JLL Global Research's latest report highlights the growing demand for AI-driven solutions in the real estate sector, revealing significant investment opportunities for PropTech companies. While AI adoption is still in its early stages, 90% of companies surveyed plan to incorporate AI into their real estate operations. Currently, 700 PropTech companies (10% of the market) offer AI-powered solutions, including AI-native and AI-augmented products. These solutions address core capabilities, enhanced analytics, automated processes, and new user interfaces.
Despite this progress, gaps remain between AI supply and demand. For example, companies are piloting AI solutions in areas like personalized tenant experiences, smart security, disaster response, and digital twins, which are underdeveloped in the PropTech market. These gaps present opportunities for startups to innovate and meet emerging needs.
Investment in AI PropTech is heavily supported by venture capital, with most companies in their early funding stages. Challenges to adoption include cost pressures, data security concerns, and a lack of comprehensive AI strategies among users. Successful PropTech solutions must focus on ROI, cross-functional value, user-friendliness, and seamless integration with existing systems.
As AI continues to transform the industry, aligning product development with user needs and market demand will be critical for driving adoption and growth in the evolving PropTech ecosystem.
