As the world's population continues to grow and urbanization increases, the global real estate industry is on a hot streak. The industry is projected to reach a staggering $14.5T by 2030, according to a report by Next Move Strategy Consulting.
Crucial services that underpin the larger real estate space, including development, design & construction, property management, and brokerages, are ramping up — presenting a wealth of opportunities for dealmakers. M&A activity in real estate services has steadily climbed over the last decade, and that growth is expected to continue.
In this PE Playbook, the Grata team has put together the need-to-know trends for investors considering making moves in the real estate services market, including:
- How the market is fragmented
- Where to find dense pockets of opportunity
- Which segments are seeing the most growth
The market map above is not intended to be an exhaustive representation of companies in the space.
Companies that provide services that fall into multiple segments are categorized in this report by their primary offering.
Key Insights into the Real Estate Services Industry
- M&A activity has steadily increased over the last decade, driven by global population growth, shifting market dynamics, a stronger focus on ESG standards, and institutional investors turning their attention towards alternative assets.
- The property management sector is seeing an explosive average growth rate of 67%, nearly 7x the industry average.
- Private brokerages are seeing slower growth than all other sectors due to a combination of high interest rates, growing pressure from competing online platforms and larger firms, and difficulties with recruiting and retaining agents.
- US-focused dealmakers have an abundance of opportunities to explore in multiple regions. The South could prove to be especially lucrative, as it remains the fastest-growing region in the country.
M&A Trends in the Real Estate Services Industry
Transactions
Transactions from financial sponsors and strategic buyers have consistently ticked up over the past 10 years. Contributing to the activity in the real estate services industry are:
- Population growth, especially in urban areas, driving demand for residential and commercial properties
- Shifting market dynamics as millennials enter their prime home-buying years and boomers begin to downsize
- Remote and hybrid work setups changing how companies use commercial offices
- A stronger focus on environmental, social, and governance (ESG) standards driving demand for eco-friendly buildings and more sustainable property services
- Institutional investors focusing more on alternative assets, such as single-family homes and data centers
Most Active Sponsors
Apax Partners is the most active financial sponsor in the real estate services industry with 151 relevant transactions. Several of its acquisitions in the space are online real estate platforms and management portals.
Most Active Strategic Acquirers
Brown & Brown Insurance tops the list of most active strategic acquirers in the real estate services space. The firm’s purchases are primarily focused on home and property insurance brokerages and services.
Real Estate Services Industry Overview
Market Distribution
Geography
Dealmakers interested in the real estate services industry have a plethora of opportunities around the world. The US leads the global market with over 283,000 real estate services companies. Germany follows in second place with just under 75,000. In third place is the UK, which is home to over 61,000 real estate services companies.
Other significant hubs across the globe include Canada, France, Australia, Brazil, and China.
Within the US, opportunities in the real estate services industry span from coast to coast. Here are some of the key markets that dealmakers should consider:
- The Northeast: The real estate services industry is seeing strong growth driven by rising demand in the residential sphere. All 10 of the top 10 fastest-rising housing markets since 2022 are located in the Northeast, according to a report by Visual Capitalist. Within the last year, Scranton, PA and Syracuse, NY, have seen home prices rise faster than the majority of other American cities.
- The South: The South is the fastest-growing region in the US, with approximately 1.8M people added between 2023-2024 — more than all other regions combined. It’s also the only region of the country experiencing positive net domestic migration, meaning more people are moving there than leaving. That’s largely due to the fact that the cost of living remains lower than in other regions of the US. The area is also generally business-friendly, with many state and local governments offering tax incentives for real estate development and corporate relocation. Particular hotspots include Texas, Florida, and North Carolina.
- The Midwest: Affordability and economic diversification are driving significant growth in the Midwest. Median home prices in the region are lower than in the East or West Coast markets, drawing both residents and investors. The Midwest’s economy is also expanding beyond manufacturing into industries including tech, healthcare, and finance, boosting job growth and attracting more residents. This, in turn, is strengthening the industrial real estate sector. Major hubs like Chicago and Cleveland are seeing growing demand for distribution facilities and rising leasing activity.
Ownership
Independent companies account for the largest swath of the real estate services industry. Currently, there are over 246,000 privately owned companies that are ripe for acquisition.
Segment Distribution
This report focuses on the following segments of the real estate services industry. Grata users can see curated lists of some of the companies used to create each segment by clicking the links below.
- Property Management (Dive deeper into the Landscaping & Property Management sector here.)
- Design & Construction (Learn more about the Construction sector here.)
Real Estate Services Public Comparables
Population growth, increasing urbanization, and worldwide economic expansion are driving ongoing demand for new projects across the residential, commercial, and industrial sectors. This is fueling the impressive growth rate in the development sector and the high average revenue rates in the design & construction space.
Real estate design & construction companies are the top earners by far. The sector is massive — valued at $11.4T in 2024. Firms in this sector work on large-scale, capital-intensive projects. A single commercial or infrastructure project can bring in tens or hundreds of millions in revenue.
