Property Management Market by Offering (Solutions (Facility Management, CRM Software), Services), Ownership, Geographic Location, End User (Commercial, Industrial, Residential, Recreational Marinas), and Region - Global Forecast to 2028
[291 Pages Report] The property management market is projected to grow from USD 24.7 billion in 2023 to USD 36.4 billion by 2028, at a compound annual growth rate (CAGR) of 8.0% during the forecast period. Due to various business drivers, the property management market is expected to grow significantly during the forecast period. The market is experiencing significant growth due to the fostering demand for smart building projects to streamline property management operations, the increasing demand for SaaS-based solutions for better scalability and cost effectiveness. Moreover, the evolving trend of workplace mobility, remote accessibility, and better co-working spaces drive the market’s growth.
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Market Dynamics
Driver: Increasing demand for smart building projects to streamline property management operations
Smart building solutions give building owners, operators, and other key decision-makers unprecedented visibility into equipment operations by using real-time data generated by sensors, monitors, and controls in a smart building solution configuration. Connected or IoT devices in commercial buildings enable a variety of applications and provide benefits related to automation, convenience, and energy efficiency. These benefits enable building managers, homeowners, and property managers to transform the property and real estate industry with technological advancements. Moreover, smart buildings are ensuring public safety in commercial and real estate properties, which is ultimately encouraging property managers to provide smart solutions to every tenant, house owner, and organization. Moreover, smart devices have increased the engagement of functions, such as connectivity and real-time data access, within enterprise properties. These functions have enabled automation in business operations and brought operational efficiency and agility. The increase in smart sensor adoption and IoT deployments has led to the real-time sharing of vast volumes of data across multiple platforms. Therefore, software vendors prefer to upgrade and enhance their existing solutions to tackle the issues related to operational efficiency, convenience, and security. Thus, the growing number of smart building projects drives the property management market.
Restraints: Financial limitations encompass a broader spectrum of risks
The wide-reaching impact of financial limitations, spanning various risks, significantly impedes the market adoption of property management solutions. This limits property managers from investing in innovative technologies due to high initial costs and ongoing expenses, cited as a top obstacle by 52% of property managers in a Buildium survey. The substantial investment required often deters smaller firms or individual landlords, hindering effective modernization efforts. Moreover, financial constraints limit staff training, affecting skill development and hindering technology utilization. These limitations also restrict ongoing maintenance, impacting software efficiency. Overcoming these hurdles requires flexible pricing models and highlighting long-term benefits to persuade stakeholders to prioritize technology adoption despite cost implications.
Opportunity: Advent of AR/ VR technologies for better efficiency and immersive buyer experience
AR/VR technologies present significant opportunities within property management solutions by revolutionizing various aspects of the industry. These technologies enable immersive virtual property tours, minimizing geographical constraints and offering remote exploration, expanding the reach to a wider audience of potential tenants or buyers. Their integration into marketing strategies enhances property listings by providing engaging and interactive showcases, captivating clients, and fostering better-informed decision-making. Moreover, AR/VR facilitates remote property inspections, improving efficiency and reducing costs for property managers. They also elevate the overall experience for tenants or buyers by offering clearer visualizations and enabling virtual property customization. Additionally, these technologies streamline staff training, aid in development planning, and enhance communication between property managers and clients. Their potential for improving maintenance tasks further augments their value within property management solutions, ultimately creating new avenues for enhanced services, expanded market presence, and a competitive edge within the real estate industry.
Challenge: Integration of legacy systems with current industy standards
Integrating legacy systems with current industry standards poses a significant challenge within the property management solution market due to compatibility issues arising from outdated technology and unique data structures. The complexity of migrating data, interoperability hurdles, and the need to align customized processes further complicate integration efforts. This process demands substantial resources, both in terms of time and investment, while requiring meticulous planning, thorough assessments, and collaborative efforts between IT teams and software providers. Security risks and compliance concerns associated with outdated systems add another layer of complexity, necessitating careful navigation to ensure data security and adherence to regulations. Overcoming these challenges mandates gradual transition strategies, phased implementations, and comprehensive testing to facilitate a smoother integration process and align legacy systems with modern standards.
Property Management Market Ecosystem
By offering, the Facility Management segment to register the highest CAGR during the forecast period.
