About 78% of investors, an index record high, expect increased M&A activity in 2025. That reflects a pattern of consolidation and acquisition, where comprehensive platforms increasingly purchase standalone solutions to backstop and extend their offerings. CBRE’s purchase of Industrious was a high-profile example of “strategic acquisitions as a competitive advantage.”

Investors also expect more deals and are interested in products that address large markets. More than a third (38%) were primarily interested in property management; 29% were interested in construction technology. About 44% expect to increase their investment pace over the next 12 months, compared to 29% at mid-year 2024. Valuation swings since 2021 emphasize the continued need for a disciplined approach.

The startup confidence index was 7.9 out of 10, up from 5.7 at mid-year. The change “reflects improving macroeconomic conditions” and the product and technological opportunities from artificial intelligence advancements and changes in regulation. Global VC investments in AI-powered proptech companies hit $3.2 billion.

Almost half (49%) of startup founders expect access to venture capital will be easier, up from 26% at mid-year, with 64% expecting to double revenue growth in the next 12 months. Fifty-seven percent of founders anticipate their market space to become more competitive over the next 12 months, up from 37% at mid-year. About 39% of founders are targeting single-family residential assets for commercial deployment. And 52% of startup founders expect a “significant liquidity event” for their companies in the next three years. That was up from 37% at mid-year.

The firm used a “purposive sample of active investors and startups in real estate technology to confirm quality data.” Given the lack of numeric data about the sampling and margin of error measure, it is impossible to know the significance of a slight change in the index.