Top 12 Proptech Trends for Professionals and Companies to Follow in 2025

As we step into 2025, the proptech arena remains dynamic and full of transformative potential.

Proptech trends like AI, machine learning, predictive analytics, and big data have become viral tools previous year. And they promise to transform the real estate sector. Adopting these technologies can enhance property management, investment decision-making, and customer experience.

Let’s explore the Top Proptech Trends to Follow in 2025.

Top PropTech Trends in 2025

Future trends in proptech include AI for precise property valuation, virtual assistants for smooth workflows, and predictive analytics for market insights. Additionally, smart matching will pair buyers with properties efficiently, while IoT and smart building tech will boost energy management, security, and tenant comfort.

The global PropTech market size was valued at USD 33.57 billion in 2023 and is anticipated to expand at an annual growth rate (CAGR) of 15.8% reaching USD 133.05 billion by 2032. With the emergence of new technologies, the investments and number of products are going to steadily grow in the next years.

Here’s a quick overview of proptech trends to follow in 2025:

These proptech trends are transforming how we buy, sell, and manage properties — with speed, precision, and smarter solutions.

Visual representation of Intelligent Document Processing in real estate | Source: Ascendix

AI Proptech Trends to Follow in 2025

Throughout the previous year, we at Ascendix have deepened our expertise in AI and its transformative potential in real estate.

So, we’re sharing key AI trends that we believe will shape proptech in 2025.

AI Proptech Trends

AI Chatbots

The future of proptech includes AI-powered chatbots and virtual assistants. Tools like Hyro, STAN AI, and Roof AI use natural language processing (NLP) to understand and respond to tenant questions anytime, day or night. These AI solutions can also handle requests and assist with finding the right property faster and more efficiently.

AI chatbot | Source: Ascendix

For proptech software development, AI chatbots mean:

• Integration of AI chatbots and assistants with other solutions like property management tools and smart building systems;
• AI chatbots will play a greater role in lead generation and qualification by engaging with leads, collecting contact information, and storing it right in CRM (when integrated with the latter).

AI Real Estate Search

Tired of endless filters when searching for a property? Powered by natural language processing (NLP), AI real estate search allows users to explore interactive maps and get the most accurate results.

Example of AI Chatbot for Property Search by Ascendix

For proptech software development, AI real estate search means:

• Going beyond basic filters when searching for a property. Instead of toggling numerous filters users can type in their query in a very conversational way as if they were talking to a friend (or ChatGPT). For example, typing something like “I’m looking for a cozy 1-bedroom flat in Dallas for no more than 150 dol a night, close to the center with good transportation around” would immediately pop up the most suitable options on the map. Even more than that, you would be able to ask direct questions about the properties you are interested in, turning the AI engine into a support agent as well. We envision this trend to be prominent for property marketplaces and rental portals like Airbnb. Interestingly, Zillow has already announced such a feature for their platform so other platforms will surely catch up in 2025;
• The ability of users to conduct complex search queries and look for unconventional or niche properties in new ways – for instance, with the use of a voice-powered real estate search or providing property descriptions without specifying particular details. In the latter approach, AI reads between the lines to present only perfectly matching options, making it ideal for home seekers. Realtor’s Dream Home solution has taken the initial steps in this direction.

AI Property Price Valuation

Such a feature is extremely useful for landlords and property owners. It allows users to compare properties, establish precise pricing, and predict the properties and locations that renters or sellers are most likely to prefer.

What does AI Property Price Valuation mean for the proptech forecast?

• AI property price valuation will become a vital feature of real estate marketplaces;
• It can also be a part of AI property valuation tools, helping real estate professionals conduct property appraisals faster.

Benefits of AI real estate appraisals | Source: Ascendix

AI User Preference Analysis

This proptech trend will highly add to the personalized user experience and enhanced property search. Based on historical data, AI can offer more accurate search results. Let’s say a user looked for a property for non-smokers and a parking lot – next time, the AI system will automatically consider these preferences in subsequent searches without the user having to specify them again.

For proptech software development, the trend means:

• Real estate marketplaces with AI algorithms that utilize historical data and provide relevant results;
• Proptech developers will collaborate with data providers to develop and implement innovative solutions for AI User Preference Analysis.

Property recommendation system | Source: Ascendix

AI Demand Forecasting

AI demand forecasting enables landlords and property operators to predict the demand for their properties based on various factors such as seasonality, property market trends, booking history, and more.

• AI demand forecasting will become a vital part of any real estate marketplace;
• AI-powered insights into future demand can be used to tailor marketing campaigns to specific demographics and target audiences with relevant properties;
• AI demand forecasting will also become a part of investment tools, helping users identify properties with the highest demand, hence revenue potential.

AI Automated Translation

AI automated translation doesn’t only help real estate players bridge linguistic gaps but also facilitates seamless communication and collaboration in times of globalization and cultural diversity.

• In the future of proptech, AI automated translation will become a part of the real estate tech stack used by property developers and proptech investors that want to access global markets;
• It will also become a part of real estate marketplaces operating on the international level;
• As an add-on functionality in other tools like document management systems and AI lease abstraction apps, streamlining the translation of legal documents and contracts.

Co-Renting & Co-Living Marketplaces

Call it ‘adult dorms’ or ‘community living,’ the reality is still the same – co-living and co-renting are a proptech trend to watch amidst rising home prices and inflation. Most co-living platforms like Allihoop, Common, and Badi act as real estate marketplaces where users can look for a property, learn more about the community life, and get in touch with the property operator.

For the future of proptech, shared spaces and customized experience mean the increasing need for:

• Smart home automation to make one’s stay comfortable;
• Smart building systems, since more tenants equals higher resources consumption;
• Managing co-working and ‘co-leisure’ spaces will require property management tools with advanced messaging & booking functionality and integration with event management tools in some cases;
• Since managing co-renting spaces includes a bigger number of properties management tasks, some tasks like rent collection and maintenance request processing will require automation;
• Co-living and co-renting platforms often function as mid-term rental portals, which, in turn, calls for AI property matching algorithms, AI lease abstraction, and chatbots that are ready to process tenants’ requests and inquiries 24/7.

Rental Property Management & Automation

Automation is rapidly transforming property management, making operations more efficient and cost-effective. Property management platforms are now offering real-time solutions to property owners, reducing manual work and improving profit margins.

Key functionalities of automated property management:

• Portfolio Management: Enables property managers to handle larger portfolios efficiently, with automated tasks like tenant communication and leasing.
• Automation of Routine Tasks: Automates rent collection, maintenance requests, and accounting, reducing the workload for property managers.
• Real-Time Data and Reporting: Provides up-to-date analytics and performance tracking for better decision-making.

The property management market is expected to exceed $52 billion by 2032.

Most Common Services in Property Management | Source: Ascendix

Fractional Investment and Crowdfunding Platforms

The democratization of real estate investment will stay a part of top proptech trends next year due to the lower investment barriers it offers, higher diversification, greater liquidity, and increased flexibility.

The worldwide crowdfunding market, valued at $10.8 billion, is projected to experience a significant surge, reaching an estimated $250 billion by the year 2030. Yeap, according to the proptech forecast, crowdfunding platforms like PeerStreet and RealtyMogul, as well as fractional ownership platforms like Picaso will face growing competition.

For real estate platform development, this particular proptech trend means:

• Higher focus on data analytics functionality (powered by AI in most cases);
• The need for AI legal compliance analysis and AI contract summarization modules;
• Streamlined due diligence and risk assessment processes;
• Increased emphasis on digital security.

GreenTech and ESG

Considering that approximately 40% of global carbon dioxide emissions come from the real estate sector, it’s no wonder that the future of proptech will include solutions promoting greater transparency in ESG practices.

Proptech sustainability solutions poised to achieve the highest popularity in 2025 are:

• Energy efficiency technologies aimed to reduce energy consumption, hence carbon emissions;
• Renewable energy sources, coupled with advanced technologies for their efficient management;
• Smart building systems for enhanced resource utilization and operational building efficiency;
• ESG data collection platforms for real-time monitoring and reporting of environmental, social, and governance metrics.

IoT and Smart Home Automation

With the growing focus on energy efficiency & sustainability and personalized living experiences, IoT and smart home automation will be an irreplaceable part of any property that aims to optimize resource utilization, enhance user comfort, and contribute to a sustainable future.

For proptech software outlook, this trend means:

• The rise of advanced property management systems that integrate with IoT and smart home automation devices, enabling real-time monitoring and control of building systems;
• Predictive maintenance analytics – with IoT sensors, property operators can monitor the equipment and building infrastructure in real time and address potential issues before they escalate;
• Integration of renewable energy sources such as solar panels and smart grids;
• Higher focus on connectivity between various smart devices within a property for user-friendly experience.

eSigning

Generally, the digital signature market is expected to experience a Compound Annual Growth Rate (CAGR) of 20.8% in value from 2023 to 2033. Currently, the market is dominated by DocuSign – the company’s share is 67.6% globally.

ESigning will stay a part of any proptech solution that implies real estate deal management. With eSigning, documents can be signed remotely in minutes, expediting the deal closure and eliminating the need for face-to-face meetings.

For real estate software development, eSigning as a proptech trend means:

• Increased demand for individual eSigning solutions or proptech software with eSigning modules, especially if we’re talking about document management systems;
• Building an individual eSigning solution will require further integration with other systems, such as crowdfunding platforms, or document management platforms;
• Some eSigning solutions might come with biometric authentication for enhanced security.

Proptech Investment Trends in 2025

The global proptech market is expected to reach $32.2 billion by 2030, growing at a 6.5% CAGR.

Looking ahead, various forecasts suggest continued expansion. For instance, Fortune Business Insights estimates the market will grow from $36.55 billion in 2024 to $89.93 billion by 2032, indicating a CAGR of 11.9% during this timeframe.

Proptech Market Size

AI and Machine Learning

During the first half of 2022, the proptech sector experienced an AI-driven surge, propelling investments in both equity and debt to surpass the $8 billion milestone. Notably, 70% of all transactions were directed towards AI startups.

Currently, investors are increasingly directing their capital towards specific applications of AI and machine learning within proptech, with the biggest spotlight on areas like property valuation, predictive maintenance, and personalized user experience.

With 64% of businesses incorporating AI to boost productivity and shape the proptech outlook, the optimistic forecast for returns is fostering high expectations among proptech venture capitalists.

Sustainability Technologies

Did you know that to achieve the net-zero goals by 2050, the global annual investment in energy-efficient buildings must surpass $500 billion between 2026 and 2030?

And while real estate will continue solving the greenhouse dilemma (real estate is responsible for around 40% of global carbon emissions), we should expect higher investment in sustainability solutions like renewable energy sources, smart energy management systems and building automation systems, all powered by AI and IoT.

Meanwhile, sustainability efforts extend to the realm of construction, with investments flowing into proptech solutions like energy intelligence platforms and ESG data analytics platforms. Sustainability technologies have been a hot topic at major proptech conferences over the past few years, so we should expect further GreenTech development.

Co-Renting & Co-Living /Fractional Ownership Platforms

What we’ll see in 2025 is the rise of investment in affordable housing, hence the advanced development of co-renting and co-living real estate marketplaces as well as fractional ownership investment and crowdfunding platforms with AI-powered functionality.

In the first quarter of 2023, Savills and Savills Investment Management conducted a survey among European investors, collectively managing assets worth over €1 trillion. The survey revealed that 38% of these investors are currently involved in Co-living investments. Meanwhile, 51% of European investors intend to venture into co-living investments over the next three years.

If we look at the UK co-living statistics and compare the pre-pandemic number of co-living projects submitted for planning, we’ll see that plans for a further 12,150 beds have been submitted, indicating a more than doubling of activity.

Meanwhile, in the second quarter of 2023, the American multi-housing sector, which includes both multifamily and single-family rented homes, along with purpose-built student accommodation, witnessed an investment of €8.5 billion, surpassing the €7.8 billion invested in offices during the same period.

This particular proptech investment trend can be explained by the pressing need for affordable housing solutions driven by escalating housing costs. For instance, in 2021, approximately 22 million households in the United States grappled with the financial burden of housing costs, marking an increase from 2019. Meanwhile, a survey conducted in 2022 revealed that over one-third of individuals who were renting did not own a home due to financial constraints.

Smart Home and Building Automation

Generally, smart home and building automation offers stable and lower-risk investment opportunities compared to other proptech investment trends.

As per projections, the smart home market is anticipated to exhibit a compound annual growth rate (CAGR) of 11.43% from 2023 to 2028. This growth trajectory is poised to culminate in a projected market volume of $231.6 billion by the year 2028.

Meanwhile, the most popular software to invest in will be IoT home automation systems that personalize customer experience and AI-powered predictive maintenance systems that help property operators and landlords enhance operational efficiency.

How Can Ascendix Help You Stay at the Forefront of Proptech Innovation?

As a trusted ally committed to empowering real estate businesses, both proptech startups and industry leaders like JLL, Ascendix stands poised to elevate your journey in proptech innovation.

Why Ascendix?

• We’ve been actively involved in commercial real estate for 2 decades, delivering custom proptech solutions that meet the evolving needs of our clients;
• We proudly boast authorship of 17 proptech CRE products;
• Leveraging a global delivery network of 5 international offices, Ascendix offers a strategic advantage, optimizing your budget and ensuring efficient project delivery.

How can we help?

• We can customize your software or build a fully new mobile or web proptech solution from scratch, conduct a thorough audit and test it;
• Ascendix offers consulting services in real estate business automation, guiding you to discover a digital solution perfectly aligned with your workflows;
• We know how to empower your proptech software with smart API integration, including AI.

Don’t miss the latest proptech trends – contact us directly or book a free proptech call to learn which proptech solutions can revolutionize your workflows and keep you ahead.