Highlights from SEG’s 2020 Real Estate Software Year End Review

SEG’s 2020 Real Estate Software Year End Review includes recent M&A trends, public market comps, and software vendor market maps across the multifamily, commercial, residential, construction tech, and hospitality/vacation rental segments. Continue reading for some key findings from our report.

Highlights:

The COVID-19 pandemic has driven increased demand for technology in the real estate segment in an effort to do more with less, and react to potential structural shifts in how real estate is utilized and managed. This has had a downstream impact on M&A activity. Select examples include:

  • Online rent payment solutions for the multifamily segment (MRI/RentPayment(2))
  • Space utilization solutions for the commercial segment (Archibus/SpaceIQ)
  • Residential home improvement marketplaces (PropTech Acquisition Corp./Porch and QuinStreet/Modernize)

In response, real estate technology M&A activity is projected to reach 150 deals in 2020, an approximate 25% increase over 2019. This marks the seventh consecutive year of record deal activity in the space and largest YOY increase in deal volume since 2016. In comparison, overall software industry M&A activity is projected to be flat or slightly down for 2020. (See Slide 14)

Technology-focused private equity firms remain extremely active across virtually all segments of real estate, accounting for approximately half of all deals in 2020. (See Slide 15)

Notable long-term drivers of strategic M&A activity in the segment include mobile engagement tools, IoT, AI, analytics, and international expansion.

SEG Software Vendor Market Maps:

SEG’s software vendor market maps include over 900 companies, spanning the multifamily, commercial, residential, construction tech, and hospitality/vacation rental segments.

Download the full report on our research page: SEG’s 2020 Real Estate Software Year End Review.