AI powers maturing Canadian proptech amid slower funding

The PropTech Collective's latest survey of the Canadian property technology sector identifies more than 590 active companies. The findings point towards a market that is raising capital less frequently, focusing more rigorously on product development, and integrating artificial intelligence into daily operations.

According to the PropTech in Canada 2025 report, the number of active firms in the region rose from 535 the previous year to over 590. Despite a more challenging fundraising environment, the report estimates that Canadian PropTech organisations secured approximately USD $450 million in investment throughout 2025.

The report described a shift away from the rapid financing cycle seen earlier in the decade. It linked the change to a smaller number of funding rounds and to a period of more disciplined operating models among founders.

"At the peak of the market in 2021 and 2022, we were seeing close to 50 proptech funding rounds a year," said Stephanie Wood, Vice President, Alate Partners and Report Lead, Proptech Collective. "Over the last three years, that's come down to around 30 - and while fundraising has been tougher, it's also been a forcing function that's made the ecosystem stronger. People are still finding real problems in real estate, construction, and housing - and building solutions for them".

Macro backdrop

The report situated PropTech activity within a broader framework of pressures currently facing Canada's built environment, notably housing supply and affordability. It highlighted that the real estate and construction sectors combined represent more than 20% of Canada's GDP.

Furthermore, the report identified Canada's prominent standing in artificial intelligence as a primary driver for technology adoption across property and construction. This trend is bolstered by significant national investment and an intensified focus on digital innovation and industrial modernisation.

"What we have in Canada is extraordinary. The challenge is getting others to see it, including ourselves. There's a real opportunity to invest in companies transforming the built world - from housing to infrastructure and to be proud of backing that innovation locally." said John Ruffolo, Managing Partner, Maverix Private Equity.

Housing programmes

The report highlighted increased policy attention on construction productivity and housing delivery. It pointed to the launch of Build Canada Homes, which it said carries AUD $13 billion in federal funding and focuses on housing supply and modern construction approaches.

"Canada's proptech ecosystem is well positioned to scale - fueled by billions in sovereign AI investments, industry partnerships, and modern construction methods reshaping "How We Build"," said Fred Cassano, Partner & National Real Estate Leader, PwC Canada. "I'm particularly excited to see more companies collaborate with industry to commercialize technology, align with policy, and invest in housing and infrastructure at a national scale".

From pilots

Proptech Collective said industry engagement has moved beyond limited trials. It cited a rise in innovation programmes, accelerators and partnerships that place products inside operational settings across construction and real estate.

The report framed adoption as a more important measure than fundraising. It said companies increasingly prove value through repeatable deployments, often linked to partnerships with established operators.

Case studies

The report featured six Canadian case studies, ranging from embedded consumer finance within property searches to the application of AI in construction estimation.

One notable example highlighted the collaboration between REALTOR.ca and Pinch Financial. According to the report, this partnership integrates mortgage qualification directly into the property search journey, streamlining the process for prospective buyers.

"Partnerships that put technology into active use are what transform ideas into lasting impact for consumers and professionals," said Scott Neil, CEO, REALTOR.ca. "The most effective proptech partnerships meet consumers where decisions are being made. Integrating mortgage qualification into the home search experience helps remove friction and gives buyers clarity at the exact moment it's needed."

Another case study covered rental housing and consumer rewards. The report said Fitzrovia partnered with Chexy and linked rent payments to rewards.

"At Fitzrovia, we've always believed renting shouldn't mean compromising on lifestyle," said Adrian Rocca, CEO, Fitzrovia. "We're excited to take that idea even further and turn an everyday payment into an elevated experience. For Aeroplan Members to earn Aeroplan points when renting with us brings our residents one step closer to the travel, rewards, and lifestyle they aspire to."

The report also pointed to building performance and emissions planning. It cited work between Adaptis and Forum on building performance strategy and decarbonisation planning.

Automation push

On construction methods, the report described momentum around automation and industrialised construction. It cited a partnership between Mattamy and Promise Robotics and said the work explores consistency, speed and productivity in homebuilding.

"At Promise Robotics, we've been laying the foundation for a new era in homebuilding - one powered by automation and an industrial backbone built for scale," said Ramtin Attar, CEO & Co-Founder, Promise Robotics. "Supporting Mattamy's homebuilding operations is a major milestone on the path to broader industry transformation, signaling how tech-enabled construction can reshape housing at a national level."

AI in use

Proptech Collective said AI moved from experimentation into regular workflows across property and construction in 2025. It said AI now appears in how firms market and sell, how lean teams operate, and how software products structure core tasks.

The report said search behaviour has shifted as more people use large language model tools for research and evaluation. It also said digital channels face saturation from low-quality AI-generated content. It linked that shift to greater emphasis on brand trust, case studies and partnerships.

The report characterised artificial intelligence as a "team member" within organisations that have maintained their current headcount. It noted that firms are deploying AI tools across technical workflows, customer support, document processing, reporting, and repetitive operational tasks to enhance efficiency.

Furthermore, the report highlighted the rise of embedded AI within products. This integration is fundamentally altering workflows across leasing, operations, development, asset management, and construction execution.

Pomerleau appeared as an example of AI use at scale. The report said the construction firm is deploying AI through an internal platform called Almanac. It said that the system draws on historical bid and project data. It said the process produces faster and more accurate estimates and shifts staff time towards higher-value work.

"Teams are operating leaner and smarter, and as an investor, we're seeing so much more product maturity and early traction in first pitches than we were two or three years ago," said Wood. "A big driver of that is AI - and it's been incredible to see how quickly the conversation has evolved. Last year it felt like AI was discussed at a high level; this year it feels like it's everywhere, embedded across workflows and becoming a real part of how the built world operates."

The PropTech Collective stated that the next phase for the sector will be contingent upon further adoption within major real estate and construction organisations, alongside continued partnerships that integrate products directly into operational environments.