Development

Trends

February 19, 2025

PropTech development trends for 2025: Digital transformation in Real Estate Industry

The real estate industry has undergone significant development and transformation in recent years. The rapid integration of innovations can explain this. The property management landscape is showing quite positive dynamics, as it is subject to the constant application of new technologies such as AI, VR, and IoT, which are significantly revolutionizing commercial real estate. From this, it follows that the real estate sector needs to optimize many processes that will improve interaction with customers and open a new stage for businesses related to real estate, which we will consider in detail later.

The real estate market is forecast to grow at a CAGR of 2.69% until 2029, leading to a market volume of US$727.80tn. This growth is driven by the high demand for residential and commercial properties and the increasing population.

The central forecasts that are worth knowing for the real estate industry

Sustainable construction and environmental technologies. Developers and investors are increasingly focusing on energy-efficient buildings, the use of renewable resources, and reducing their carbon footprint.
Flexible spaces and multifunctionality are popular. Mobile workspaces and coworking spaces are becoming increasingly relevant to many consumers. A successful combination of comfort and workspace characterizes them.
Alternative segments of the real estate market. Demand for specialized property, such as student accommodation, senior residences, and other commercial business facilities, is also growing.
The concept of smart cities and urbanization. The growth of the urban population stimulates the development of infrastructure using innovative technologies to improve residents' quality of life and property management.

Relevance of PropTech solutions for business efficiency. Technological solutions in the real estate industry are becoming integral to automating processes, reducing financial risks, and increasing trust between market participants.

The latest and innovative trends in real estate development are also closely related to introducing various property technologies to ensure the quality and speed of most basic processes, such as advanced analytics or overall company efficiency.

Therefore, with the growth of the real estate sector, many real estate professionals need to be aware of the latest innovations and technologies as proptech trends can give business owners the value of their offerings to the client and commercial sector. In our publication, we will give an overview of the main technological trends, as well as consider how to make PropTech software smarter, more efficient and profitable.

Key PropTech Trends and Software Implementation

Virtual Tours Using VR & AR Technology

Property owners can significantly improve the process of presenting properties through virtual and augmented reality. The presentation of multi-million dollar projects should align with the development's specifics and be more interactive and accessible to prospective customers.

VR allows for immersive 3D property tours, an advantage for real estate professionals and agents. It will save time for all parties in the early stages of negotiations. Meanwhile, AR provides additional real-time information by overlaying digital data on absolute space, such as the surrounding infrastructure.

Why should businesses pay attention to VR/AR?

Integrating these technologies into real estate software development will allow real estate agents to reach a wider audience, which includes foreign investors and buyers who cannot physically visit the properties. In addition, VR/AR significantly saves property owners time and resources, reducing unnecessary viewings and making the communication process more efficient.

Virtual tours also increase the seller's credibility, as customers can see the property in accurate, available details. The user engagement rate is expected to rise to 56.5% by 2029, confirming that the real estate sector will be an integral part of this growth.

This has a direct impact on real estate agents, as real estate software provides them with the tools to engage clients more effectively and streamline internal workflows. The use of VR/AR will distinguish the real customer segment and reduce the percentage of failed transactions.

Technical aspects of implementation

Successful implementation of real estate software should provide businesses in the industry with a solid foundation for interaction with clients and investors:

VR tours. They are created using a 360-degree camera or 3D rendering of premises. These models can then be integrated with Matterport or Oculus.
AR navigation. It involves including additional information about an object in mobile development through the camera of a smartphone or tablet. It can be a simple display of characteristics or complex interactive interior models.
Cloud services. They should be used in real estate software to process and store VR/AR data and be supported in the web version and mobile application.

360 degree 3D virtual tour for Property Selection (Artkai’s case study)

Kamerton is a premium eCommerce website for selling real estate developed by the Artkai team. One of its features is an interactive 3D model for choosing apartments. In practical use, the idea was to design an experience that would allow potential buyers to play with virtual buildings and make the complicated process of choosing an apartment entertaining and sufficient to make a choice.

Project features:

360° visualization. Buyers can view apartments in interactive 3D flyower.
Intuitive UI/UX. The design is focused on high user engagement and ease of navigation.
Flexible customization. Visitors can change the home’s settings and view it using different design options.

Thus, this trend is especially important for real estate businesses directly related to residential and commercial properties. When it comes to the practical implementation of these technologies in real estate software, we recommend that you first refer to our Complete Guide, where Artkai specialists have identified the best practices based on years of practical experience.

Smart IoT Property Maintenance

IoT technologies are dramatically changing the real estate industry. However, automation, energy efficiency, and security remain the main challenges.

Commercial real estate is equipped with devices and sensors that allow for real-time building management, and the same is true for private residential properties. IoT solutions help to create intelligent, environmentally sustainable, and highly functional buildings that meet the modern requirements of technological development.

IoT applications in the real estate sector

Integrating IoT solutions into real estate software gives businesses a competitive advantage. Real estate professionals can significantly reduce building maintenance costs, optimize energy consumption, and improve customer experience.

