Real Estate Software

M&A Update | June 2023

Advancing digitalization, growing environmental awareness in the real estate industry and the accompanying demand for digital solutions (e.g. ERP systems, financial accounting, ESG tracking, etc.) are leading to great pressure to innovate among both property managers and IT service providers. These developments lead to an attractive valuation level for cloud-based and ESG-focused solutions.

As the result of current market trends, the M&A environment in the real estate software sector is characterized by strategic buyers pursuing international, inorganic growth strategies. Companies are focusing on expanding their product and solution portfolios and expanding into new geographical markets. This trend is reinforced by the shift from on-premise solutions to cloud-based solutions, growing environmental awareness and the resulting focus on sustainability aspects, automation with the help of AI technologies and integration solutions. Leading software providers in the real estate sector are focusing on niche segments and increasingly relying on buy-and-build strategies.

This update shows the current developments on the market for real estate software, takes a look at the most important valuation drivers and shows the respective valuation levels.