The property management solutions market includes lease accounting and real estate management, asset maintenance and management, facility management, reservation management, security and surveillance software, CRM software, and other solutions (project management, revenue management, work order management, dock management, and vacation rental management). The facility management segment is projected to grow more during the forecast period. Property owners and managers increasingly seek solutions that streamline operations and reduce costs. Facility management solutions offer automation, centralized control, and data-driven insights, enabling better resource allocation, energy savings, and proactive maintenance, ultimately optimizing operational expenses.
By end users, recreational marinas register the highest CAGR during the forecast period.
The recreational marinas segment is projected to grow more during the forecast period. Recreational marinas play a pivotal role in the property management market, catering to diverse end users seeking leisure, entertainment, and access to water-based activities. These marinas function as hubs for boat owners, enthusiasts, tourists, and local communities, offering a spectrum of services and amenities that transcend mere docking spaces. End users in this domain range from individual boat owners and seasoned sailors to families seeking a weekend getaway or tourists exploring new adventures. Individual boat owners constitute a significant segment of recreational marina users.
By geographic location, the suburban segment registered the highest CAGR during the forecast period.
Suburbs, once considered solely residential hubs, are now experiencing a surge in mixed-use developments, blending residential, commercial, and recreational spaces. This trend has spurred demand for professional property management services that cater to diverse needs. Landlords and property owners seek comprehensive management solutions, from tenant placement and rent collection to maintenance and compliance with evolving regulations. Technological advancements, such as property management software and smart building systems, have streamlined operations, enhancing efficiency and tenant experiences.
By region, North America holds the largest market size during the forecast period.
This growth is attributed to the increasing awareness of technology benefits among property managers, the rising trend of remote work, and the need for efficient operations amidst changing tenant demands. Moreover, a survey by the National Apartment Association revealed that 68% of property managers in North America are now using some form of property management software, emphasizing the widespread adoption and integration of technology into the industry. The shift towards cloud-based and SaaS solutions further drives this trend, offering scalable, cost-effective, and accessible property management software tools that cater to the diverse needs of regional property managers and owners across North America. Additionally, the need for enhanced tenant experiences and efficient property maintenance amid evolving regulations has prompted property managers to seek technology-driven solutions.
Key Market Players
The property management solution and service providers have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgrades, partnerships, and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Some major players in the property management market include IBM (US), Oracle (US), AppFolio (US), SAP (Germany), Trimble (US), Hitachi Vantara (US), Yardi (US), RealPage (US), SYNDICO SAL (Lebanon), Entrata (US), London Computer Systems (US), Zumper (US), DockMaster (US), Dockwa (US), Avail (US), Property Matrix (US), CoStar Group (US), HappyCo (US), JLL (US), MCS Solution (Belgium), Planon (Netherlands), Accruent (US), RentRedi (US), TurboTenant (US), Hemlane (US), Smart Property Systems (US), Innago (US), breezeway (US), Livly (US), DoorLoop (US), Mynd (US), Eptura (US), and Hive (US).
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Report Metrics |
Details |
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Market size available for years |
2018–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
USD (Million) |
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Segments covered |
Offering, Ownership, Geographic Location, End Users, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, Middle East & Africa, and Latin America |
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Companies covered |
IBM (US), Oracle (US), AppFolio (US), SAP (Germany), Trimble (US), Hitachi Vantara (US), Yardi (US), RealPage (US), SYNDICO SAL (Lebanon), Entrata (US), London Computer Systems (US), Zumper (US), DockMaster (US), Dockwa (US), Avail (US), Property Matrix (US), CoStar Group (US), HappyCo (US), JLL (US), MCS Solution (Belgium), Planon (Netherlands), Accruent (US), RentRedi (US), TurboTenant (US), Hemlane (US), Smart Property Systems (US), Innago (US), breezeway (US), Livly (US), DoorLoop (US), Mynd (US), Eptura (US), and Hive (US). |
This research report categorizes the property management market based on offering, ownership, geographic location, end users, and region.
