Real estate · Industry brief

PropTech companies are experiencing genuine market growth driven by customer spending rather than venture funding alone. Four major listed companies—CoStar, Zillow, AppFolio and Procore—grew combined quarterly revenue 17.9%, with each expanding between 16-19%, indicating broad-based technology adoption across different real estate sectors. Property-management software shows particularly strong monetization, with AppFolio's value-added services revenue growing 22% while units under management rose only 8%, demonstrating customers are buying more technology per property. Construction tech is a clear winner with Procore maintaining double-digit growth and large customer counts rising, while construction and development companies captured half of July PropTech funding. Consolidation among large real estate companies is reinforcing this growth pattern. CoStar acquired Matterport for approximately $1.93 billion to add 3D digital-twin technology and recently closed its $800 million acquisition of Zonda for homebuilder data and software; Rocket acquired Redfin for $1.75 billion to connect home search with mortgage operations. Across these three transactions, buyers committed roughly $4.5 billion, targeting assets with proprietary data, embedded workflows, or transaction access points. Meanwhile, PropTech funding has stabilized after recovering in 2025, with H1 2026 global funding essentially flat year-over-year at $4.53 billion, though highly concentrated with 11 rounds above $100 million representing nearly half of all capital. Debt and private equity accounted for 38.1% of first-half funding, with capital-heavy housing models and undifferentiated software struggling while data, marketplaces, and transaction infrastructure continue expanding.