Trends and AI Potential in Proptech

February 20, 2025

Written By Sebastien Gittens, Natalia Iamundo, Matthew Flynn and Michelle Yung

Proptech Collective just released their latest report on key trends that will shape Canada’s proptech ecosystem in 2025. AI is emerging as a transformative force, and the report explores its potential impact across the commercial real estate and construction sectors.

Here is a look at Proptech Collective’s key findings on these leading trends and the potential of AI.

Commercial Real Estate

Emerging Trends

Decarbonization and Grid Infrastructure

Asset managers are increasingly prioritizing portfolio optimization and energy-efficient investments to enhance returns on investment. In 2025, data centers are emerging as a pivotal commercial asset class, driven by the growing influence of artificial intelligence. This shift underscores the escalating demand for sustainable energy solutions and robust grid infrastructure capable of supporting rising power requirements.

Investment Technology

As interest rates improve and the commercial real estate sector regains momentum, the volume of transactions is expected to increase this year. Consequently, technologies which facilitate the management and execution of transactions will be crucial in improving efficiencies.

Building Systems and the Internet of Things (IoT)

Smart building technologies—such as sensor-based automation and predictive maintenance—are revolutionizing property management. These innovations provide real-time insights, enhance operational efficiency, and improve the experience of tenants. The integration of these systems will be essential in maximizing their full potential.

The Role of Artificial Intelligence

Building Energy Efficiency

Advanced deep learning algorithms are increasingly used to forecast energy demands, automate HVAC systems, and minimize energy consumption, leading to both financial savings and a reduced environmental footprint.

Grid Optimization

AI is playing a transformative role in energy management by analyzing consumption patterns and optimizing the timing of electric vehicle charging. These advancements contribute to improved grid efficiency and cost savings.

Portfolio Decision-Making

By leveraging vast datasets, AI enables investors to assess various factors, including socioeconomic and environmental, with greater precision—allowing for more informed evaluations of asset resilience and long-term stability.

Data Abstraction

Generative AI facilitates the extraction and summarization of critical information from leases, operational data, legal contracts, and other documents. This capability streamlines traditionally manual tasks and enhances data accessibility.

Construction

Key Trends

Modular and Offsite Construction

Innovative construction approaches are responding to labor shortages and the need for increased efficiency. Offsite assembly of building components reduces construction timelines, lowers costs, and improves quality control.

Workforce Technology Enablement

Emerging technologies focusing on time tracking, worker safety, and productivity optimization are reshaping workforce management. These solutions enhance efficiency by monitoring performance and incentivizing goal achievement. As the labor market contracts, such technologies will become essential in maintaining productivity and addressing skill gaps.

Sustainable Materials

The construction industry is increasingly adopting eco-friendly, durable, and cost-effective materials, such as recycled composites and low-carbon concrete. These innovations contribute to sustainability while improving structural performance. Additionally, researchers are exploring smart materials that can adapt to environmental conditions.

The Role of Artificial Intelligence

Engineering

AI-driven advancements are refining concrete composition, enhancing material durability, and automating construction processes, thereby improving efficiency and sustainability in the industry.

Design

Generative AI is streamlining the architectural design phase by optimizing building layouts, reducing planning time, and lowering early-stage development costs.

Planning

AI-powered tools are transforming zoning and permitting procedures by analyzing regulatory frameworks and automating compliance processes. These advancements expedite approvals and mitigate administrative bottlenecks.

Scheduling & Risk Management

AI enhances construction scheduling by optimizing workflows, automating routine tasks, and mitigating delays. Additionally, predictive analytics improve risk management by providing real-time insights and proactive solutions to potential challenges.

Proptech Collective’s full report Proptech in Canada: 2024 in Review & 2025 Trends is available here.

Bennett Jones Proptech practice operates at the convergence of real estate, finance, technology and construction. To discuss the opportunities and legal considerations in the Canadian proptech sector, please contact one of the authors.

Authors