Property Management Services Market
Property Management Services Market Analysis, By Service (Rent Collection, Mortgage & Utility Payment, Leasing, Legal & Accounting Services, Repair & Maintenance, Others), By Property Type (Residential, Commercial, Industrial, Special Purpose Properties), & Region - Global Market Insights 2023-2033
Analysis of Property Management Services Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Property Management Services Market Outlook (2023-2033)
The global property management services market is expected to reach US$ 15 billion in 2023. The market is predicted to expand at a CAGR of 7.3% and reach a valuation of US$ 30.4 billion by the end of 2033.
Under stressed market conditions, property-owning enterprises find it challenging to have an in-house team to manage their properties, and resultantly outsource this task to professional companies. As per aggregated estimates, close to 3% of total revenue generated from properties is allocated to the effective management of those properties.
Across the world, governments and corporates are spending huge amounts on infrastructural development. Especially in emerging markets, spending on real estate development is at an all-time high. Countries such as China, India, Indonesia, and South Korea are investing heavily in both residential and commercial real estate development.
To take care of such properties, owners/companies/governments require professional help. That’s where property management service companies come into the picture. These property management companies provide several services such as renting out the property, rent collection, repair & maintenance, and legal services, among others.
Rising urbanization along with increasing concerns for the safety of the properties will drive the demand for property management service companies. Technology advancements in the field of property management have enabled market players to serve and manage several clients with ease.
- Short Term (2023-2026): The effect of COVID can be seen in the property management industry. The hybrid work culture and remote working have affected commercial real estate businesses. This has adversely affected property management companies and the impact of the same can last up to the next 2 to 3 years.
- Medium Term (2026-2029): The market will start growing significantly due to an increase in real estate demand. The growing middle-class population across the world, especially in developing markets, will drive the demand for both residential and commercial spaces, leading to a higher need for property management services.
- Long Term (2029-2033): Adoption of technology in both real estate development and management will result in the improved efficiency of market players. Widespread use of technology such as building information technology (BIM) and artificial intelligence will shape the future of the property management market.
Market Size (2022A)
US$ 14 Billion
Estimated Market Value (2023E)
US$ 15 Billion
Forecasted Market Value (2033F)
US$ 30.4 Billion
Global Market Growth Rate (2023-2033)
North America Market Share (2022)
East Asia Market Growth Rate (2023-2033)
United States Market Growth Rate (2023-2033)
Key Companies Profiled
Know thy Competitors
Competitive landscape highlights only certain players
Complete list available upon request
Factors Accelerating Demand for Property Management Services
“Increased Spending on Real Estate Development”
Real estate as an industry is witnessing tremendous demand from both residential and commercial sectors. The increasing population along with rising spending power has boosted the demand for real estate properties.
Even after having one house for residential use, people are buying an extra one or two properties for investment purposes. There is an expectation that the population will continue to rise and there will be ample demand for rental properties. Property management companies help clients (residential/commercial/industrial) in letting out their properties or managing the same on their behalf. Corporations are also investing big time in real estate, especially in emerging markets, due to lesser buying and management costs.
“Technological Advancements to Improve Service Offerings”
Like any other industry, real estate management has also been highly impacted by the adoption of technology. Use of technology from the time of development till possession has increased manifold, resulting in greater efficiency and better customer experience.
With the help of technology, a property management firm can now easily show the property to interested prospects, that too in a 3D model. Legal, accounting, and all other administrative work can be performed without physically visiting the area. This has certainly helped both real estate management companies and their clients to do business from anywhere without meeting in person regularly.
Factors Affecting Growth of Property Management Industry
“Lack of Skilled Workforces”
In real estate development, a majority of the workforce has to perform their duties behind the curtain, which means that they do not have to interact with prospective clients at all. However, the case is not the same for the property management industry, where a majority of the workforce needs to be well-trained to tackle any kind of queries/concerns raised by their clients.
The property management industry is currently facing a great shortage of skilled personnel due to low pay, extended working hours, no job security, etc. Property management and unexpected repair are also major concerns for real estate management companies. Keeping the margin high during a slowdown or vacant property is difficult, as many times, these property management companies have a percentage cut from the total revenue generated by the particular property.
Image presents market analysis of property management services based on service and region. Under service type, leasing services account for 27% share of the market.
