Real Estate Software Market - Forecast(2023 - 2028)
Real Estate Software Market Overview
Global Real Estate Software market is forecast to reach $20.6 billion by 2026, growing at a CAGR of 5.7% during the forecast period from 2021 to 2026. Real estate software are the tools that enable customers with certain facilities like expense tracking, Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), Property Management, Lead generation software, video editing, open house management software and other tools streamline listing and simplifying transaction management.
Urbanization and surge in adoption of new software tools for accurate data software, decreased risk of errors and other facilities are factors driving the growth of the market. The surge in adoption of new software to keep the records successfully along with growth in the residential and commercial real estate activities and vendors are driving the growth of the market. Rising technological advancements such as implementing artificial intelligence, cloud and many others in real estate business along with improved business workflow capability are acting as major driving factors towards significant market growth of real estate software.
Moreover growing global population as well as increasing costs of public properties is also impacting the market demands towards real estate software. High developments towards smart cities are causing rising demands in the real estate software market.
- Cloud based software is expected to have a significant growth during the forecast period in the real estate software market due to its capabilities of providing better scalability and cost efficient features.
- Key players such as Microsoft Corporation and Oracle Corporation have been helping towards significant market growth of real estate software in North America.
- Rising technological growth along with increasing the business productivity standards are some of the major driving factors towards significant growth of real estate software market.
Real Estate Software Market Segment Analysis - By Deployment Type
Cloud deployed software is expected to have a major growth at 8.7% in the real estate software market during the forecast period 2021-2026. Deployment of cloud real estate software have been increasing across the real estate companies due to its capability of providing much more efficient and faster data access and property management, thus improving the workflow productivity. Moreover, saving of data with cloud deployed models helps in managing the massive amounts of data more efficiently with encryption and higher security standards.
Cloud deployed software eliminates the need for additional hardware compared to on premise models, which makes it a cost efficient solution, thus causing higher adoptability from small scale industries. Further, the capabilities of upgrading as well as downsizing the storage capacity as per requirements and pay as you use features are collectively making it a better alternative than on premise models, thus causing significant market growth of cloud deployed software in the market.
Real Estate Software Market Segment Analysis – By Application
Rising preference for homeownership, hike in residential rental properties, growth in modern infrastructure building, and expansion of commercial space demands the necessity for real estate software which facilitates associated task tracking such as storage of the legal contract documents, property management and transaction updates and history, and ease of property account handling.
All these factors generate huge real estate software market demand in residential sector which is evaluated to increase at a CAGR of 7.5% during the forecast period of 2021-2026. The opening of various retail shops all across the world also requires adequate knowledge about a particular property and lease buildings and property management services and solutions effectively assist the target customers through better ERP and data analytics. This will drive the commercial market segment.
Real Estate Software Market Segment Analysis - By Geography
Real Estate Software Market Drivers
Improves business productivity
The demands towards real estate software have been rising due to its capability of improving business productivity standards, thus acting as a major driver towards the significant market growth. Since the real estate business has to work under various areas such as websites, online advertising, social media and many others, thus causing higher demands for efficient real estate management tools. Moreover, creating as well as maintaining separate accounts for each work area becomes time consuming manually due to increase in number of clients and requirements, which causes major adoption for real estate software’s by the organizations, thus improving the business productivity standards.
Usage of real estate software has been growing widely as it helps in managing the web pages of the real estate companies more easily and efficiently with changing property related information within a single command. Since organizational structure plays a vital role in increasing the productivity levels of the business, deployment of such software help in ensuring high performance management as well as generation of daily reports faster. Such factors help the employees to ensure that there is no duplicity of work, scheduling of meetings as well as inspections and many others, which collectively improves the operational workflows across the organization.
Rising technological advancements
Real Estate Software Market Challenges
Real Estate Software Market Landscape
- In April 2020, MRI Software introduced enhancements to its MRI Living, MRI Work as well as financial suites to help its clients navigate the challenges of covid 19 crisis. This development will be helping the owners as well as operators of both residential and commercial properties to adapt towards the changing behaviors and market conditions due to the pandemic.
- In November 2019, Integrated Management Systems has announced the launch of a unique property management and sales software solution named Property Raptor. This solution makes use of artificial intelligence in order to automate the repetitive tasks as well as managing vast data volumes, maintaining visibility of global resources and inventory along with streamlining the work processes.