For example, smart homes allow residents to control lighting, temperature, and security using a mobile app or voice commands. In addition, IoT systems provide adequate protection and can respond quickly to potential dangers through face recognition, motion monitoring, and analytics.

In turn, 5G networks can facilitate faster facility management with remote control using various devices. Our recent article, IoT Applications for Smart Buildings, covers IoT implementation, benefits, and real-life cases.

Therefore, IoT solutions in real estate can significantly improve real estate processes, automate fundamental business operations, and reduce the costs of managing objects. After all, sensors and artificial intelligence algorithms can participate in energy consumption control systems, predict maintenance, and ensure a decent level of security.

Technical features of implementation in real estate software development:

Smart home automation allows remote lighting, security, and climate control using IoT sensors that analyze the room, energy consumption, and face recognition technologies.

This can be implemented through AWS IoT or Azure IoT Hub integrations for data processing and storage. IoT protocols, such as MQTT, Zigbee, Z-Wave, or Wi-Fi, can also exchange data between devices.

IoT-based systems

They are presented as motion sensors and face recognition technologies for access control with real-time event tracking.

This is being implemented from an IT perspective:

Computer Vision. Through OpenCV, TensorFlow, and YOLO for face and object recognition.
RTSP, WebRTC network protocols for video streaming.
Integration with Access Control APIs and databases for authorized persons' access.
SMS, push, and e-mail notifications in case of threat detection.
IoT sensors and controllers LoRaWAN, Modbus, and BACnet for energy consumption diagnostics.
Big Data and AI analytics based on Apache Kafka and Spark.
Automation related to energy consumption based on API integration with Nest and Ecobee.

Big Data Analytics and Predictive Modelling

Proptech's trend of implementing Big Data Analytics and Predictive Modeling allows it to analyze historical data and forecast a high-quality business development strategy.

This has some advantages:

Deep market research: By using economic, social, and infrastructure data, companies can more accurately predict changes and communications related to property managers and other property technologies.
Identification of business prospects—Automated analysis helps to identify promising areas for development or purchase in the real estate market.
Reducing risks—The main purpose of analytics is to present historical data, which can be used to take the next steps related to property management in the real estate sector.
Optimization of finances will allow property managers, agents, and developers to assess the market situation and build a financial component.

Big Data Analytics and Predictive Modelling for Business

Adherence to and application of predictive modeling with analytics can provide investors, property managers, and real estate professionals with a basis for strategic decisions.

In the real estate industry, in specific cases, this can take the form of questions and their answers regarding infrastructure construction, such as business centers or other commercial premises. Also, analytics can provide a basis for predicting the growth of property values in certain areas so that timely investments can be made.

Big Data Analytics and Predictive Modeling in Real Estate Software

ETL processes collect data from state registers and geolocation services.
Integration with government and commercial API databases to obtain information about the property market.
IoT sensors are used to collect data on the operational characteristics of buildings.
AI and ML will be used to identify patterns in market changes.
Big Data platforms based on Hadoop, Apache Spark, and Google BigQuery for data analysis.
Use of Tableau, Power BI, and Looker dashboards to visualize analytics.
Building GIS maps to analyze specific locations.
AI assistants to generate forecasts and recommendations.

Blockchain for Transparent Transactions

Blockchain significantly impacts modern property management technologies in the real estate industry. It ensures the transparency, security, and efficiency of financial transactions. In recent years, this technology has been one of the most essential proptech trends, eliminating the traditional bureaucratic side.

The main process is implemented using a distributed ledger, where all transactions are recorded unchanged, protecting them from fraud. Support for smart contracts automates transaction execution, and there is an option to tokenise real estate to increase market liquidity.

Key benefits for business:

Transparency: All transaction data is stored unchanged, allowing market participants to verify information without the need for intermediaries.
Security - each transaction is protected by cryptographic algorithms and verified by a decentralized network.
Reduced costs - the role of banks, notaries, and intermediaries is reduced in this process.
Fractional Ownership - thanks to tokenization, investors can buy shares of real estate.

The technical side of development:

Using Ethereum, Hyperledger Fabric, or other blockchain platforms to record property transactions.
Proof-of-Work (PoW) or Proof-of-Stake (PoS) to verify transactions.
Development of property registers on the blockchain.
Integration with APIs to check the status of transactions.
Automatic payments are provided through cryptocurrency wallets or stablecoins.
The use of ERC-20, ERC-721, or ERC-1155 standards for creating tokenized assets and further trading on blockchain exchanges.
AES and RSA encryption to protect the personal data of property owners.
The use of multi-signature authentication.
Biometric authentication.

The use of blockchain is a new level of security because the result is a decentralization of the market, with many simplified processes. Now, investors can buy shares of real estate in tokenized form, which will increase their liquidity and allow a smaller segment to enter this sector. In addition, the use of smart contracts reduces the need for intermediaries, which is critically important in international transactions.

AI

The real estate industry is being influenced by AI technologies, which are represented by changed approaches to managing the sector. AI covers document analysis, property management, and virtual assistants.

One of its most important applications is in software development, where there is a need to analyze large volumes of market data with the essential information that can be extracted from the analytics reasonably quickly instead of researching the issue for weeks.

