Market Intelligence From the Trenches: What We’re Seeing in Real Estate Technology and AI
Aug 19, 2025
After spending the last 8 years serving over 700+ real estate developers with VR/AR solutions through VSN, and now building Path’s AI-powered buyer intelligence platform, I wanted to share what we’re seeing on the ground in real estate technology and AI. The data tells an incredible story that most people aren’t paying attention to.
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The $1.2 Trillion Opportunity Everyone’s Missing
When Manuel from TCC and the Ritz-Carlton told us “I haven’t seen anyone not say ‘wow’ when they experience the VR,” it crystallized something we’ve been observing across our entire customer base. The luxury real estate market isn’t just growing — it’s being fundamentally transformed by technology, and most people are missing the scale of this opportunity.
The numbers are staggering: $1.2 trillion global luxury real estate market with $3.2 billion in PropTech investments flowing into AI-powered solutions in 2024 alone. But here’s what the data doesn’t capture — the behavioral intelligence goldmine we’re sitting on.
What Our Customers Are Teaching Us
Working with developers like Hines ($93B AUM) and Kolter Homes ($36B AUM) has given us front-row seats to luxury buyer behavior that most people never see. When we analyze the data from our virtual tours, patterns emerge that completely change how you think about this market:
Luxury properties ($1M+) have been the fastest-growing segment for 21 consecutive months. We see this directly in our customer pipeline — developers are scrambling to differentiate in an increasingly competitive market.
77 out of 100 tracked global markets are experiencing positive growth, with hotspots like:
Seoul: 18.4% annual appreciation
Dubai: $63.5 billion in sales across 80,000 transactions
Miami-Dade: 6.6% increases in $1M+ sales (where we’re seeing massive demand)
Chicago: 35% growth in $4M+ properties
But here’s the kicker: 88% of ultra-luxury deals are completed with cash. This fundamentally changes the buyer qualification process. Traditional financing-based lead scoring becomes irrelevant.
The Virtual Tour Revolution (And Why Most People Are Doing It Wrong)
Here’s where our VSN background gives us unique insight. We’ve been creating immersive experiences for luxury developers since 2020, and the ROI metrics are undeniable:
Properties with advanced virtual experiences:
Generate 49% more qualified leads
Sell 20–31% faster
Command 4–9% higher sale prices
The virtual tour market is exploding from $1.2 billion in 2023 to a projected $15.9 billion by 2034 (29.3% CAGR). But here’s what everyone gets wrong — it’s not just about the tours themselves, it’s about the behavioral data.
When we track user engagement in our Path tours, we see:
3–6x longer viewing times compared to photo listings
87% more total views than traditional presentations
8–12 minute average session durations vs. 90 seconds for standard real estate
The insight that changed everything: We realized we weren’t in the virtual tour business — we were in the buyer prediction business.
Why CoStar Paid $1.6 Billion for Matterport
CoStar’s February 2025 acquisition of Matterport for $1.6 billion (9.4x revenue multiple) was not about the fact that they create 3D tours. CoStar understands that extracting behavioral intelligence from spatial data is the future. This is the exact future that we’ve been building with Path. We are already ahead of the curve.
They saw what we see: 90% of the luxury buyer journey happens before first agent contact, creating massive opportunities for AI-powered behavioral tracking and intent prediction.
So Why Are We All-In on Behavioral Analytics?
The AI performance data we’re seeing validates our entire thesis:
University of Florida research shows machine learning models reduce forecasting error by 68% compared to traditional methods. But the real-world examples are even more compelling:
Compass generated $150+ million incremental revenue using AI buyer prediction
94% higher win rates for AI-enhanced prospecting
Follow Up Boss users report 70% lead volume increases
At Path, we’re seeing similar results. Our behavioral analytics help sales teams predict which prospects will close with unprecedented accuracy. The AI real estate market is projected to grow from $2.9 billion (2023) to $41.5 billion (2033) — a 30.5% CAGR that reflects what we’re experiencing firsthand. We’re banking on the fact that behavioral analytics will get better as data sources improve + the fact that more people will be virtually touring properties as the technology improves… So we are going to improve the technology.
McKinsey estimates AI could generate $110–180 billion annually for the US real estate industry. That’s not hype, It’s already happening now.
Luxury Buyer Behavior: The Insights That Built Our Business
This is where our real competitive advantage comes from. Luxury buyer journeys span 12–18 months compared to 3–6 months for standard properties. Ultra-luxury ($10M+) extends to 18–24 months.
Most tech companies see this as a problem. We see it as the biggest opportunity in real estate. Move more properties faster, de-resk, and de-leverage. That’s the name of the game.
