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The Canadian PropTech industry is undergoing a transformative shift. As highlighted in the 2024 PropTech in Canada Report by Proptech Collective, the past year was marked by economic headwinds, a heightened focus on sustainability and the swift integration of artificial intelligence (AI) across the real estate industry. Looking ahead to 2025, AI-driven efficiencies, modular construction and integrated digital transactions are set to redefine how properties are built, managed and sold.

AI: Reshaping real estate and construction

On the path of PropTech innovation, AI improves efficiency at almost every touch point within these segments. According to the report, AI is transforming construction planning by “analyzing regulations and optimizing compliance processes, speeding up approvals and reducing bottlenecks in urban planning.” AI also makes construction safer and more predictable by improving scheduling, automating risk management and optimizing material use.

For example, in residential real estate, AI is helping streamline the process of lead-to-sale and lead-to-lease by automating manual tasks currently performed by brokers and property managers. “AI-powered tools act as copilots for real estate agents, assisting with scheduling, data analysis and client interactions, enhancing productivity and decision-making,” the report states. AI also plays a key role in tenant screening by analyzing large datasets to predict reliability and risk.

Modular construction and sustainable materials

With labour shortages and rising costs, modular and offsite construction methods are gaining momentum. The report highlights that “assembling components offsite shortens construction timelines, reduces costs and improves quality control.” This trend is being reinforced by government-backed initiatives such as the CMHC Housing Supply Challenge, which provides funding to companies developing scalable, innovative housing solutions.

Sustainability is also driving material innovation. Recycled components and low-carbon concrete are increasingly being used to reduce environmental impact while improving building performance.

Integrated and digital real estate market

The digitization of real estate transactions is reshaping the industry. PropTech companies are integrating financing, insurance and transaction management into single platforms, reducing friction for buyers and sellers. The report notes that “homebuyers and sellers are demanding more seamless, efficient processes,” and that new platforms simplify transactions by consolidating services.

PropTech tools offered by companies such as Blackline and Mave are eliminating inefficiencies, reducing friction in the sales process and enhancing the overall experience for buyers and sellers. The push toward automation and smarter digital workflows is a trend that will only accelerate in the coming years.

Looking ahead

Despite a tough funding environment, Canada’s PropTech sector secured $800 million in investments in 2024, with more than 65 M&A transactions signaling consolidation. As 2025 unfolds, AI, automation and sustainability will continue to drive industry change. With a deep talent pool and growing investor interest, Canada remains a strong hub for PropTech innovation. The challenge lies for industry leaders to adapt to these rapid advancements and leverage them for long-term success.