by The real estate property management market includes property managers and third-party service providers that oversee numerous residential and commercial properties for individuals and companies. Property management software allows property managers to automate rent collection, tenant screening, maintenance requests, financial reporting and more. This helps in streamlining operations and improving tenant services. The growing adoption of internet of things (IoT) and smart home technologies is also enabling property managers to remotely monitor properties and resolve issues quickly.
The Global Real Estate Property Management Market is estimated to be valued at US$ 22.56 Bn in 2024 and is expected to exhibit a CAGR of 7.6% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the real estate property management market are Accruent, AppFolio, Inc., Apartment Management Consultants, LLC, BH Management Services, Cushman & Wakefield, Entrata, Inc., Greystar Real Estate Partners, IBM Corporation, JLL (Jones Lang LaSalle), Lincoln Property Company, MRI Software LLC, Oracle, RealPage, Inc., SAP SE, and Yardi Systems, Inc. The increasing urbanization and rising demand for rental properties from millennials are fueling market growth. For instance, according to the U.N., around 68% of the world population is projected to live in urban areas by 2050.
The rapid growth of co-living and student housing segments is also creating opportunities for property managers. Major players are focusing on global expansion through partnerships and acquisitions to leverage opportunities in foreign markets. For example, in 2022, RealPage acquired Canadian company LodgeLink to expand its presence in North America.
Market key trends
The increasing adoption of automated property management software with AI and machine learning capabilities is a key driver in the Real Estate Property Management Market Trend. AI-powered solutions help property managers better analyze tenant data, optimize operations and drive efficiency. Another major trend is the rising popularity of mobile property management apps that allow on-the-go access to property records, work orders, lease documents and more. This is improving responsiveness for tenants.
Porter’s Analysis
Threat of new entrants: The real estate property management market requires large initial capital investments and established customer relationships, creating barriers for new companies.
Bargaining power of buyers: Individual property owners have low bargaining power due to fragmented nature of industry however large property management firms have moderate power to negotiate terms.
Bargaining power of suppliers: Suppliers of property maintenance and operational equipment have low bargaining power as they sells undifferentiated commodities to numerous buyers in this industry.
Threat of new substitutes: There are few product substitutes for property management services. However, self-management by property owners is a potential substitute.
Competitive rivalry: The real estate property management market is competitive with presence of numerous regional and global players.
Geographical Regions
Currently, the North America region dominates the global real estate property management market holding the largest share in terms of value. This is mainly attributed to the growth of commercial and residential properties in countries like the United States. The U.S. specifically accounts for a significant portion of the regional market share.
On the other hand, the Asia Pacific region is anticipated to witness the fastest growth over the forecast period from 2024 to 2031. Rapid urbanization and infrastructure expansion activities in nations such as China and India are prompting the growth of real estate sector in Asia Pacific. Additionally, aspects like growing nuclear families and working professionals are elevating the demand for managed residential properties in emerging APAC economies.
Unlock More Insights—Explore the Report in the Language You Prefer
French | German | Italian | Russian | Japanese | Chinese | Korean | Portuguese
About Author - Priya Pandey
Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement. LinkedIn Profile