Property Management Software Market Size, Share & Trends Analysis Report By Deployment (Cloud, On-premises), By Solution (Software, Services), By Application (Residential, Commercial), By End-use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global property management software market size was estimated at USD 5.51 billion in 2023 and is expected to grow at a CAGR of 8.9% from 2024 to 2030. The market is anticipated to grow owing to increased demand for web-based services, such as software as a service (SaaS). SaaS-enabled PMS streamlines daily operations like accounting, tenant tracking, and building maintenance. These solutions provide a centralized platform for property management, enabling oversight of tasks such as tenant needs and maintenance. Key features include online document storage, financial reporting, accounting capabilities, maintenance tracking, electronic lease agreements, and integrated banking services.

Additionally, compliance with various local, state, and federal regulations is a critical aspect of property management. Property management software (PMS) ensure compliance by providing tools for tracking lease agreements, managing legal documentation, and staying updated with changing regulations. This capability is particularly important in regions with stringent regulatory environments, where non-compliance can result in significant penalties. The need for regulatory compliance is driving property managers to adopt software solutions that facilitate adherence to legal requirements.

In recent years, PMS solutions have shifted from manual to automatic management. The automated PMS solutions have improved the PMS system functioning by diminishing human errors and allowing property managers to assign tasks efficiently to avoid interruptions in service. An automatic PMS helps reduce the time taken to respond to complaints and grievances of tenants or owners. Also, it simplifies property management procedures by facilitating rent collection processes, lowering communication gaps, tracking finances, and storing and leasing documents and contracts, among others.

Whereas, in traditional ways of property management, the data is documented manually using Notepad, Microsoft Excel, or other spreadsheets, which makes the process slow, inefficient, and prone to errors. Also, landlords either manage their estate themselves or hire third-party property managers, which involves more workforce and time investment. Thus, PMS was formed to evade human errors and streamline work through automation. The easy availability of PMS has automated and simplified the work of owners and estate managers.

Moreover, PMS solutions and computer record-keeping have significantly augmented the productivity of hospitality industries by updating and centralizing multiple computers and device records. Furthermore, PMS solutions can be customized as required by the hotel and hospitality industries to enhance further ease of operations, including check-in and check-out, hotel inventory supply management, bookings automation, Point of Sale (POS) integration, food and beverage costing, security and room locks, and reporting of Key Performance Indicators (KPIs).

Market Concentration & Characteristics

The property management market growth stage is medium. The global trend toward urbanization has significantly impacted the market. As cities expand and populations concentrate in urban areas, the demand for residential, commercial, and industrial properties increases. This growth necessitates efficient management of larger and more complex property portfolios. PMS provides the necessary tools to handle these complexities, offering solutions for everything from tenant management to maintenance scheduling. As real estate development continues to accelerate, the reliance on sophisticated property management systems is expected to grow correspondingly.

Moreover, the integration of Internet of Things (IoT) devices in buildings is another significant driver for the PMS market. Smart locks, energy management systems, and predictive maintenance tools require sophisticated software to manage and utilize these technologies effectively. According to GVR analysis, the smart building market was valued at USD 93.93 billion in 2022 and is expected to register a CAGR of 26.8% over the forecast period to reach a market valuation of USD 570.02 billion by 2030. PMS often includes features that support the integration and management of smart building technologies, thereby improving building operations and tenant satisfaction. The growing trend towards smart buildings is thus a critical factor in the increasing demand for advanced property management solutions.

The ability to gather, analyze, and report on data one of the significant advantages of PMS, which allows enhanced data analytics to help property managers to make informed decisions, optimize operations, and improve overall performance. The insights gained from data analytics are valuable for strategic planning and operational efficiency, making advanced software solutions an essential tool in property management. 

