Real Estate Software Market Size, Share & Trends Analysis Report By Type (CRM Software, Enterprise Resource Planning Software), By Deployment, By End Use, By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global real estate software market size was valued at USD 9.34 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.7% from 2021 to 2028. The discontinuation of numerous construction activities across the globe amid the COVID-19 pandemic led to a small decline in the market. However, the market is expected to recover post-pandemic due to the increased digitization of existing customer data and records, which help clients predict purchasing behavior and customer trends. Population growth and rapid urbanization have led to a rise in major infrastructure development projects using smart solutions in recent years. Furthermore, the adoption of new software technologies such as cloud and artificial intelligence across several applications in the real estate market is also driving the market.

Real estate software helps increase the productivity of businesses as they work for various areas such as social media, online advertising, and websites, leading to higher demand for efficient software tools. Moreover, factors such as the increased digitization of real estate businesses and improvements in automation technologies have positively impacted the real estate software market in recent years. Furthermore, the need for improved security of sensitive data and improved data management techniques are encouraging businesses to adopt various software solutions and improve customer retention.

Key vendors in the real estate software market are adopting various technologies to offer products more relevant to the various needs of customers. Virtualization and adoption of Virtual Reality (VR) are expected to favor market growth as they help save time and resources, expand reach to include long-distance buyers, and increase user engagement. Furthermore, Artificial Intelligence (AI) and Machine Learning (ML) are allowing businesses to automate time-consuming tasks, resulting in a better ROI. For instance, IBM TRIRIGA included new AI capabilities in its real estate software. The new features are expected to help facility and real estate managers optimize office spaces and improve their workplace experience. Additionally, blockchain technology and smart contracts are helping simplify transactions and reduce the number of stakeholders, leading to a greater level of transparency.

Real estate software is employed to automate various processes or tasks and speed up the workflow. Internal teams such as sales and marketing, finance, and top management can better analyze the customer journey by monitoring the different segments of the real estate software, gathering information about leads, managing dashboards for employees, and tracking financial data for orders. These factors could facilitate the growth of the real estate software market in the near future. However, the high investments required and the high training cost of the workforce could hamper the market growth to a certain extent. Property management businesses are transitioning to online platforms, which could further increase the cost of the real estate software and hamper the growth of the market.

Type Insights

The Customer Relationship Management (CRM) software segment dominated the market in 2020 and accounted for nearly 25% of the revenue share. CRM software supports realtors in staying organized, moving tenants, following up with potential buyers, and closing sales deals on properties. CRM software also helps improve productivity and efficiency by speeding up routine processes and keeping customers and clients up to date about recent updates. The adoption of smart technologies and enterprise applications for project management could further drive the segment growth. Additionally, the rising demand for CRM solutions for ensuring the security of sensitive information could have a positive impact on the CRM software segment.

The contract software segment is expected to grow significantly from 2021 to 2028, registering a CAGR of more than 11%. Contract management software can assist in tightening inspection, compliance with regulatory requirements, reducing investor fears, and building customer trust. Data privacy regulation compliance facilitates protection from internal and external security threats, thus building trust among real estate customers. The adoption of digital technologies such as e-signatures and AI-assisted contract management are driving the growth of this segment.

Deployment Insights

The cloud segment dominated the market in 2020 and is expected to expand at more than 11% CAGR from 2021 to 2028. Cloud-based software provides faster and efficient data access to real estate companies, thus increasing their workflow productivity. Moreover, efficient management of large volumes of data is possible through the cloud deployment model that has higher security standards. The significant growth in construction activities globally is expected to drive the usage of cloud technologies to better manage businesses and help improve efficiency and productivity by using data to streamline processes.

As compared to the on-premise deployment model, the cloud model does not require additional hardware, making it cost-efficient and economical for small-scale businesses. Furthermore, the storage capacity of the cloud can be easily upgraded or downsized based on requirements and the pay-as-you-go feature makes it more attractive. Moreover, cloud-based construction and project management solutions offer organizations functionalities such as project management, scheduling, and automating tasks into a single dashboard, which could deflate the demand for on-premise solutions.

