Valley Bank, in partnership with Nine Four Ventures, MetaProp, and PitchBook, has released its fourth annual report, The Present and Future of Proptech, revealing a cautiously optimistic outlook for the industry in 2025. Despite recent economic headwinds and a slowdown in private capital investment, the report points to areas of strong potential—most notably in AI-powered tools and sustainability-focused solutions.
Global real estate investment is projected to rebound to $952 billion this year, with sectors like suburban housing and industrial leasing showing resilience. Though early-stage VC activity dipped in 2024, later-stage Proptech companies have maintained strong valuations, averaging $101.9 million pre-money.
According to Valley Bank CEO Ira Robbins, the report emphasizes how advanced data and AI can streamline mortgage lending and real estate decision-making. MetaProp’s Zak Schwarzman and Nine Four Ventures’ Kurt Ramirez both underscored the shift toward quality investments and the rising importance of technology integration across the real estate value chain.
The report segments the Proptech space into five focus areas—asset utilization, finance and investments, construction and renovation, property management, and transaction solutions—and outlines how strategic innovation in these categories will define the next phase of real estate transformation.
In a complex but evolving landscape, Valley’s findings offer a grounded, forward-looking perspective on how Proptech can continue to drive impact through efficiency, adaptability, and intelligent growth.