High implementation costs can act as a major challenge for the adoption of PMS. The implementation of efficient PMS can be expensive owing to underlying costs such as software licensing fees, hardware infrastructure setup, data migration, employee training, and ongoing maintenance. These expenses can be particularly challenging for small and medium-sized property management firms or those with fixed budgets, making it difficult for them to justify the initial investment in software adoption. Moreover, the complexity of integrating the software with existing systems and the need for customized configurations can add to the establishment costs, further discouraging potential buyers. Some property management companies may be hesitant to switch from their existing manual processes, believing them to be sufficient for their operations.

The PMS market is diverse, with significant variations in demand and requirements across different end-use segments. Residential properties, particularly multi-family housing/apartments, dominate the market due to the volume and complexity of management needs. Commercial properties also represent a large share, driven by the need for efficient lease and tenant management. The industrial segment, which includes warehouses and distribution centers, requires PMS to handle large-scale operations. Key features include inventory management, lease tracking, maintenance scheduling, and logistics coordination. The rise of e-commerce and the need for efficient supply chain management have increased the demand for robust property management solutions in this sector.

Deployment Insights

The cloud segment dominated the target market and accounted for the largest revenue share of 60.6% in 2023. This is attributable to the growing adoption of cloud deployment among various end-users, including housing associations, corporate occupiers, and property managers, among others. Factors such as cost-effectiveness, ease of use, scalability, and fewer tenant disputes are encouraging small, medium, and large enterprises to shift toward cloud-based property management solutions. Also, cloud-based PMS software offers a backup facility and seamless data integration, which helps in preventing data loss. Besides, it also saves property managers indirect costs of money recovery as well as direct costs included in automating a labor-intensive procedure.

The on-premises deployment segment is expected to register considerable growth over the forecast period. One of the primary drivers for the growth of on-premises deployment is the heightened concern over data security and privacy. On-premises solutions allow organizations to maintain direct control over their data, ensuring it is stored and managed within their infrastructure. This control is particularly important for property managers handling sensitive tenant information, financial records, and legal documents. By keeping data on-premises, organizations can implement stricter security protocols and reduce the risk of data breaches associated with cloud-based solutions.

End-use Insights

The property managers segment dominated the target market, accounting for a revenue share of 37.9% in 2023. Property management has become increasingly complex due to the growth in the number and variety of properties, including residential, commercial, and industrial. Property managers handle various tasks such as tenant screening, lease administration, rent collection, maintenance coordination, and compliance with local regulations. The complexity of these operations necessitates the use of advanced PMS to streamline and automate processes, improve efficiency, and reduce administrative burdens.

The housing associations segment is expected to witness considerable growth over the forecast period. This is attributable to a few challenges faced by apartments and townships, including receiving payments, leasing agreements, and tracking tenants. However, all these challenges have compelled market players to provide solutions for inspections, tracking payments, transparent and comprehensive reporting, and maintenance. Affordable housing using PMS allocates accurate rent payments depending on the amount paid by the tenant compared to government payment.

Solution Insights

The software segment dominated the target market, accounting for a revenue share of 67.2% in 2023. Accelerating digital transformation prompted property management businesses to adopt streamlined solutions for centralized operations. Robust software platforms are essential due to the increasing complexities of property management, providing automation, data analytics, and remote access capabilities. This growth is further fueled by property managers' recognition of software's competitive advantages, driving investments to enhance tenant experiences, occupancy rates, and resource allocation.

The services segment is expected to grow at the fastest CAGR of 9.5% over the forecast period. This is attributable to the increasing need for specialized expertise in managing complex property tasks. Service providers offer tailored solutions for legal compliance, tenant relations, marketing, and strategic planning, addressing the multifaceted nature of property management. This segment not only provides industry insights and a human touch but also enhances software platforms through training, customer support, and customization, contributing significantly to its remarkable growth.