Application Insights

The residential application segment captured the largest share of nearly 55% in 2020. However, the commercial application is projected to emerge as the fastest-growing segment over the forecast period. Real estate software demand in the residential and commercial sectors has seen significant growth in recent years. The rising preference for homeownership and constantly rising residential property prices are also driving the demand for real estate software. Buildings have seen an increase in modern infrastructure and commercial spaces have grown significantly in previous years.

Real estate software helps residential and commercial property builders to track associated tasks such as transaction updates, storage of legal documents, property management, and easy handling of property accounts. Many countries have also seen an increase in the number of retail shops that require knowledge about property and building leases. Real estate software solutions can assist businesses and customers to acquire relevant knowledge.

End-use Insights

Real estate software is majorly used by architects and engineers, owing to which the architects and engineers segment captured nearly 40% of the overall revenue share in 2020. The segment is expected to continue to dominate the market during the forecast period as well. The rising demand for commercial and residential real estate is compelling architects and engineers to spend increasing time developing feasibility reports for new projects. Real estate software ensures the easy and quick generation of these reports, allowing engineers and architects to focus on their core tasks. Additionally, real estate software helps provide interactive, virtual tours of property that can be used by architects to provide customers a better understanding of their designs.

The real estate agents segment is expected to emerge as the fastest-growing segment over the forecast period. This can be attributed to the increase in the adoption of digital technologies such as VR, AI, and blockchain in the real estate industry. Real estate agents have started adopting digital technologies such as remote property viewing, remote marketing and sales, and digital management of properties to attract and retain customers. For instance, the Zoho CRM software built for real estate agents offers property management, sales process management, and automation features for real estate agents and real estate developers.

Regional Insights

North America dominated the market for real estate software in 2020 and accounted for nearly 35% share of the global revenue. An increase in urbanization and infrastructure development activities and the adoption of new technologies for various commercial and residential applications are positively impacting the market growth in this region. The COVID-19 pandemic has significantly impacted consumer and business sentiments in the region, leading to the low growth rate of the construction industry. However, the industry is expected to recover in 2021 due to a rise in infrastructure investments and an increased focus on smart city projects.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growth is attributed to the favorable development of regional economies and the promising expansion of the construction industry. The region is considered a major market for real estate software due to the growth of the real estate sector in India, Singapore, Japan, China, and Southeast Asian countries. Other key factors driving the demand for real estate software in the region include the implementation of advanced technology and favorable government and regulatory norms.

Key Companies & Market Share Insights

The key players operating in the market include MRI Software Inc.; Microsoft Corporation; Oracle Corporation; and RealPage Inc. Market players are investing in research & development to remain relevant to the changing trends in the market.

Companies are focusing on mergers & acquisitions and new product launches. Increased demand for automation by property developers to generate leads through their websites and other relevant content is resulting in the growth of the market. For instance, in April 2020, MRI Software made enhancements in its MRI Work, MRI Living, and financial suites for helping clients navigate the COVID-19 challenges. In April 2021, MRI Software acquired Manhattan, Trimble’s real estate and workplace solutions business, to enhance its workplace management offerings. Some of the prominent players operating in the real estate software market are:

• Altus Group Ltd.

• Autodesk Inc.

• CoStar Realty Information Inc.

• Microsoft Corporation

• MRI Software LLC

• Oracle Corporation

• RealPage Inc.

• SAP SE

• Trimble Inc.

• Yardi Systems Inc.

Real Estate Software Market Report Scope

Segments Covered in the Report

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 2021 to 2028. For this study, Grand View Research has segmented the global real estate software market report based on type, deployment, end-use, application, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2028)

  • Customer Relationship Management Software

  • Enterprise Resource Planning Software

  • Property Management Software

  • Contract Software

  • Others

• Deployment Outlook (Revenue, USD Million, 2018 - 2028)

  • Cloud

  • On-premise

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • Architects & Engineers

  • Project Managers

  • Real Estate Agents

  • Others

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • Commercial

  • Residential

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa