Canada’s proptech sector reaches ‘maturity’ as AI adoption grows, report finds

Canada’s proptech sector is looking more grown-up. Companies raised $450 million in 2025, as AI moved out of the hype phase and into real-world use, according to a new report.

Proptech Collective’s Proptech in Canada 2025 report, released Thursday, tracks more than 590 active Canadian proptech and construction-technology companies, up from 535 last year.

Now in its fifth year, the report suggests the sector has hit a “maturity moment,” with fewer new startups but stronger overall companies, a more disciplined approach to growth, and a bigger focus on getting customers to use their products.

Firms strive for sustainability as capital gets tighter

Stephanie Wood, founding member of Proptech Collective and vice president of venture capital fund Alate Partners, said Canada’s proptech industry saw about 50 founding rounds a year at the peak in 2021 and 2022. 

That number came down to 30 rounds in 2025. While fundraising has been tougher, that harsher environment has caused companies to build a sturdier foundation that is less reliant on venture capital. Rather than raising funds, many companies are instead investing energy in gaining traction in their respective markets and stabilising operations, said Wood. 

“Companies have been forced to look at their business models and make sure that they are sustainable without being funded,” Wood told Real Estate Magazine. “We’re still seeing slots of investment in the industry, but it was this maturing to making sure you’re not growing at all costs, and that your company is viable.”

AI going mainstream

Stephanie Wood (contributed)

That reset is starting to pay off, as more technology is being rolled out inside major real estate, development and construction firms instead of sitting in pilot mode.

AI is a big part of that shift, with tools now being embedded directly into everyday workflows at an accelerated pace, said Wood, noting that many of the funding rounds that took place in 2025 involved companies with AI elements. 

She said perhaps the most accessible application for AI for real estate agents is writing listing descriptions, but that’s just the tip of what real estate professionals can accomplish, said Wood.

“Lead management is an area across commercial and residential where we’re seeing more AI solutions come into play,” she said.

Marketing is another area with big potential for streamlining and efficiency. 

This week, Toronto company Mave, which has built an AI assistant for agents and brokerages to save hours every week on marketing tasks, closed a $5-million funding round. Wood’s company Alate Partners is a backer.

“AI becoming a team member is really going to happen, and the companies that lean in and implement it in their processes where they can is going to be a huge trend,” said Wood.

Wood said companies are increasingly looking for ways to expedite work, and AI tools “exponentially increase output and impact.”

“I think the way that we work is fundamentally going to change over the next year or two,” she said.

Opportunities for Canadian proptech

The report notes several advantages Canada’s proptech ecosystem has going for it, including a strong showing of large investors. It says 11 of the top 100 global investors with the largest allocation to real estate are based in Canada.

In 2025, real estate and construction accounted for more than 20 per cent of national GDP, showcasing both the sector’s importance and the opportunity for proptech. 

Federal spending also supports growth in the sector, with the government committing to spend $742 million on AI and $13 million on new housing through Build Canada Homes program.

Industry landscape

Of the 590 active proptech companies tracked in the report, 90 per cent are located across six key hubs: Toronto, Vancouver, Montreal, Calgary, Kitchener-Waterloo and Edmonton. 

Approximately 50 per cent of startups are in the Greater Toronto Area.

Distribution by region: 

• Ontario – 56 per cent
• British Columbia – 18 per cent
• Quebec – 12 per cent 
• Alberta – 10 per cent
• Prairies – One per cent 
• Atlantic Region – Two per cent

Source: Proptech Collective

Of these companies, 25 per cent were founded within the past five years. About 65 of companies are at the pre-seed/seed stage.

Across all the companies tracked, 21 per cent serve the construction market, 38 per cent serve commercial and 41 per cent residential. 

The medium amount raised in 2025 was $3 million.