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
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AI's appetite for electricity is forcing investors and developers to rethink how data centers grow, with renewable energy moving from the sidelines to the heart of operations, writes Elisabeth Jeffries.
New data center fault lines emerge
Investors are on alert for a growing number of red flags that extend beyond power and land access to sustainability, cybersecurity and data sovereignty.
The new risks in data center investing
What is a data center worth when technology changes faster than the buildings housing it?
Data centers capture a growing share of real estate capital
PEI Group data shows that investors and managers continue to prioritize technology-focused real estate despite a tougher fundraising environment.
GI Partners on data centers entering a new phase
After years of growth, data centers are no longer a niche alternative; they are booming and have become foundational exposure to investment portfolios and the global economy, say Mike Armstrong and Michael Lee of GI Partners.
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