M&A in the Property Technology Sector

Property Technology, or Proptech, the use of digital tools, software, and data in the real estate industry, is revolutionizing the way properties are bought, sold, leased, and managed. Proptech not only makes these tasks more automated, efficient, and less costly, but it allows for novel applications such as smart building systems and virtual tours of properties.

As a result of the technology’s potential, Proptech companies are attractive targets for M&A buyers.  In the first 11 months of 2025, 163 M&A deals were announced in the Proptech sector, already far ahead of the 134 Proptech deals in all of 2024 and on pace to exceed the ten year record of 170 deals set in 2022. Both strategic and financial buyers are active in the sector, with Private Equity firms involved in almost a third of the transactions.

There were also a number of megadeals in the sector through November 2025, such as Swedish PE firm EQT's $2.3 billion acquisition of Norway-based digital marketplaces provider Adevinta's Spanish operations, which includes real estate classifieds. During the first 11 months of 2025, the disclosed value of Proptech deals was $6.8 billion. However, the actual M&A value was much higher because only 9% of the deals disclosed transaction values.

There are a number of factors stimulating the rise in Proptech M&A activity. Here are some of them.

Digital transformation

One of the major factors driving the upswing in Proptech deal volume is the ongoing digital transformation in the real estate industry, as the industry pursues greater efficiency and innovation through leading-edge technologies such as AI, IoT, and data analytics. As real estate businesses become more profitable and efficient through digital transformation they become attractive targets for both strategic and financial acquirers. For example, Rocket Companies, a fintech company operating mortgage, real estate, and personal finance businesses, paid $1.8 billion to acquire digital real estate brokerage Redfin. A major attraction for Rocket was Redfin's strong digital platform, which was seen as a crucial component for Rocket's strategy of creating a single, integrated homeownership ecosystem. 

PE firms are also heavily buying Proptech companies to drive digital transformation, not just in their own portfolios but across the entire real estate industry, one example is global asset management firm TPG's $1.1 billion dollar purchase of the Hospitality Solutions business from technology company Sabre Corporation. The deal is designed to make Hospitality Solutions a focused, independent tech provider, accelerating its growth and digital innovation. In fact, hospitality management is an area that is seeing a lot of M&A focus within the Proptech sector, as indicated by Canadian buy-and-hold acquirer Volaris Group’s recent purchase of BitSoft, a Romanian provider of integrated hospitality technology.

AI

AI is dramatically reshaping almost every industry, not the least of which the real estate industry. From pricing properties, to generating virtual property tours, to automating building maintenance tasks, AI is becoming a fundamental element of the real estate business. Companies that provide transformative AI functionality in this sector are in high demand by buyers. For example, CoStar Group, a provider of online real estate marketplaces and related analytics, paid $1.6 billion to acquire Matterport, a provider of 3D digital twin technology. Matterport's technology enables property owners, buyers, and renters to experience properties through immersive virtual tours from anywhere in the world. CoStar aims to integrate Matterport's AI-driven virtual tours with its real estate data to digitize the industry and offer advanced property analytics. 

In addition, PE firms are actively investing in AI Proptech companies, viewing AI as a key driver of operational efficiency and value creation in the real estate industry. This trend has been accelerating, with AI becoming a critical factor in investment decisions.  For instance in 2025, PE firm Thoma Bravo completed the acquisition of PROS Holdings, an AI-powered SaaS provider for pricing and selling solutions, in a deal valued at approximately $1.4 billion.

Data Analytics

Data analytics, especially in conjunction with AI, is changing real estate operations in a wide variety of ways. Insights gained through data analytics and AI enable real estate professionals to provide precise property valuations, predict market trends, optimize building operations, personalize customer experiences, and improve investment returns through predictive modeling, This has made data analytics providers very attractive targets for acquisition. In fact, some very large M&A deals in 2025 in the Proptech sector have involved data analytics providers. The largest of these was the December 2025 $8.4 billion acquisition of Clearwater Analytics by a consortium of financial buyers that included PE firms Permira, Warburg Pincus, and Francisco Partners, as well as Singapore-based Sovereign Wealth Fund Temasek. Clearwater Analytics provides real-time data, risk analytics, and performance insights for institutional investors, asset managers, and insurers. The company’s primary focus is providing data analytics within the real estate and financial investment ecosystems. 

In another representative data analytics deal in the sector, Homicity, a Canadian real estate technology firm focused on real estate analytics, was acquired by Canadian real estate company Sutton Group. Homicity uses geospatial intelligence and a powerful data engine to integrate property, permit, business, and demographic data for insights in areas such as market research, due diligence, and investment analysis for real estate professionals, lenders, and insurers. Sutton's strategic plan is to integrate Homicity's data-driven solutions into its platform for agents and homeowners.

Data analytics companies are expected to be attractive acquisition targets in the future. As the real estate industry continues to undergo significant digital transformation focusing more on data-based strategies, it makes specialized data analytics capabilities a key competitive advantage and companies that provide those capabilities more in demand.

Consolidation

The Proptech sector is consolidating, creating opportunities for larger companies to acquire smaller, innovative companies. One recent example involved Homebuyer.com, a startup that provides AI-driven homebuying advice and mortgage guidance. The company was acquired by online real estate company Opendoor, which will integrate Homebuyer's mortgage solutions directly into its digital real estate platform.

In another example, commercial real estate company CBRE purchased Industrious, a company that provides flexible, hospitality-focused workspaces, including coworking, private offices, and suites, CBRE plans to integrate Industrious's model and focus into a new "Building Operations & Experience" (BOE) segment that will offer comprehensive, future-ready solutions for owners and occupiers in a time of changing office strategies.

Consolidation is expected to increase in the Proptech sector as it continues to mature, leading to fewer, stronger companies and a shift from specialized niche solutions to integrated tech stacks. As consolidation continues, both financial and strategic buyers are expected to be increasingly active in the sector to gain market share and efficiency.

The positive future of Proptech

Driven by strong growth, increased investment, and accelerating digital transformation in the real estate industry, the future of Proptech is very positive. M&A activity in the sector is also expected to grow significantly, driven by industry consolidation, the urgent need for AI and other leading-edge technologies and tools, as well as the demand for innovative solutions that address real estate's increasing requirement for efficiency and sustainability. M&A deals in the sector will be increasingly focused on meeting those needs.