By Offering:
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Solution
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Facility Management
- Lease Accounting and Real Estate Management
- Asset Maintenance Management
- Workspace and Relocation Management
- Reservation Management
- Project Management
- Security and Surveillance Management
- CRM Software
- Other Solutions
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Facility Management
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Solutions by Deployment Mode
- Cloud
- On-premises
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Services
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Professional Services
- Consulting and Training
- Integration and Deployment
- Support and Maintenance
- Service Level Agreement (SLA) Management
- Managed Services
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Professional Services
By Ownership:
- In-House
- Third Party
By Geographic Location:
- Urban
- Suburban
- Rural
By End Users:
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Commercial
- Retail Spaces
- Logistics and Distribution Centers
- Educational Institutes
- Hospitals
- Office And Co-Working Spaces
- Other Commercial End Users
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Industrial
- Construction Sites
- Government and Defense
- Manufacturing
- IT/ ITeS
- Other Industrial End Users
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Residential
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Gated Communities
- Single-Family Housing
- Multi-Family Housing
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Apartments
- Private
- Large
- Luxury
- Vacation Rentals
- Vilas Compounds
- Student Housing
- Other Residential End Users
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Gated Communities
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Recreational Marinas
- Boat Launch Facilities
- Berthing and Docking Facilities
- Personal Watercraft
- Yachts and Sailboats
- Personal Sailboards
- Houseboats
- Other Recreational Marinas End Users
By Region:
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North America
- US
- Canada
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Europe
- UK
- Germany
- France
- Italy
- Spain
- Rest of Europe
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Asia Pacific
- China
- India
- Japan
- Australia and New Zealand (ANZ)
- South Korea
- Rest of Asia Pacific
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Middle East & Africa
- UAE
- Saudi Arabia
- South Africa
- Turkey
- Lebanon
- Rest of the Middle East & Africa
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Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
Recent Developments:
- In October 2023, the latest functionality release of Oracle Property Manager has introduced a new feature called the 'Lease Expiry' Process. This process helps users effortlessly close ROU and Accumulated Amortization balances on a lease during its natural expiration or early termination.
- In September 2023, AppFolio has added generative artificial intelligence (AI) capabilities and new payment options to its cloud business management solutions for the real estate industry. The new generative AI conversational interface, Realm-X, is designed for property managers and joins AppFolio’s suite of AI capabilities.
- In July 2023, Trimble announced the launch of LIMS PRO, a new cloud-hosted version of its widely used Log Inventory and Management System (LIMS) to manage sawmill raw material procurement. As a cloud-based log settlement solution, LIMS PRO is designed to improve operational visibility for mills. It enables small- and medium-sized forest product companies to realize productivity and growth gains that only large companies have historically been able to afford by digitizing lumber supply chain workflows.
- In May 2023, SAP entered a strategic partnership with Planon with the objective of offering companies an integrated solution for real estate and facility management. The collaboration combines Planon’s first-rate real estate and smart building management solution with SAP’s ERP capabilities.
- In January 2023, Trimble acquired Ryvit, an integration Platform-as-a-Service (iPaaS) provider that works with the construction industry. The Ryvit platform is expected to be integrated into the Trimble Construction One platform.
- In June 2022, AppFolio announced AppFolio Stack, an integration marketplace, enabling AppFolio Property Manager users to seamlessly provide the specialized solutions users need to manage complex portfolios and run their entire business from a centralized hub.
Frequently Asked Questions (FAQ):
What is Property Management?
Property management solutions refer to technology, software, and strategies that help property managers streamline their operations, enhance efficiency, and provide better services to property owners and tenants. Property management is the administration and oversight of real estate, whether it be residential, commercial, or recreational marinas. It involves operating, controlling, and maintaining real property to ensure its optimal performance and value. The specific focus of property management can vary depending on the type of property involved:
Residential Property Management: This pertains to managing residential properties such as houses, apartments, condominiums, or multi-family units. Residential property managers are responsible for tasks like rent collection, tenant screening, property maintenance, and addressing tenant concerns.
Commercial Property Management: Commercial property management oversees office buildings, retail spaces, industrial properties, and other non-residential real estate. Managers in this field focus on maximizing the property’s income potential, maintaining the building's infrastructure, and handling lease agreements with business tenants.
Recreational Marinas Management: This type of property management deals specifically with marinas and waterfront recreational facilities. Managers in this sector handle the day-to-day operations of the marina, which may include boat slip rentals, maintenance of docks and facilities, ensuring safety and environmental compliance, and providing services to boaters and visitors.
