Property Management Software Market Size, Share, Growth, and Industry Analysis, By Type (On-Premise and Cloud-Based), By Application (On-Premise and Cloud-Based) and Regional Forecast to 2033

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PROPERTY MANAGEMENT SOFTWARE MARKET OVERVIEW

The global Property Management Software Market was valued at  USD 3.41 billion in 2024 and is expected to grow to USD 3.66 billion in 2025, reaching USD 6.47 billion by 2033, with a projected CAGR of about 7.3% during the forecast period 2025-2033..

Property management system encompasses software solutions that are specifically developed to handle operations related to management of Real Estate properties or facilities – Residential, commercial and mixed-use properties.

These are tools that can assist property managers, landlords, owners of investment properties, property management companies and others who are in charge of property management and intend to lease their properties and manage tenants, contractors and various businesses related to maintaining properties.

KEY FINDINGS

COVID-19 IMPACT

Property Management Software Industry Had a Positive Effect Due to Increased Adoption of Cloud-Based Solutions during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 crisis brought the demand for remote work and social distancing that resulted in faster adoption of cloud-based PMS by property managers. Cloud solutions enable property managers to work remotely which is crucial when there are lock or travel down restrictions. This shift fostered the need for software with remote access, communication and running especially for organizations with many portfolios.

LATEST TRENDS

Integration with IoT and Smart Building Technology to Drive Market Growth

This has seen PMS integrate more with smart building systems to offer even greater building control. Real-time equipment and building status means that IoT sensors enable property managers to detect the performance of equipment such as HVAC systems, lighting, and security in order to control energy consumption to reduce costs while increasing tenant satisfaction. Smart sensors in this case through IoT can be used to address maintenance concerns with the problems being rectified online before they develop into major concerns hence preventing downtime. This integration enhances the ability of property managers to deliver proactive maintenance hence saving time as well as money.

• According to the U.S. General Services Administration (GSA), over 70% of property managers in the United States now prefer cloud-based property management tools for real-time data access and remote operations.

• According to the National Apartment Association (NAA), 63% of multifamily units in the U.S. adopted smart home technology in 2023, boosting demand for integrated property management software that can handle IoT devices.

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PROPERTY MANAGEMENT SOFTWARE MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into On-Premise and Cloud-Based.

• On-Premised- On the other hand, there is on-premise property management software, which is implemented and operated through the property management company’s owned hardware and server. This type of software is normally developed to fit certain requirements and offers full control of the system.

• Cloud-Based- Web-based property management software is centrally located on servers over the internet (often with the help of a vendor). This has taken the format of the newer model of the PMS market because it is flexible, scalable and easily accessible.

By Application

Based on application, the global market can be categorized into On-Premise and Cloud-Based.

• Household: Property management software for households helps homeowners manage multiple residential properties efficiently. It automates rent collection, maintenance scheduling, and tenant communication. With easy-to-use dashboards, families and landlords gain clear insights into expenses, payments, and occupancy. This streamlined approach saves time, reduces paperwork, and ensures smooth day-to-day property administration for homeowners.

• Hospitality and Vacation Rental: In the hospitality and vacation rental sector, property management software simplifies booking, guest check-in, and housekeeping tasks. It integrates calendars, payment gateways, and channel managers, helping owners maximize occupancy and revenue. By automating guest communication and reviews, operators deliver better guest experiences, reduce manual tasks, and maintain seamless operations across properties.

• Commercial: Commercial property managers use property management software to oversee office spaces, shopping centers, and business parks. The software supports lease tracking, rent invoicing, contract management, and facility maintenance. By centralizing documents and tenant communications, managers can boost efficiency, minimize vacancies, and maintain compliance. This technology-driven solution ensures streamlined commercial asset management.

• Industrial: For industrial applications, property management software optimizes the management of warehouses, factories, and logistics centers. It enables owners to monitor leases, track maintenance, and manage utilities. Automated reporting helps reduce operational costs and prevent downtime. Industrial property managers benefit from real-time data, streamlined workflows, and improved asset utilization for long-term profitability.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.                         

Driving Factors

Adoption of Cloud Computing and SaaS Models to Boost the Market

A factor in the Property Management Software market growth is the Adoption of Cloud Computing and SaaS Models. The growth of the PMS market has been sparked mainly by the enhanced uptake of cloud computing and SaaS. Solutions in the cloud are continuously expandable, and the manager of the property has access to data from any location with access to the Internet. Organizations and companies are also benefited by Saas models because it eliminates a very high initial cost that often makes property management software unaffordable for start up or SMEs.

• According to the United Nations Human Settlements Programme (UN-Habitat), over 56% of the global population now lives in urban areas as of 2023, creating higher demand for streamlined residential property management solutions.

• According to a 2022 survey by the National Multifamily Housing Council (NMHC), 76% of renters expect digital rent payment options, driving widespread adoption of digital property management platforms.

