Real estate, one of the world’s oldest and most established industries, is undergoing a profound transformation.
As technology continues to integrate into every aspect of modern life, property technology (prop-tech) is redefining the way real estate is bought, sold, managed and developed.
The rapid adoption of artificial intelligence (AI), automation, and data-driven decision-making is pushing this shift, turning an industry traditionally resistant to change into a playground for innovation.
According to the Global PropTech Market Outlook 2029, the global prop-tech market is expected to surpass $75 billion by 2029, compared to $34.59 billion in 2023, reflecting a compound annual growth rate (CAGR) of 15.36% between 2024 and 2029.
Leading companies such as Zillow, Redfin and Trulia are already leveraging technology to revolutionize property transactions.
JLL, a global real-estate powerhouse, has been investing aggressively in prop-tech, acquiring the AI-driven company Skyline in 2021 for an estimated $100 million.
This surge in investment is not coincidental.
Over the past decade, real-estate companies have sought smarter, more efficient ways to manage portfolios, optimize resources and enhance returns. Between 2012 and 2020, prop-tech firms raised over $43 billion globally, with 2021 marking a record high as the industry pivoted toward technology in the wake of the Covid-19 pandemic.
Now, as competition intensifies, staying ahead means embracing technology at an unprecedented pace.
Growing demand for sustainable prop-tech
As the world grapples with climate change, the real-estate sector is coming under increased scrutiny.
Real estate accounts for 40% of global energy consumption and 30% of global greenhouse gas emissions, making it a primary target for stricter sustainability regulations.
Governments and corporations alike are committing to carbon neutrality and net-zero initiatives, forcing the industry to adapt or risk obsolescence.
This shift is creating a fertile ground for prop-tech solutions that improve energy efficiency, reduce waste and optimize resource allocation.
Companies failing to invest in sustainable prop-tech may soon find themselves lagging behind, while those that innovate stand to gain a competitive edge in an evolving marketplace.
Israel as a global prop-tech leader
In Israel, the demand for prop-tech innovation is not just a matter of sustainability but also of economic resilience.
The country’s heavy reliance on imported building materials became glaringly apparent in April 2023, when Turkey imposed a construction material export ban on Israel. This disruption underscored the urgent need for local innovation — specifically, the development of green building technologies.
By investing in advanced construction materials, AI-driven energy management and sustainable urban planning, Israel has the potential to position itself as a global prop-tech leader, fostering economic growth while enhancing its competitive standing in the global real estate market.
Artificial intelligence is no longer a futuristic concept in real estate — it is an integral force advancing efficiency, automation and decision-making.
Key innovations in the prop-tech boom
- AI-powered smart buildings: Dynamic, sensor-equipped structures that automatically adjust temperature, lighting and energy consumption based on real-time data.
- Automated construction and robotics: Robots that paint walls, install flooring and assemble prefabricated components are already being deployed, reducing costs and construction timelines.
- 3D-printed structures: Entire buildings are now being printed using large-scale 3D printers, offering faster, cheaper and more sustainable construction solutions.
- Responsive architecture: Buildings designed to adapt to environmental conditions, including self-cooling facades, air-purifying exteriors and structures that automatically adjust to weather changes.
Passing trend or fundamental shift?
There is no doubt that prop-tech is far more than a fleeting trend.
In major markets like San Francisco, New York and London, prop-tech hubs are emerging, drawing investment and fostering technological breakthroughs that are shaping the future of the industry.
The rapid technological integration within real estate suggests that we are witnessing a foundational shift, not just an incremental evolution.
In the coming years, real-estate firms will continue to invest heavily in technology to maintain a competitive advantage. New entrants to the market will introduce groundbreaking solutions, challenging traditional models and reshaping the industry on a global scale.
As more countries recognize the economic potential of merging real estate with cutting-edge technology, we can expect prop-tech to become one of the defining forces of the 21st century economy.
Investment opportunities
The convergence of AI, automation, sustainability and digital transformation is redefining the very nature of real estate.
For investors, developers, and policymakers, the message is clear: Prop-tech is not optional. It is the future.
As we stand on the brink of a new era in real estate, the question is no longer whether prop-tech will reshape the industry, but rather which companies, cities and nations will lead this revolution.
Investing in prop-tech today means securing a stake in the future of an industry undergoing its most profound transformation in history.
The next decade will belong to those who embrace innovation, sustainability and data-driven decision-making — because in the real-estate industry of tomorrow, technology is the foundation.
Dr. Bella Barda-Bareket is a real-estate investment expert specializing in emerging trends, prop-tech, and the intersection of real estate and technology. Disclaimer: This article does not constitute financial or investment advice. Readers are encouraged to conduct independent research before making any investment decisions.
