The Global Property management market size was valued at USD 16.47 billion in 2021 and is projected to reach USD 39.51 billion by 2030, registering a CAGR of 10.21% from 2022 to 2030.
The Property Management software provides a centralized platform for viewing all properties and enables oversight of other property-related operations, including maintenance tasks and tenant needs. Among other applications, it primarily provides online document storage and sharing, electronic lease agreements, financial reporting, online maintenance requests and tracking, accounting capabilities, and integrated banking. In recent years, PMS management solutions have shifted from manual to automatic. The automatic property management solution has enhanced the property management software system, reducing human errors and enabling property managers to allocate work assignments efficiently to prevent service interruptions. A PMS that is automated reduces the time required to respond to tenant or owner complaints and grievances.
Additionally, it simplifies property management procedures by, among other things, facilitating rent collection, tracking finances, reducing communication gaps, and storing and leasing documents and contracts. Traditionally, data is entered manually using Microsoft Excel, Notepad, or other spreadsheets, making the process slow, inefficient, and error-prone. In addition, landlords either manage their properties themselves or hire third-party property managers, which requires a more significant investment of labour and time. As a result, property management software was developed to prevent human error and automate the work for greater efficiency. The widespread availability of PMS has streamlined and automated the work of property owners and managers.
Currently, many employees prefer to work from home rather than in an office, corporate headquarters, or international branch of an organization. This contributes to the necessity of flexible access to office resources and data. In addition, businesses are using virtual workplaces to reduce their physical infrastructure needs to a bare minimum, allowing them to be more flexible and efficient use office space. Numerous businesses seek mobility, workplace, and other integrated facility management solutions. This enables property managers to maintain work pace and velocity despite a large workforce. Associated real estate agents and property managers may use these solutions to keep track of all the properties they manage and the routine maintenance that must be performed. As a result, the business of assets management is profiting from the rising trend of worker mobility.
Software as a service (SaaS) and cloud computing integrated services have become preferred service delivery methods. Businesses of all sizes can benefit from subscription-based SaaS solutions. Companies on the market increasingly turn to SaaS solutions to streamline their operations by automating workflows and eliminating manual input. Also, by deploying SaaS solutions, businesses can reduce the complexity and expense of on-premises Deployment. SaaS software enables large multifamily property management firms to integrate various technologies across their portfolios.
Furthermore, the SaaS methodology is essential for multi-vendor device compatibility with older systems. Employees rely on up-to-date information to make vital decisions within data-driven real estate organizations. Decision-making is significantly hindered by the impossibility of obtaining data from anywhere using offline networks. In addition, SaaS solutions allow users to access information from any location using any internet-capable device. In addition, the SaaS model facilitates the incorporation of multi-vendor platforms into existing systems. Property managers can use a SaaS platform to combine their property solutions with advanced payment services to facilitate quick and simple transactions.
The potential risks will increase as the real estate industry becomes more global. The highest priority on the list will be country or city risk, including political risk and the possibility of benefits being appropriated. Rising real estate investment in developing countries may pose many dynamic risks. In addition, due to a lack of capital, real estate brokers choose to work with local developers, which introduces some operational risks, including delayed construction sites and fraudulent operations. This may hinder the market share expansion of property management.
The Global Property management market is segmented by Deployment, application, end-user, and region. By deployment type, the market is bifurcated into Cloud and On-Premises. The cloud segment had the largest revenue share and is anticipated to maintain its dominance throughout the forecast period. Various end-users, including property managers, housing associations, and corporate occupants, are increasingly adopting cloud deployment. Scalability, usability, cost-effectiveness, and fewer tenant disputes encourage small, medium, and large businesses to adopt cloud-based property management solutions. In addition, cloud-based PMS software includes a data backup feature and seamless data integration, which prevents data loss.
Based on application, the market is categorized into Residential and Commercial. The residential segment held the largest market share and is anticipated to maintain its dominance throughout the forecast period. This expansion can be attributed to rising real estate investments. The residential segment is subdivided into multifamily housing/apartments, single-family housing, and other subsegments. The commercial segment is anticipated to experience the highest growth rate during the forecast period. The expanding global commercial sector is one of the primary factors driving the segment. The increasing demand for cyber risk management, rising disposable income, and evolving consumption technologies, among other factors, are anticipated to stimulate investments in the commercial sector, thereby driving PMS market expansion.
The End-user segment is divided into Housing Associations, Property Managers/ Agents, Property Investors, and Others. The segment of property managers/agents generated the most revenue. The segment is anticipated to maintain its dominance over the forecast period while growing at the highest CAGR. This can be attributed to the worldwide increase in commercial properties and real estate developments. In addition, PMS assists property managers and agents keep track of all properties and maintenance tasks. Consequently, this evolving trend of workplace mobility is driving market expansion.
According to the region, the market is segmented into North America, Europe; Asia Pacific; Latin America, and MEA. The most significant portion of revenues came from North America. The existence of well-known players in the area is to blame for this. Since there are more hotel rooms in the U.S. than in any other country, it currently dominates the regional market for North America. The second-largest market share was attributed to Europe. A significant presence of both residential and commercial buildings and a high level of digitalization in the area are likely contributing factors to the growth. Asia Pacific is predicted to have the fastest CAGR growth in the market.
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