The property management sector is seeing an explosive average growth rate of 67%, nearly 7x the industry average. Housing costs have made homeownership inaccessible for many, which is driving up the number of long-term renters. Short-term rentals are also booming thanks to platforms like Airbnb and VRBO, necessitating management services to handle bookings and maintenance. Additionally, the commercial and industrial property sectors are expanding, creating the need for more management services. For example, the ongoing growth of e-commerce is driving demand for professional management of large logistics and warehouse facilities.
Real Estate Services Private Comparables
Private design & construction companies are seeing notably higher growth rates than their public counterparts. Because private firms tend to have strong relationships with local construction crews and suppliers, they can adapt more easily to logistical challenges than large public companies can. Private design & construction companies are also capitalizing on projects in niche sectors, such as townhouses and accessory dwelling units (ADUs).
At the opposite end of the spectrum, private brokerages are seeing slower growth than all other sectors analyzed in this report. This is due to a combination of high interest rates, growing pressure from competing online platforms and larger firms, and difficulties with recruiting and retaining agents. Another key challenge for private brokerages is limited supply in the residential and commercial real estate spheres. Fewer listings means fewer transactions for brokerages.
Notable Acquisitions in the Real Estate Services Industry
Sterling Infrastructure Acquires CEC
In September, civil construction services company Sterling Infrastructure acquired CEC. The Texas-based facilities management company was valued at $50M at the time. CEC offers janitorial services, building maintenance, landscaping, and general facility management services.
If you’re an investor interested in companies similar to CEC, try these:
Learn more about this acquisition — or any of the others listed below — anytime, anywhere using the latest version of the Grata Go mobile app. Get all of the ownership and investment data you need right in the palm of your hand.
Astra Property Buys PT Mega Manunggal Property
Real estate development company Astra Property bought Indonesia-based PT Mega Manunggal Property for $202M in October. Mega Manunggal offers development and management services for properties int he commercial and residential sectors.
If you’re an investor interested in companies similar to PT Mega Manuggal Property, try these:
Roebuck Landscaping Purchases the Greathouse Company
Earlier this month, Roebuck Landscaping purchased Nashville-based, full-service landscaping business The Greathouse Company. The Greathouse Company serves the commercial and residential sectors. Financial terms of the deal were not disclosed.
If you’re an investor interested in companies similar to the Greathouse Company, try these:
Landscape Workshop Acquires Luigi’s Landscaping
Landscape Workshop acquired Luigi’s Landscaping for an undisclosed amount in October. Landscape Workshop offers a full range of commercial landscaping services and grounds maintenance for properties in the Southeastern US. Luigi’s Landscaping is based in Florida, where it provides lawn and landscaping services, tree pruning and removal, emergency hurricane clean-up, fertilization programs, irrigation installation, and nursery services.
If you’re an investor interested in companies similar to Luigi's Landscaping, try these:
Apax Partners Buys atHomeGroup
Private equity firm Apax Partners acquired atHomeGroup, a real estate portal and mortgage broker, in October. Financial terms of the deal were not disclosed. AtHomeGroup is based in Luxembourg. Its platform caters to individuals and businesses looking to buy, sell, or rent real estate properties.
If you’re an investor interested in companies similar to atHomeGroup, try these:
Fathom Holdings Purchases START Real Estate
Fathom Holdings, a real estate brokerage firm, acquired START Real Estate earlier in October. START is a Denver-based company that offers services to buyers and sellers in the real estate market. It specializes in helping first-time buyers qualify for down payment assistance grants. Financial terms of the deal were not disclosed.
If you’re an investor interested in companies similar to START Real Estate, try these:
Howard Hanna Real Estate Acquires Elegran
Howard Hanna Real Estate purchased Elegran, a New York-based brokerage, in October for an undisclosed amount. Elegran specializes in luxury properties in New York City.
If you’re an investor interested in companies similar to Elegran, try these:
Live Real Estate Services Deals
Hundreds of live deals and active mandates are being showcased on the Grata Deal Network. Here are some examples of mandates related to the real estate services industry:
- A new real estate marketer based in France with $4.2M revenue and an expected valuation of $3.4M
- An integrated property management and relocation business that sees $7.4M in revenue
- A US-based, multi-family real estate development and construction services firm that sees $4M in revenue
If you’re interested in these deals and you want to see more, register to learn more here.
Are you a sell-side advisor interested in generating inbound leads for your data center infrastructure deal? Get started here.
Real Estate Services Conferences
Grata makes it easy for dealmakers to find conferences, events, and trade shows in their industries. See attendee lists so you can set up meetings beforehand and make the most of your travel time. Check out which companies attended past events to find more potential targets.
Here are a few of the events related to the real estate services industry that dealmakers can find and track in Grata:
Get the Most Out of the Playbook
If you’re an investor interested in making moves in the real estate services space, Grata can help you put the insights in this article into action.
From in-depth market research to sourcing to pipeline management and relationship nurturing, Grata’s end-to-end dealmaking platform streamlines your workflows so that you can close more deals.
Schedule a demo today to get started.
