction for real estate businesses and clients helping both parties revolutionize their interaction and take the real estate services market to a new level.

The process of building proptech software is a complex of skillsets and latest trends combined to solve real problems of all parties. At Ascendix Tech, we have solid experience in proptech software development and would be glad to help turn the challenges of your company into tailor-made technology opportunities that will help you grow and scale.

If you want to discuss your project idea, feel free to check our case studies and contact us. We will be glad to engage in a discussion to better understand your goals and objectives and if appropriate, provide you with a free estimate of your proptech software development requirements.