What is the total CAGR expected to be recorded for the Property Management market during forecast period?
The market is expected to record a CAGR of 8.0% during the forecast period.
Which are the key drivers supporting the growth of the Property Management market?
The market is experiencing significant growth due to the fostering demand for smart building projects to streamline property management operations, the increasing demand for SaaS-based solutions for better scalability and cost effectiveness. Moreover, the evolving trend of workplace mobility, remote accessibility, and better co-working spaces drive the market’s growth.
Which key end users prevail in the Property Management market?
The key end users gaining a foothold in the property management market are commercial, industrial, residential, and recreational marinas.
Who are the key vendors in the Property Management market?
Some major players in the property management market include IBM (US), Oracle (US), AppFolio (US), SAP (Germany), Trimble (US), Hitachi Vantara (US), Yardi (US), RealPage (US), SYNDICO SAL (Lebanon), Entrata (US), London Computer Systems (US), Zumper (US), DockMaster (US), Dockwa (US), Avail (US), Property Matrix (US), CoStar Group (US), HappyCo (US), JLL (US), MCS Solution (Belgium), Planon (Netherlands), Accruent (US), RentRedi (US), TurboTenant (US), Hemlane (US), Smart Property Systems (US), Innago (US), breezeway (US), Livly (US), DoorLoop (US), Mynd (US), Eptura (US), and Hive (US).
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The property management market research study involved extensive secondary sources, directories, journals, and paid databases. Primary sources were mainly industry experts from the core and related industries, preferred property management providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information, and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to to identify and collect information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors' websites. Additionally, property management spending of various countries was extracted from the respective sources. Secondary research was mainly used to obtain key information related to the industry’s value chain and supply chain to identify key players based on solutions, services, market classification, and segmentation according to offerings of major players, industry trends related to solutions, services, deployment modes, ownership, geographic location, end users, and regions, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and property management expertise; related key executives from property management solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using property management solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of property management solutions and services, which would impact the overall property management market.
To know about the assumptions considered for the study, download the pdf brochure
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COMPANY NAME |
DESIGNATION |
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Entrata |
President & Chief Operating Officer |
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Mynd |
Property Manager |
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Livly |
CEO |
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AppFolio |
Property Management Coordinator |
Market Size Estimation
In the bottom-up approach, the adoption rate of property management solutions and services among different end users in key countries concerning their regions contributing the most to the market share was identified. The adoption of property management solutions and services among industries and different use cases concerning their regions was identified and extrapolated for cross-validation. Weightage was given to use cases identified in different regions for the market size calculation.
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the property management market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major property management providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall property management market size and segments’ size were determined and confirmed using the study.
Global Property Management Market Size: Bottom-Up And Top-Down Approach:
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Data Triangulation
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the property management market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major property management providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall property management market size and segments’ size were determined and confirmed using the study.
Market Definition
Property management solutions refer to technology, software, and strategies that help property managers streamline their operations, enhance efficiency, and provide better services to property owners and tenants. Property management is the administration and oversight of real estate, whether it be residential, commercial, or recreational marinas. It involves operating, controlling, and maintaining real property to ensure its optimal performance and value.
Stakeholders
- Property management vendors
- Property management service vendors
- Managed service providers
- Support and maintenance service providers
- System Integrators (SIs)/migration service providers
- Value-Added Resellers (VARs) and distributors
- Distributors and Value-added Resellers (VARs)
- System Integrators (SIs)
- Independent Software Vendors (ISV)
- Third-party providers
- Technology providers
Report Objectives
- To define, describe, and predict the property management market by offering (solutions, services, and solutions by deployment mode), geographic location, ownership, end users, and region
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the market size of segments for five main regions: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as partnerships, new product launches, and mergers and acquisitions, in the market
- To analyze the impact of recession across all the regions across the property management market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product quadrant, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the North American property management market
- Further breakup of the European market
- Further breakup of the Asia Pacific market
- Further breakup of the Middle Eastern & African market
- Further breakup of the Latin America property management market
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Growth opportunities and latent adjacency in Property Management Market
Looking to learn more about the US market size for property management and ideally across states, end market verticals (multi-family, affordable, senior...) and service types (operations, marketing, property accounting & analytics...)