The Pain Points Every Luxury Developer Faces
Through hundreds of customer conversations, we’ve identified the core challenges:
45% of luxury leads struggle with financial documentation complexity
60% maintain flexible, undefined purchase schedules
Lead conversion rates average 1–2% industry-wide (top performers achieve 4–7%)
Referral leads convert at 25% vs. 8% for property portals
Here’s the insight that launched Path: Luxury buyers spend 45–90 minutes daily during active research phases, with average session durations of 8–12 minutes. That’s a goldmine of behavioral data that no one was capturing, and that noone even knew they needed.
Generational Insights That Drive Our Product Roadmap
Our customer data reveals distinct generational patterns:
Baby Boomers (42% of luxury market):
95% complete transactions with cash
Expect white-glove, relationship-based service
Still prefer phone calls and in-person meetings
Millennials (29% of market):
8–12 month online research periods before agent contact
Demand seamless digital experiences across all touchpoints
Heavy social media and review site usage
Generation X (24% of market):
$130,000 median household incomes
6–9 month more decisive purchase cycles
Balanced approach between digital tools and personal service
These insights directly inform how we design Path’s AI personas and behavioral triggers.
The PropTech Investment Explosion (And Why Timing Is Everything)
The numbers validate what we’re seeing in our fundraising process:
PropTech market: $27.3-$41.8 billion globally in 2024, growing at 15–16% CAGR. North America dominates with 38–45% market share.
2024 Investment Highlights:
$3.2–3.5 billion total VC investment in real estate technology
$4.5 billion in construction technology (largest category)
$3.2 billion in AI & automation (our sweet spot)
32.5% increase in total dollar volume
Strategic acquisitions validate our approach:
CoStar Acquires Matterport: $1.6 billion (behavioral data play)
ServiceTitan IPO: $9 billion market cap
PropertyGuru-EQT: $1.1 billion acquisition
Revenue multiples: 16.3x for leading PropTech vs. 6.1x general SaaS
This isn’t just market data — it’s validation of our strategic positioning in behavioral analytics.
The Massive Adoption Gap (Our Biggest Opportunity)
Here’s the disconnect that creates our market opportunity:
Despite proven ROI metrics:
Only 15% of real estate firms use digital twin technology
22% of house listings include virtual tours
28% of professionals actively use AI tools
40–60% of agent time wasted on unqualified leads
But the investment is there:
37% spend $50-$250 monthly on technology
24% spend over $500 monthly
48% of firms increased tech budgets in 2024
What’s the gap? Most solutions don’t deliver measurable ROI for luxury real estate’s unique requirements.
Path bridges this gap by focusing specifically on behavioral analytics for extended luxury sales cycles.
Our Investment Thesis: Why Path Wins
The convergence we’re seeing creates perfect conditions for Path’s success:
1. Predictive Lead Scoring Systems
We’re addressing 1–2% average conversion rates with demonstrated 4–7% improvements for top-performing implementations. Our Ritz-Carlton pilot shows 73% accuracy in predicting buyer intent based on virtual tour behavior.
2. Extended Sales Cycle Optimization
12–18 month luxury buyer journeys need automated nurturing and behavioral trigger identification. Our platform learns from every interaction to predict optimal engagement timing.
3. Generational Segmentation Technology
We address distinct preferences between tech-native Millennials/Gen Z and cash-dominant Baby Boomers through adaptive AI personas.
4. Integration Platform Approach
We solve data silo challenges across CRM, marketing automation, and transaction management — something fragmented point solutions can’t do.
Why We’re Positioned to Win
Market timing favors innovation. With only 28% AI adoption among real estate professionals and demonstrated 94% higher win rates for AI-enhanced prospecting, we’re riding a massive adoption wave.
Our competitive advantages:
8 years serving 700+ developers through VSN (deep market knowledge & connections)
Luxury market specialization vs. general real estate solutions
Proven customer traction with Ritz-Carlton, Hines, and major developers
Behavioral intelligence focus vs. traditional demographic qualification
The $3.2 billion in AI-powered PropTech investment during 2024, combined with proven ROI metrics including 68% error reduction improvements and $150+ million incremental revenue examples, validates market readiness for our approach.
The Actual “Why”
We’re not just building another PropTech company. We’re creating the behavioral intelligence layer that makes real estate sales predictable and scalable.
The opportunity: $700M+ addressable market with massive adoption gaps, proven technology ROI, and first-mover advantages for sophisticated buyer prediction platforms.
The validation: Our customers like Ritz-Carlton and Hines are already seeing results that translate to millions in additional revenue per project.
The timing: Perfect convergence of luxury RE market growth, technology adoption acceleration, and institutional investment momentum.
Early-stage companies addressing buyer prediction, lead qualification, and sales process optimization present compelling opportunities in this rapidly expanding, technology-hungry market segment.
We’re creating a new wave.
Want to dig deeper into the data behind these insights? Let’s Talk