Houlihan Lokey – PropTech Market Update, Sep 2025

The main theme of the report is the analysis of the PropTech market for the first half of 2025.

Key findings include elevated interest rates and market volatility in 1H 2025, driven by geopolitical tensions and tariff uncertainty, which slowed capital raising in PropTech. Despite reduced activity, the PropTech market remains large and resilient, with funding of approximately $2.3 billion and 55 M&A deals in 1H 2025. In the second half of 2025, M&A and capital raising activity in PropTech is already increasing. Key technology trends include the growing use of AI and predictive analytics, the expansion of embedded payments, and increased activity in construction technology. PropTech stocks in public markets are rising; the Houlihan Lokey PropTech Public Market Index increased by 32% over the last 12 months in 1H 2025.