Increasing Demand for Automation and Efficiency to Expand the Market

The main reason that has been fueling the property management software (PMS) market is the rising demand for automation. This may be on account of; one is never too busy to look for efficiency in management, time-saving measures and the general minimization of use of labor. Many traditional property management activities like collections, scheduling, record keeping, lease follow up, communication with tenants may be very demanding and susceptible to mistakes. To overcome these problems, the implementation of the automation system in PMS solutions includes automatic reminders of rent payment by the residents, automatic preparation of the financial statements, and automatic issuance of schedules for maintenance tasks.

Restraining Factor

High Initial Investment Costs to Potentially Impede Market Growth

Initial setup costs are a major source of demand for PMS, particularly for small and mid-size property management organizations or independent property owners and real estate investors who cannot afford expensive PMS solutions. Most on-premise property management solutions involve a significant cost of acquisition of the necessary hardware as well as software licenses and installation and configuration. Furthermore, some businesses may require the services of an expert in IT or IT personnel to take care of the system.

• According to the Cybersecurity & Infrastructure Security Agency (CISA), over 43% of real estate companies reported at least one cyber incident in the last year, raising concerns about data safety in property management software.

• According to the Building Owners and Managers Association International (BOMA), nearly 38% of small property managers find the upfront cost of switching from legacy systems to modern software to be a significant financial burden.

Growing Real Estate Market To Create Opportunity for the Product in the Market

Opportunity

The globalization of real estate and property investment, and the subsequent raising of commercial, residential and integrated facilities, are key factors that promote property management. This is especially the case for businesses with many properties, as too many properties mean that certain tasks, such as lease management, tenant tracking or financial reporting have to be done for multiple properties simultaneously. This growing market puts huge pressure on companies in need of PMS solutions.

• According to the Smart Cities Council, over 600 cities globally are implementing smart city projects as of 2023, creating fresh opportunities for property management software to integrate with city infrastructure and utilities.

• According to the U.S. Department of Housing and Urban Development (HUD), over 7 million low-income households needed affordable rental housing in 2022, pushing property managers to adopt software for efficient allocation and compliance.

Data Security and Privacy Concerns Could Be a Potential Challenge for Consumers

Challenge

One of the most significant concerns facing property management companies is the security of the tenant and property information which includes; their details, their financial records and rental agreements. The use of the cloud-based software poses problems related to security of information especially considering the growing cases of hacking. It is also unlikely for some companies to opt for outsourced solutions since they often believe that in this case they are to have more control over the security of their data and their compliance with the local legislation on protection of personal information.

• According to the European Public Real Estate Association (EPRA), 27 EU member states have varying rental and property management laws, making it challenging for software vendors to standardize offerings across regions.

• According to the National Association of Realtors (NAR), 49% of property managers cited data migration from legacy systems as a primary technical challenge when adopting new management software.

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PROPERTY MANAGEMENT SOFTWARE MARKET REGIONAL INSIGHTS

• North America 

North America has emerged as the most dominant region in the Property Management Software market share due to a convergence of factors that propel its leadership in this dynamic industry.  The property management software is most widely adopted in North American countries particularly the USA and Canada due to technological advancement among businesses. The companies operating in this area are interested in the use of software products designed for automating the processes in the real estate industry, increasing the effectiveness of working with big object portfolios.

• Europe

The UK, Germany and France in particular, have the longest and most developed real estate that currently contain numerous properties of residential, commercial and mixed use under their management. PMS is in demand since it helps to match up operational objectives, meet legal requirements, and help tenants.

• Asia

APAC is the most promising PMS market due to the improvement of the existing urban environment, growth of investments in real estate, and the development of smart cities. The key nations of Asia and Pacific such as China, India, Japan, Australia and the south east Asian countries are fully experiencing high penetration of PMS solutions in both housing segments and other ventures.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Property Management Software Market Through Innovation and Market Expansion

Key enterprise players are shaping the Property Management Software marketplace through strategic innovation and marketplace growth. Major PMS software companies like Yardi Systems, AppFolio and Buildium are further enhancing the existing software with new features consisting of payment gateway,

• According to Oracle’s official press release (2023), the company supports over 10,000 real estate clients globally with its cloud property management solutions, helping manage millions of rental units.

Artificial intelligence and machine learning based analytical tools, smart maintenance and robust and detailed reporting systems. These companies make their software more flexible, so it covers the requirements for modern property management and provides its users with a wider set of tools to use.

List of Top Property Management Software Companies

• Oracles(U.S.)
• MRI Software(U.S.)
• Entrata(U.S.)
• RealPage(U.S.)
• Yardi Systems(U.S.)

KEY INDUSTRY DEVELOPMENTS

April 2024: Information about the acquisition of the Matterport company by CoStar. Matterport is a company specialized in the creation of 3D capture tools to create dimensionally accurate, photo-realistic recreations of any kind of building or space.

REPORT COVERAGE       

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.