Real Estate Property Management Software Market Size [2031]

Report Description

Real Estate Property Management Software Market Outlook 2031

The global real estate property management software market size was USD 19.5 Bn in 2022 and is likely to reach USD 44.13 Bn by 2031, expanding at a CAGR of 9.5% during 2023–2031. The market growth is attributed to the increasing demand for SaaS software for property maintenance in the commercial and residential sectors.

The real estate industry is heavily data-driven and mostly focused on property management and making critical decisions. Companies present in the market are heavily dependent on property management software, especially SaaS software. Adoption of this type of software is increasing, as these companies are data-driven and managing all the data offline is not possible.

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SaaS software allows company employees to access the data from anywhere and anytime, allowing companies to make decisions without any time constraints. Moreover, this type of software allows companies to deal with multiple clients at the same time, using its cloud-based services.

Companies integrate multi-vendor platforms into their existing system using SaaS software to cater to various customers at the same time.

The COVID-19 pandemic hampered the global real estate property management software market, owing to the imposition of lockdowns across the globe. Demand for commercial and residential spaces decreased and schools and offices were closed, as governments across the globe imposed strict regulations on social distancing. This resulted in a decrease in the demand and usage of property management software.

Post pandemic, the demand for property management software grew, as all schools and commercial spaces reopened and companies went back to work-from-office mode, thereby boosting the market revenue.

Real Estate Property Management Software Market Dynamics

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Drivers

Rising demand for software as service software (SaaS) in the real estate industry is driving the market. SaaS with cloud-based solutions helps organizations streamline operations by automating all the work. Companies in the real estate industry are focusing on adopting cloud-based SaaS software to deal with multiple clients and manage all property deals.

Restraints

Lack of awareness regarding optimal software solutions hampers the global market. In underdeveloped and some part of developing nations, most of the real estate operations and deals still take place through the offline network.

Real estate owners and companies present in small countries have not come up with the necessary solutions that aids in expanding their business. This lack of awareness hinders the global market by losing potential revenue for the market.

High risk associated with investing in the rapidly growing real estate industry in developing nations impedes the market growth. Real estate brokers approach local developers, due to the lack of funds. This leads to various issues, such as delays in building sites. This majorly affects the adoption of real estate management software.

Emerging Opportunities

Growing investment activities in commercial and residential spaces is expected to create opportunities in the market during the projected period. The global e-commerce sector is growing at a rapid pace and companies in this space are focusing on heavily investing in logistics and warehouses to rebuild their supply chain, which was disrupted during the COVID-19 pandemic.

Moreover, post-pandemic, global organizations are focusing on investing in office spaces to expand their businesses. This is expected to boost the demand for property management software during the projection period.

Scope of the Real Estate Property Management Software Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Real Estate Property Management Software Market Segment Insights

Property Type Segment Analysis

Based on property type, the real estate property management software market is divided into commercial, residential, and industrial. The residential segment is projected to expand at a significant growth rate during the projection period, owing to the increasing usage of property management software for managing various properties, such as residences, bungalows, and single & multi-story flats. This software allows tenants and landowners to store their legal documents of property, such as property agreements.

Rapidly growing population across the globe is boosting the need for residential spaces in the coming years. This generates the need for advanced property management solutions.

The commercial segment is projected to expand at a considerable CAGR during the forecast period, as investments in retail and office spaces are rising across the globe. The need for property management software in the commercial space for managing spaces, such as offices, storage facilities, and the retail industry, is increasing.

The prices and YoY contracts of commercial spaces are different than the residential ones. SaaS property management software provides solutions to manage the price point, legal documents, and property operations. Growing commercial real estate industry across the globe is expected to boost the demand for property management solutions during the projected period

Solution Segment Analysis

On the basis of solution, the global market is segregated into marketing and advertising, legal insurance consultancy, rental and tenant management, property sale and purchase solutions, and accounting and cash flow management software.

The rental and tenant management segment is projected to expand at a considerable CAGR during the forecast period. Property management software is mainly used in residential real estate for maintenance management.

This software enables support and maintenance requests to be handled with ease. It also allows service providers and suppliers to be scheduled and tenants and property owners to communicate about scheduled maintenance tasks. Rapidly growing residential real estate industry across the globe, especially in emerging economies, is creating opportunities for the key players competing in this market.

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Deployment Mode Analysis

On the basis of deployment mode, the real estate property management software market is segmented into cloud and on-premise. The cloud segment is projected to expand at a robust growth rate during the forecast period, due to the increasing adoption of cloud-based SaaS software to make hassle-free decisions.

Companies prefer using cloud-based software for property management, as it allows property managers and landowners to manage and store all the documents in one place. They access these documents anytime and from anywhere. Moreover, cloud services offer users advanced security for their sensitive data, which eliminates the risk of data theft.

Regional Outlook

In terms of region, the global real estate property management software market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the increasing investment activities in real estate in the region.

As per the report published by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development on October 25, 2023, 759,000 new houses were sold in the month of September, which was 12.3% more than the sales in August, which accounted for 676,000. Sales in the residential real estate industry are increasing every year, which is expected to boost the demand for real estate property management software during the forecast period.

The market in Asia Pacific is anticipated to expand at a considerable CAGR in the coming years, due to the rapidly growing real estate industry in developing countries. Ongoing industrialization in countries, such as India, China, and Japan, leads to infrastructure and growing investments in retail, office spaces, and logistics.

Mainland China and Japan are expected to continue their dominance in the real estate industry. Investors are inclined towards Japan for real estate investment, owing to low interest rates. In 2023, the demand for office spaces is expected to grow, as the return-to-office trend is expected to continue.

Global e-commerce companies present in the region are focusing on strengthening their supply chains by investing in modern logistics facilities and warehouses in order to enhance their operational efficiency and storage capacity.

Demand for SaaS software that offer hassle-free solutions is expected to grow in the projection period, due to growing investments in retail stores. Around 71% of physical stores present in the region are focusing on expanding or adding new stores to their portfolio. Preference for secondary retail stores is increasing, creating the need for property management solutions for improved operations and deals.

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