AI also improves risk assessment of historical patterns and market fluctuations. In addition, AI assistants and virtual bots improve customer service.

Business benefits:

Automation of real estate valuation for future sales with value forecasts.
Virtual AI assistants - NLP-enabled bots process customer requests and provide 24/7 availability in case of problems.
Cost optimization: AI analyzes data from IoT sensors to make further predictions on savings, rent, or utility management.
Document management - processing essential documents, analyzing and highlighting the most important points.

Technical applications in the development of real estate software:

Automated real estate valuation using ML models for market price analytics will improve the user experience for property managers.
Integration with Big Data platforms to collect historical data.
APIs are used for systematic analytics updates.
Connecting AI assistants using NLP to process customer requests.
CRM systems are integrated to interact and communicate between parties in the real estate market.
Apply predictive maintenance to minimize equipment failures.
Computer Vision and NLP will analyze key information from contracts.

AI technologies are an integral part of the proptech trend in the real estate industry. Its use can completely change the approach to many processes and significantly simplify them, increasing the company's efficiency. Learn more about the peculiarities of developing a customer-centric AI application and a detailed analysis of its technologies and capabilities in our Roadmap, where Artkai specialists have prepared recommendations based on real successful experiences.

Sustainable and Smart Building Solutions

This proptech trend is aimed at the real estate industry, which emphasizes sustainability and automation. Sustainable and innovative building solutions enable property management with reduced energy consumption and infrastructure improvements.

Integrations with IoT and AI make this possible, and the negative environmental impact is minimized.

Benefits for real estate companies:

Reduced energy costs with the ability to automate resource consumption management.
Compliance with LEED and BREEAM standards for increased market liquidity.
Intelligent space management using IoT sensors.
Using the above technologies, developers can increase the market value of residential properties.
During the construction process, costs can be reduced by automating the consumption of resources at the final stages.
Compliance with environmental regulations.

For real estate software companies, this process is characterized by several factors:

Integration into Smart Grid management applications to automatically regulate power consumption.
AI data analytics to predict costs and save resources in the experience of property owners.
IoT integration for building condition monitoring.

*The appropriate technology stack is chosen to implement these processes, depending on the specifics.

Fractional Investment Platforms

The practice of using fractional investment platforms in the real estate industry allows property managers to purchase a share of real estate instead of buying the entire property.

This makes it more affordable for investors with less capital. This property technology is simpler from the financial side and more liquid on the market.

Advantages of private equity

Possibility of smaller investments for investors.
Diversification of an investor's portfolio, as it is possible to distribute funds between different properties.
High liquidity of assets, with the possibility of tokenization of shares that can be sold on specially developed platforms.
Expansion of the property management process for a broader range of real estate companies or property managers who were previously unable to invest in real estate.

First of all, fractional investment platforms are a good opportunity to attract capital in a niche. This will allow investors to invest financial resources in a certain object without the need for its full redemption. It is also an advantage due to the decentralization of the market and its accessibility to a wide range of participants, including small investors and private companies.

Technical features:

Tokenization of assets via blockchain.
Application of smart contracts.
Development of new marketplaces for the purchase/sale of real estate.
Integration with financial APIs.

Digital Twin Technology for Real Estate

Digital Twin Technology changes the previously established vision of the real estate industry's approach to management. It enables the creation of digital copies of buildings for analyzing, testing, and forecasting their condition.

One of the most compelling reasons to invest in this is the opportunity to improve asset monitoring and increase operational efficiency. In this case, the continuous collection and analysis of company data provides the basis for predicting possible malfunctions.

In addition, digital twins play an important role in creating "smart cities," where big data analysis helps optimize energy consumption, increase the comfort level of transport networks, and develop real estate sustainably. This is an economic benefit for owners of significant real estate properties.

Business benefits:

Visualisation of the digital model for performance forecasting.
Identification of potential problems before the actual construction phase.
Optimisation of costs even before operation.
Improved planning of reconstruction in pre-existing facilities.

Technical functionality for software development:

Connected data collection from IoT sensors.
Big Data and AI analytics for building forecasting.
3D modeling and integration with BIM systems.
Integration with cloud platforms for remote user access.

Thus, Property technology is completely changing the approach to traditional property management. After all, what seemed impossible 10 years ago is now a prop-tech trend with numerous automation, AI analytics, and IoT solutions for remote management.
It should be noted that PropTech solutions can be implemented in many areas. In our article Top 6 PropTech Solutions Built for Our Clients, we have described in detail the specifics of real estate industry developments.

Conclusions

2025 has become a year of opportunities for real estate companies operating in property technology to actively implement new digital solutions. This will significantly optimize property management and increase the business efficiency of customer interaction. Introducing AI, IoT, and blockchain-based technologies can make property management more efficient. Therefore, adopting these proptech trends will increase companies' competitiveness.

Suppose your business is focused on innovation and profitability, and you are looking for a reliable partner to develop or modernize your PropTech product. In that case, our team is ready to offer a first-class solution. We will help you implement advanced technologies to increase property management efficiency, reduce operating costs, and improve customer interaction. Contact us, and we will create an optimal solution for you that is adapted to the needs of your business.