More Insights, Lesser Cost (-50% off)
Insights on import/export production,
pricing analysis, and more – Only @ Fact.MR
U.S. Market Commands Highest Share
The U.S. property management services market is one the largest in the world owing to high property ownership in the country. The U.S. real estate market is highly competitive and mature at the same time, resulting in high demand for property management services.
The U.S. property management market was valued at US$ 3.9 billion in 2022. This number is expected to double in the next 10 years. Most of the demand comes from commercial spaces, as they are the ones spending millions of dollars in keeping the property well-maintained and full throughout the year.
Since rent is very high in the U.S., people do not want to keep their properties vacant, and with their busy lives, it is impossible for them to keep an eye on managing the property. That is why they outsource these services to professional property management companies.
Indian Property Management Market to Experience Robust Growth
India is witnessing a plethora of opportunities in the real estate development market. Indian real estate companies are receiving orders from both residential and commercial ends. The trend of multi-story buildings, especially in residential spaces, is ultimately leading to a higher demand for professional property management companies to look after the developed project.
These real estate management companies take care of every aspect of property management on their client’s behalf. The Indian Property management service market is expected to grow at a double-digit CAGR during the forecast period. Rapid increases in the middle-class population along with rising disposable income have accelerated the demand for real estate properties in India, leading to increased demand for real estate management services.
Leasing as a Service Commands Highest Market Share
Leasing is the first and most important step in the property management market. When a property management company takes ownership of managing a particular property be it residential or commercial, the first step they follow is to rent it out to the next possible customer. Rest all services provided by these real estate professionals in addition to the leasing services.
The property owner pays a fee plus a certain amount of cut from the total rent received, and when the property is vacant, the property management companies lose a cut from their fees. That is why leasing as a service holds the largest market share. Additionally, there are many companies that only provide services limited to renting out and rent collection. Rest all other services are managed by the property owner itself.
Commercial Property to Generate Highest Revenue for Property Management Companies
Property management services are generally required by commercial and industrial spaces. As still most of the residential properties across the globe are single-story or single-family houses, and these properties do not require professional management services, as the owner’s/family members take care of everything on their own.
However, the demand for professional property management services from commercial spaces is growing at a double-digit growth rate and is expected to generate revenue of US$ 6.4 billion for the year ended 2022. As commercial properties are big in terms of size and the burden of welcoming a larger population creates a demand for professional management. Since commercial properties are used by a large number of people and mostly these places consist of workplaces, manufacturing plants, and recreational places, they require timely cleaning and maintenance to safeguard the general population.
Don't Need a Global Report?
save 40%! on Country & Region specific reports
Prominent players associated with property management services are Apartment Management Consultants, Avison Young, BH Management Services, Buildium, CBRE Group Inc., Colliers International, Cushman & Wakefield, Duke Realty Corp, Greystar, Hines, Lincoln Property Company, Stream Realty Partners, The RMR Group, Tishman Speyer, Vacasa, and Winn Companies.
The global property management service market is competitive owing to the presence of multiple large and regional organizations. The industry has witnessed some notable mergers and acquisitions in the recent past. The adoption of technology and the entry of new companies are giving tough times to well-established market players.
- In august 2022, Avison Young agreed to acquire the property management businesses of Madison Marquette. This acquisition includes 20 million square feet and 235 team members.
- In January 2022, Greystar Real Estate Partners, LLC, a global leader in investment, development, and management of real estate property, completed the acquisition of 5 properties worth US$ 400 million.
Fact.MR has provided detailed information about the providers of property management services positioned across regions, revenue growth, and service offering expansion, in the recently published report.
Segmentation of Property Management Services Industry Research
By Service :
- Rent Collection
- Mortgage & Utility Payment
- Legal & Accounting Services
- Repair & Maintenance
- Others (Not Covered Elsewhere)
By Property Type :
- Special Purpose Properties (Schools, Colleges, Hospitals, Hotels, Others)
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa
- FAQs -
The global property management services market is expected to grow at a CAGR of 7.3% through 2033.
The global market for property management services is expected to reach US$ 30.4 billion by 2033.
The market in East Asia is set to exhibit the highest CAGR of 7.7% over the decade.
Leasing as a service holds the largest share 27% of the total market.
North America holds a leading share of 31% of the worldwide market.