Application Insights

The residential segment accounted for the largest market share of 65.6% in 2023 and is expected to continue its dominance over the forecast period. The dominance of the residential segment can be attributed to the increasing demand for rental properties and increasing investments in real estate. Urbanization trends and changing lifestyle preferences have led to a significant increase in the number of people opting to rent rather than buy homes. This trend is especially pronounced among younger generations, who prioritize flexibility and are less inclined to commit to long-term homeownership. As a result, there is a higher volume of rental properties, which drives the need for effective property management solutions. The residential segment is further distributed into sub-segments, namely multi-family housing/apartments, single-family housing, and others.

The commercial segment is expected to grow at the fastest CAGR of 9.6% over the forecast period. The growing commercial sector across the globe is one of the major factors propelling market demand. The rising cyber risk management, growing disposable income, and changing consumption technologies, among others, are other factors expected to fuel investments in the commercial sector, thus driving the PMS market growth. Moreover, the commercial segment comprises various sub-segments, namely retail spaces, office spaces, hotels, and others. PMS has become an essential tool in the hotel management industry. It helps in handling the interface of numerous departments within a hotel to manage the estate or land effectively. Also, it helps in automating hotel operations such as guest bookings, guest details, materials management, online reservations, food and beverage costing, point of sale, accounts receivable, HR and payroll, maintenance management, sales and marketing, quality management, and other amenities.

Regional Insights

North America asserted its dominance in 2023, capturing the largest revenue share at 45.1%. This dominance can be attributed to the widespread availability of high-speed internet, robust cloud computing capabilities, and cutting-edge software development resources, creating an ideal environment for the adoption and innovation of PMS. Companies in North America are at the forefront of developing and implementing advanced technological solutions, making the region a leader in the target market.

The U.S. Property Management Software Market Trends

The U.S. property management software market held the largest share of 73.0%, in North America in 2023. This dominance is expected to continue and anticipated to grow at a significant CAGR from 2024 to 2030. The U.S. has a high rate of urbanization, with a large proportion of the population living in cities and metropolitan areas. This urban concentration leads to the development of large residential complexes, commercial buildings, and multi-use properties.

Asia Pacific Property Management Software Market Trends

Asia Pacific recorded the fastest CAGR of 10.4% in the property management software market over the forecast period. Several factors contribute to this rapid growth, reflecting the dynamic and evolving real estate landscape in the region. Several countries in the Asia Pacific are implementing government initiatives and smart city projects to enhance urban infrastructure and improve the quality of life. These projects often involve large-scale property developments that require advanced management solutions. PMS plays a crucial role in smart city initiatives by providing tools for efficient property management, energy management, and tenant services.

The property management software market in China is experiencing significant growth, driven by significant investment in PropTech (Property Technology) startups and innovative solutions aimed at transforming the real estate industry. These investments support the development of advanced PMS tailored to the unique requirements of the Chinese market. PropTech startups in China are focusing on areas such as smart buildings, tenant engagement, and data analytics, driving innovation and market growth in the PMS sector.

Europe Property Management Software Market Trends

The adoption of property management software in Europe is on the rise, driven by several key factors. Europe has been at the forefront of sustainability initiatives, with a strong emphasis on reducing carbon emissions and improving energy efficiency in buildings. PMS plays a crucial role in promoting sustainability by optimizing energy usage, monitoring environmental performance, and facilitating green building certifications. The integration of sustainability features into property management software aligns with European priorities and drives adoption among property managers committed to sustainable property management practices.

The UK property management software market is witnessing demand due to a combination of factors such as efficiency, transparency, and scalability in streamlined PMS. Property managers in the U.K. are seeking software solutions that can automate routine tasks, centralize data management, and provide actionable insights to optimize operations.

Key Property Management Software Company Insights

Some of the key companies operating in the PMS market include RealPage, Inc.,MRI Software LLC, and among others.

