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The Current State of Digital Transformation in Real Estate 2025

In a comprehensive survey conducted by seven real estate tech companies in collaboration with a national housing newspaper, a striking 98.6% of participants expressed the need for digital transformation (DX) in the industry. With a total of 1,286 respondents, the survey sheds light on the ongoing evolution of the real estate sector as it embraces new technologies to enhance operational efficiency and productivity.

Key Findings of the Survey

The survey's results show significant support for DX initiatives:

• - Emphasis on DX: An overwhelming 98.6% of respondents believe that DX should be advanced in real estate, with 68.0% actively working on or planning DX initiatives.
• - Experience with DX: Approximately 76.2% of those who have engaged in DX efforts reported tangible benefits, particularly in boosted employee productivity, reduced overtime hours, and overall business performance improvements.

Duration of Engagement in DX

Moreover, a substantial 67.4% of businesses have been on this journey for over a year, with 31.9% engaging in DX for three years or more. These statistics underscore that many organizations are not just initiating but are committed to a long-term digital strategy. The primary goals behind DX include improving operational efficiency (92.9%) and increasing productivity (60.2%).

Financial Aspects of DX

When it comes to budget allocation for DX, 69.6% of participants reported an annual budget of less than 1 million yen. Notably, 80.8% of those spending under 500,000 yen have 10 or fewer employees, while 83.7% of those with budgets over 5 million yen have more than 101 employees, indicating a strong correlation between company size and DX budget.

Barriers to DX Adoption

Despite the strong interest, 48.6% of respondents who are not pursuing DX cited financial constraints as a primary barrier. Coupled with other factors like a lack of understanding on how to implement DX and insufficient personnel, almost 43.4% of non-engaged companies struggle with these critical issues. Interestingly, many who are interested in generative AI (65.3%) have not yet utilized it fully, with only 46.3% currently implementing AI within their workflows.

AI Utilization Trends

AI tools like ChatGPT have been adopted by 85.5% of users, while Gemini's adoption has seen remarkable growth, increasing nearly fourfold since last year. Utilizations include information gathering, drafting property listings, and crafting customer service communications. While 11.1% of respondents reported achieving over 10 hours of labor savings per month through AI, a notable portion (31.4%) reported under an hour of savings, highlighting room for growth in AI application.

InformationSources Evolving

Regarding how professionals in real estate are staying informed about DX and generative AI, there is a notable increase in reliance on social media and YouTube for information, indicating a shift from traditional media sources like print newspapers and industry events.

Adoption of Real Estate Tech Systems

As for the tech systems currently in use or being integrated, the most common are rental management systems, application processing systems, viewing booking software, and electronic contract solutions. Satisfaction ratings for these systems are notably high, especially for viewing booking systems, with 80.9% of users expressing satisfaction.

Conclusion

This fifth edition of the DX promotion status survey reveals a maturing understanding of digital transformation among real estate practitioners. While most engaged businesses recognize the advantages of DX, it's essential that barriers such as budget constraints and knowledge gaps are addressed to foster broader adoption across the industry. As the landscape shifts, real estate tech companies and media must continue innovating and supporting all stakeholders in this transition, ensuring that the momentum for DX enhancement is sustained in the real estate community.

Survey Overview

• - Period Conducted: July 4, 2025, to August 19, 2025
• - Total Responses: 1,286
• - Target Audience: Real estate management and brokerage companies
• - Methodology: Internet-based survey

Companies Involved

• - Itandi, Inc.: Offers real-time inter-dealer tools and rental management solutions.
• - WealthPark, Inc.: Provides owner applications and support services.
• - COSOJI, Inc.: Engaged in managing real estate services.
• - Thinca Inc.: Specializes in communication platforms for real estate.
• - Spaceslee Inc.: Develops VR and AI property photography apps.
• - Smasate, Inc.: Focuses on AI-based rental assessments.
• - Sumasapo Inc.: Provides tenant applications and real estate management solutions.
• - Japan National Rental Housing Newspaper: Publishes critical industry news and insights.