Venture Capital in Proptech Hits $4.2 Billion in Q3 2025
Venture capital investment in property technology (proptech) totalled $4.2 billion across 126 deals in the third quarter of 2025, according to CRETI data, signalling a renewed appetite for asset-backed and data-driven business models. While deal volume held steady, capital concentrated heavily at the top: the ten largest rounds accounted for nearly two-thirds of total funding.
The quarter’s surge was driven by debt, private equity, and late-stage venture financing, led by TAB’s $676 million debt facility in the UK, Property Finder’s $525 million private-equity round in Dubai, Kiavi’s $400 million debt securitisation in the US, and Hometap’s $300 million debt deal. Together, these transactions highlight a shift from speculative consumer platforms to core financial and operational infrastructure for the global property sector.
Financial Infrastructure Leads the Way
Proptech’s biggest advances now lie at the intersection of real estate and capital markets.
In the United States, digital lender Kiavi raised $400 million through securitisation to expand lending for single-family investors. In comparison, Hometap secured $300 million to back its home-equity investment platform—signalling strong institutional appetite for new housing finance instruments. Pacaso, known for fractional home ownership, added a $100 million facility to finance co-owned properties.
Meanwhile, Bilt, which converts rent payments into reward points, raised $250 million to expand its credit and payments ecosystem, and Yieldstreet secured $77 million to scale access to private real estate and credit investments.
Together, these companies are transforming property finance into an institutional-grade asset class, standardising data and performance metrics for securitisation and secondary trading.
MENA Transaction Platforms Take Centre Stage
In the Middle East, proptech innovation focused on digital marketplaces and transaction certainty. Property Finder’s $525 million private-equity round—one of the largest globally this year—positioned it as the leading real estate data and listings platform in the Gulf. Dubai-based Huspy ($59 million Series B) and Holo ($22 million Series A) both drew strong investor backing for digital mortgage origination platforms that integrate listings, financing, and closing services.
The MENA market is reaching a tipping point. The industry is seeing end-to-end transaction systems replace fragmented broker-driven processes. This is the same inflection point the US market crossed a decade ago.
Construction Tech and Automation Regain Momentum
After two slow quarters, investment in industrialised construction and autonomous building systems accelerated sharply.
In the US, Reframe Systems ($20 million Series A) and Dextall ($15 million Series A) drew funding for factory-based building systems using AI and automation to reduce construction timelines and waste. DroneDeploy ($15 million) expanded its robotics and progress-monitoring platform, while Israel’s LightYX ($11 million) attracted capital for precision laser projection systems that eliminate jobsite layout errors.
The standout in automation was PassiveLogic, which raised $74 million Series C to advance AI-native building controls that autonomously manage energy and HVAC systems. Analysts describe it as a “self-driving system for buildings,” moving beyond analytics to physical autonomy.
Climate Tech Gains Industrial Traction
Investment in decarbonisation remained robust. Sweden’s Aira raised $175 million to scale heat-pump manufacturing and distribution across Europe, while US-based Plantd closed $22 million to expand production of carbon-negative structural panels.
These rounds reflect a growing convergence between proptech and cleantech, with investors rewarding companies capable of producing measurable carbon savings and scalable manufacturing output.
AI and Risk Verification Go Mainstream
Artificial intelligence continued to penetrate core property operations. Alongside PassiveLogic’s autonomous systems, the quarter saw funding for Snappt ($50 million debt), which detects document and income fraud in rental applications—highlighting growing institutional interest in compliance and trust infrastructure for property management.
AI in real estate is shifting from chatbot pilots to revenue-impacting automation. Investors are writing larger checks to proven, vertical-specific platforms with operating data.
Market Outlook: From Assets to Systems
Across all geographies, Q3 2025 underscored a decisive transformation: real estate technology is no longer about digitising listings—it’s about systematising finance, construction, and operations.
Capital is flowing to companies that can:
Institutionalise housing finance (Kiavi, Hometap, Pacaso)
Automate physical environments (PassiveLogic, Reframe Systems)
Industrialise construction and materials (Dextall, Plantd, Aira)
Deliver operational efficiency with data feedback loops (Kasa, AirGarage)
This trend points to a more mature, infrastructure-driven phase for proptech—one in which the winners will be those who bridge financial efficiency, energy performance, and manufacturing scalability.
As one venture investor put it, “The next generation of proptech unicorns won’t just help people buy buildings—they’ll change how buildings are financed, built, and operated.”
