Property management software market to see significant growth

property management software
(Credit: Allied Markets Research)

The property management software market was valued at $3.2 billion in 2023 and is estimated to reach $7.8 billion by 2033, growing at a CAGR of 8.9% from 2024 to 2033, according to a new report by Allied Market Research. Property Management software typically helps those working in property manage leases, streamline maintenance tasks and stay in control of finances.

The adoption of cloud computing solutions and software-as-a-service (SaaS) platform, the increase in the development of smart real estate infrastructure, a growth in dependency on one platform approach, a rise in consumer demand for sustainable living and working space, are all expected to provide lucrative opportunities for the growth of the property management software market during the forecast period.

The marketing and advertising segment is expected to lead the market, the report said. By solution, the marketing and advertising segment accounted for more than one-fourth of the global property management software market share in 2023 and is expected to remain dominant during the forecast period, owing to increase in the use of digital marketing channels, including social media, search engine optimization (SEO), and content marketing, to reach and engage target audiences effectively.

The cloud segment dominated the market in 2023, accounting for more than three-fourths of the global property management software market share and is expected to witness the fastest growth rate in the upcoming years, owing to increase in the adoption of mobile-friendly solutions, allowing property managers to access their software and manage their properties from anywhere with an internet connection. This mobile accessibility enhances flexibility and productivity, enabling real-time decision-making and communication.

By property type, the commercial segment accounted for nearly one-third of the property management software market share in 2023 and is expected to remain dominant by 2032, owing to rise in demand for integrated solutions that cater to the unique needs of commercial property managers and tenants. This includes features such as lease management tools, tenant tracking functionalities, and financial reporting capabilities tailored specifically for commercial properties.

However, the residential segment is expected to display the fastest CAGR of 10.7% throughout the forecast period, owing to increase in demand for tenant-centric features and functionalities that enhance the residential tenant experience. This includes self-service portals for online rent payments, maintenance requests, and lease renewals, as well as communication tools such as messaging and notifications to facilitate seamless interactions between property managers and tenants.

Region-wise, the property management software market was dominated by North America in 2023 and is expected to retain its position during the forecast period, owing to the integration of advanced technologies such as artificial intelligence (AI) and machine learning (ML) into property management software, enabling predictive analytics, automated workflows, and personalized tenant experiences.

However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rise in the adoption of SaaS platforms across various industries such as educational facilities, industrial units, retail supermarkets, and IT hubs. Additionally, there is a growing emphasis on localization and customization in property management software for the Asia-Pacific market, with providers offering features and functionalities tailored to the specific requirements and preferences of local property managers and landlords, the report concluded.

(Source: Allied Market Research)