PERE’s 2025 Technology report explores how AI is reshaping real estate’s digital evolution
From smart buildings to cybersecurity, artificial intelligence has become the connective tissue driving real estate’s next phase of efficiency and insight. This year’s report, alongside the findings from PERE’s annual Proptech 20 ranking of the top technology-focused fundraisers, examines how data, automation and cultural readiness are redefining proptech’s role in asset performance.
Solving real estate’s AI data challenge
Building clean and consistent data sets is key to successful AI adoption, but also proving to be the most significant barrier.
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PAST REPORTS
The capital-raising market for proptech is hot right now, up more than 14 percent year-on-year for the firms in this year’s Proptech 20. But fundraising is not the only measure of a sector’s health. Indeed, various barriers to proptech adoption remain, from cybersecurity concerns to cultural resistance. Real estate investors will have to look lively if they hope to keep pace with the latest technological developments while also addressing these lingering issues.
As macroeconomic headwinds mount and the private real estate industry adapts its investment focuses, keeping technological advancements high on the agenda has been a challenge.
But the economy is not the only priority for managers and investors; sustainability and ESG remain front of mind in order to meet strict net-zero targets, and technology’s role is set to be vital in collating data to reveal how the market can become more environmentally minded.
Read about this and more in our 2023 Technology Report.
Real estate has lagged other asset classes when it comes to technology, but has begun to seriously pick up the pace. Proptech can make buildings safer, more efficient and more ESG-friendly, and can give investors and managers greater insight and control.
Covid-19 has accelerated trends which were emerging pre-pandemic, so that where progress may once have been slow, proptech has now become real estate’s priority.
Real estate technology investment has dipped this year, despite the global pandemic underlining its importance. However, market participants agree that it is needed – not just for managers to cut costs, identify opportunities, enhance efficiency and add value, but also for investors and tenants to have better, faster access to data – and there is no shortage of opportunities, with covid-19 providing fresh impetus to what was already a rapidly developing part of the market.
It is generally accepted that getting on board the technology train has not come easily to the private real estate sector. But many owners and asset managers have had the light bulb moment that tech is an ally in the mission to improve operational efficiencies and deliver returns in an increasingly competitive global market. Find out more with our 2019 report.
LATEST TECHNOLOGY NEWS
Chasing an attainable social dividend in green housing
As demand for affordable housing surges, managers are betting sustainable construction and fixtures can cut energy costs and emissions.
Three forces that are redefining sustainable real estate investing
Sustainability is playing a role in value creation and reshaping deals as technology plots a path for decarbonization.
BREEAM: Data is rewriting real estate’s sustainability playbook
BREEAM’s Breana Wheeler and Tom Wilson say investors are demanding proof over promises as whole-life carbon, granular performance data and brown-to-green strategies reshape risk.
PIMCO: Turning sustainability into value for real estate
From stronger tenant demand to better financing conditions and higher exit values, the rewards for sustainable assets are tangible, argues PIMCO Prime’s Annette Kroeger.
Healthcare real estate is finding its stride amid aging populations
For investors, rising demand for care, limited new supply and a service that cannot easily move online equals inelastic demand and strong returns.
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