Proptech combines real estate and technology. The term is used to describe all uses of information technology in the real estate industry. It encompasses everything from digital tools for buying and selling property to smart solutions for operating commercial buildings. In practice, it often refers to start-ups and new business models that challenge the traditional real estate industry with innovative products.

Proptech can be seen as the real estate industry's answer to fintech (finance). It is a digital transformation where technology meets real estate to create more value for both owners, managers and users of commercial buildings. In other words, proptech covers all new digital tools that are being used to make real estate easier, cheaper, safer and more user-friendly.

Global and Nordic proptech trends

 Proptech has gone from being a niche to becoming mainstream in real estate in recent years. Globally, the proptech sector is experiencing strong growth. The sector was valued at around USD 35-40 billion in 2024 and is expected to triple to over USD 100 billion by 2032. Despite a general decline in venture capital, USD 42 billion found its way into proptech investments in 2023.

Artificial intelligence (AI) and the Internet of Things (IoT) are driving much of this growth. These technologies enable everything from predictive maintenance and personalized indoor climate to smart energy management and automated operations. A full 70% of proptech investments now have an AI element, and 3 out of 4 new commercial buildings come pre-equipped with IoT sensors.

Nordic proptech trends

In the Nordics, and especially Norway, we see a strong emphasis on sustainability and user experience. Proptech solutions here often focus on green technology, energy savings and creating great experiences for tenants.

Daniel Butenschøn at Proptech Norway points out that Norwegian and Nordic proptech maintains high quality and is asserting itself internationally, despite less funding the level of innovation is high. A good example is that several Norwegian startups have won awards in the Nordic PropTech Awards.

In 2024, Stavanger-based company PowerPal won for its smart energy management solution that optimizes electricity consumption and emissions. The same year, Bergen-based Carrot won in the Property Management category with a solution that uses real-time data to motivate tenants to recycle better, benefiting both the environment and the landlord's costs.

Such successes illustrate how Nordic proptech players are at the forefront, especially in sustainable buildings, while delivering bottom line value. Another trend in the Nordics is the collaboration between established real estate companies and technology companies.

The industry network Proptech Norway brings together entrepreneurs, real estate players and investors precisely to share insights and promote sustainable development of buildings and cities. Proptech has gone from “nice to have” to must-have also in our part of the world, and both public and private initiatives are helping to scale new solutions.

Key technologies and innovations within Proptech

Proptech encompasses a number of technologies, but some stand out as particularly central:

IoT and sensors

Smart sensors connected to the internet are making buildings “digital” by collecting data on everything from temperature, air quality and energy consumption to movement and access. This data is then used to automatically control the buildings. For example, sensors and automation systems can adjust lighting and ventilation in real time based on whether people are present. Such smart buildings optimize operations – they save energy and adapt the environment for better comfort.

IoT devices also enable predictive maintenance: by monitoring vibration, temperature, water pressure, etc., the system can anticipate failures before they occur. This allows you to replace a part in an elevator or ventilation system before downtime occurs. This reduces unplanned downtime by up to 50% and maintenance costs by 20-25%. IoT is thus the foundation of proptech – the data collection that makes the building smart.

For a deeper understanding of how technology is changing the workplace, we recommend the whitepaper “The Digital Workplace 2025” – an in-depth review of the trends shaping the office environment of the future.

Artificial Intelligence (AI) and Data Analytics

AI is at the heart of many proptech solutions. Using machine learning, systems can analyze large amounts of data from sensors and equipment, find patterns, and make predictions. One example is predictive analytics for building operations: AI can learn the usage patterns of a building and predict how many people will be present on a given day or hour.

Such forecasts make it possible to plan cleaning, security, heating and even canteen operations more precisely. In practice, this means everything from lower electricity bills (you only heat/cool when needed) to less food waste in the canteen (you prepare the right amount of food). For example, Izy has tested AI models that are able to predict the number of people in the building with ~95% accuracy a few weeks in advance. This provides the basis for cutting energy and food waste significantly – sustainability solutions driven by data.

AI is also being used for advanced security (e.g. facial recognition for access control) and to optimize space utilization (e.g. analyzing office space usage and suggesting better layouts). With generative AI, we also see chatbots and smart assistants providing tenants with information or handling inquiries automatically. Overall, AI provides insights from building data and makes buildings proactive rather than reactive.

Digital platforms and apps

Another important innovation in proptech is the emergence of digital platforms that connect people and services in buildings. These include mobile apps for tenants, web portals for property managers, and collaboration systems for operations personnel. Such platforms act as the central platform in a building – a place where people can book meeting rooms, report service needs, get news from Landlord , control visitor access and much more, all in one solution.

Today, tenants expect “everything to be an app” – that they can use the building as seamlessly as a smartphone. This has made tenant experience platforms the central hub of the building: An app/portal brings together all services in one user-friendly solution. Examples include an app where you can buy lunch in the cafeteria, lock yourself in the office, reserve a bicycle parking space and chat with the reception.

Before Landlord The platform means that you get a direct communication channel to everyone in the building (no more notices on the door or emails that go unread). For service providers (such as cleaning, canteen, caretaker) it means simpler logistics and common tools – they can plan and deliver their services more efficiently. Digital platforms are simply the hub where the proptech threads come together.

Sustainability technology

Sustainability is a common thread running through modern proptech. Buildings account for a significant share of energy consumption and emissions, so technology is geared towards making buildings greener. This includes everything from energy optimization (smart control systems as mentioned above) to solutions for waste management and recycling.

For example, a proptech company like Carrot focuses on increasing recycling rates in buildings using digital incentives. Other innovations include material banks (digital marketplaces for the reuse of building materials), sensors for water and heat consumption with direct feedback to users, and reporting tools for ESG data (environmental, social and governance parameters) related to buildings.

Green proptech helps owners meet strict climate and environmental requirements while often providing cost savings. A concrete example: Switching to demand-driven operation of buildings (e.g. ventilation and lighting only on when needed) has been shown to cut energy consumption by around 25% and pays for itself in less than a year when electricity prices are moderate. In other words, proptech makes sustainability good business, by combining green goals with financial gain.

Read more about Proptech next week in Part 2 .