• RealPage, Inc. is a leading global provider of software and data analytics solutions for the real estate industry. RealPage offers a range of tailored solutions for various property types, including affordable housing, multifamily, military, senior, student, single-family, and commercial properties. RealPage's suite of property management solutions include software for leasing, marketing, accounting, resident services, and more. They also provide shared cloud services, electronic payments, document management, decision support, and learning services.The company currently manages over 24 million property units globally, with operations spanning offices in North America, Europe, and Asia.

• MRI Software LLC is a provider of real estate and investment management software solutions. MRI Software offers a comprehensive, flexible, and open platform that empowers owners, operators, and occupiers in commercial and residential property organizations to innovate in rapidly changing markets. Their software solutions cover various aspects of real estate management, including property-level management, accounting, investment modeling, analytics, and more. The company operates through its offices in the U.S., Canada, the UK, Ireland, South Africa, Australia, New Zealand, Singapore, Hong Kong, and India. 

Yardi Systems Inc. and Entrata, Inc. are some of the emerging market companies in the property management software market.

• Yardi Systems Inc. is a U.S.-based company that specializes in PMS solutions for the real estate industry. The company provides PMS platforms such as Yardi Voyager and Yardi Breeze, which cater to property managers, owners, and investors of all portfolio types and complexities. Their software solutions cover a wide range of functionalities, including marketing, leasing, accounting, maintenance, procurement, energy management, investment management, asset management, and market research. Yardi Systems serves a global customer base, with clients in over 80 countries.

• Entrata, Inc. is a software company that specializes in providing property management solutions for the real estate industry. It offers solutions for multifamily, student, military, affordable, homebody, and commercial properties. The company’s offerings include websites, mobile apps, payments, lease signing, accounting, and resident management. The company also offers data sharing and business intelligence products to empower customers with accurate and accessible visualized data.

Recent Developments

• In April 2024, RealPage, Inc. announced the Lumina AI Platform. Lumina is an advanced data platform that harnesses artificial intelligence (AI) to optimize performance for property managers. It offers smarter systems of engagement, intelligence, and management to enhance efficiency and productivity. Lumina leverages AI-powered virtual assistants for proactive renter engagement, regardless of time, location, staffing, or preferred communication channels. The platform also simplifies complex tasks, streamlines workflows, and provides advanced systems of intelligence for data-driven decision-making.

• In March 2024, CoreLogic announced a strategic alliance with LandGate, a U.S.-based data solutions provider for commercial real estate and energy. The alliance aims to enhance real estate and energy analytics by combining LandGate's innovative data platform for asset analysis with CoreLogic's robust property data. The collaboration would provide a comprehensive solution for various stakeholders in the real estate and energy sectors, enabling better-informed decisions and identifying optimal sites for renewable energy solutions.

• In July 2023, Entrata, Inc. announced the acquisition of Rent Dynamics, a prominent resident rent reporting and financial resources provider. This initiative allowed Entrata, Inc. to expand its offerings and strengthen its position in the property management industry, providing additional valuable services related to rent reporting and financial management for residents.

• In June 2023, MRI Software LLC introduced MRI Engage Work, a commercial tenant portal that offers tenants a unified and seamless experience while utilizing diverse technology solutions. This innovative platform is designed to provide an intuitive and user-friendly interface, enabling effortless interactions between property teams and occupants. With MRI Engage Work, tenants can access billing information, make payments, and submit online service requests, all from a single login.
  

Property Management Software Market Report Scope

Global Property Management Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global property management software Market report based on deployment, solution, application, end-use, and region. 

• Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • Cloud

  • On-premises

• Solution Outlook (Revenue, USD Million, 2017 - 2030)

  • Software

    • Rental Listings Management

    • Applicant Management

    • Reporting & Analytics

    • Maintenance Activities Management

    • Others

  • Services

    • Professional Services

    • Managed Services

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Residential

    • Multi-family Housing/ Apartments

    • Single-family Housing

    • Others

  • Commercial

    • Retail Spaces

    • Office Spaces

    • Hotels

    • Others

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Housing Associations

  • Property Managers/ Agents

  • Property Investors

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa