Code-driven real estate: Israel's next proptech revolution

Real estate has always been a technological field - just not a digital one. From the pyramids to skyscrapers, the built world has relied on engineering innovation: cranes, concrete, elevators, and steel frames. Each generation added a layer. The next revolution is already here - and it's coming from Israel.

This is not just another software that manages contracts or sends alerts. It's a shift from reporting systems to acting systems. From monitoring to operating systems. Not just digitization, but orchestration - AI-based software agents that actually manage assets.

PropTech has grown from a niche space into a major investment category. Global investments rose from nearly $1 billion in 2010 to $32 billion in 2021. In Israel too, there has been significant growth in the number of companies and investor attention, with over 200 active PropTech companies today. Yet, the vast majority of global real estate is still managed manually, in a costly and technologically fragmented way.

The first generation of proptech focused on digitization - systems for contract management, billing, and maintenance. More prominent Israeli startups joined in the second wave. This generation is known to us thanks to companies like Guesty, which developed a platform for managing short-term rental properties, and Jones, which offers automation for real estate compliance processes. Buildots took it a step further, using computer vision to provide real‑time oversight of construction sites. Visitt was among the first proptech companies to integrate AI into maintenance of buildings. StructShare offers a digital solution for procurement management in the construction sector, while companies like Waltz, Agora, and Atlas Invest serve different real estate investor profiles at various stages of their lifecycle. Lately, we’re also seeing more and more companies integrating AI into the core of their offering - for example, Real.Dev, which uses AI to manage all real estate data, or Spacial, which effectively replaces structural and MEP engineers in the U.S.

One of the standout examples of global interest in Israeli PropTech is the acquisition of Skyline AI - a platform for predicting the value of commercial real estate - by real estate giant JLL. The acquisition, which took place back in 2021, was a milestone: it was the first time a traditional real estate company acquired an Israeli startup to embed AI capabilities as the foundation of its investment and operational model.

Now, we are entering the AI-Native era. The next phase is happening right now: no longer software that documents, but software that acts. Imagine teams of AI agents: One underwrites deals with live permitting data, one that manages tenant communication, one that monitors building systems, and another that reads contracts and automatically integrates them into the organizational flow.

This isn’t science fiction. Boomnow, for example, is developing an operating interface for hospitality that's entirely based on teams of AI agents. Okibo is developing a smart robotic arm that performs finishing work on construction sites. These platforms don’t just report - they operate, respond, and improve operations at a level that until recently required dozens of employees.

We mapped the Israeli PropTech scene using a simple framework: the five main ways to create value in real estate - buying, building, managing, financing, and experiencing.

The map represents leading companies and the current state of the market, and is not meant to be an exhaustive list (200+ active companies).

The future is not a collection of point solutions. It belongs to comprehensive platforms, like the one being developed by MRI under Property Management X, or that of VTS, which positions itself as a centralized hub for managing all proptech platforms. This trend is also evident in Israel, with a clear shift toward orchestration solutions that communicate with one another and share data in real time.

Even traditional companies recognize the shift. While in the past it was rare for a real estate firm to invest in a software startup, today it's the norm. CBRE invested $100 million in VTS. Real estate giant JLL established JLL Spark and acquired Hank, Building Engines, and Skyline AI. In Israel, we're starting to see more collaborations between major firms and startups in areas like predictive maintenance, real-time monitoring, and tenant and construction experience.

So why Israel? Because of its rare combination of strong tech infrastructure, system-level thinking, and a global mindset. Israeli founders are often veterans of elite tech units, AI experts, or cyber specialists who understand complex systems and aim from day one for large markets like the U.S.

The future of real estate will be managed by code. The Israeli startups that will succeed in the coming decade won’t be the ones building another software layer on top of old systems, but those rethinking the entire operational model. The market is huge, the need is clear, and now is Israel’s time to lead this revolution. Israel is beginning to take a significant place in the global PropTech landscape. We’ve already seen some local successes - but this is only the beginning. A new generation of Israeli startups is now penetrating every layer of the tech stack - from elevating the tenant experience and enabling predictive maintenance, to construction site monitoring and delivering AI-driven infrastructure insights. Israel’s deep roots in advanced tech, infrastructure, and cybersecurity are a clear advantage - especially as PropTech moves from point solutions to infrastructure-based, integrated platforms.

The direction is clear: from passive buildings to self-managing ones. From collections of software tools to a single operating system. From reporting to action.

Ophir Shay is an Associate at TLV Partners.

short-term rental properties, and Jones, which offers automation for real estate compliance processes. Buildots took it a step further, using computer vision to provide real‑time oversight of construction sites. Visitt was among the first proptech companies to integrate AI into maintenance of buildings. StructShare offers a digital solution for procurement management in the construction sector, while companies like Waltz, Agora, and Atlas Invest serve different real estate investor profiles at various stages of their lifecycle. Lately, we’re also seeing more and more companies integrating AI into the core of their offering - for example, Real.Dev, which uses AI to manage all real estate data, or Spacial, which effectively replaces structural and MEP engineers in the U.S.

One of the standout examples of global interest in Israeli PropTech is the acquisition of Skyline AI - a platform for predicting the value of commercial real estate - by real estate giant JLL. The acquisition, which took place back in 2021, was a milestone: it was the first time a traditional real estate company acquired an Israeli startup to embed AI capabilities as the foundation of its investment and operational model.

Now, we are entering the AI-Native era. The next phase is happening right now: no longer software that documents, but software that acts. Imagine teams of AI agents: One underwrites deals with live permitting data, one that manages tenant communication, one that monitors building systems, and another that reads contracts and automatically integrates them into the organizational flow.

This isn’t science fiction. Boomnow, for example, is developing an operating interface for hospitality that's entirely based on teams of AI agents. Okibo is developing a smart robotic arm that performs finishing work on construction sites. These platforms don’t just report - they operate, respond, and improve operations at a level that until recently required dozens of employees.

We mapped the Israeli PropTech scene using a simple framework: the five main ways to create value in real estate - buying, building, managing, financing, and experiencing.

The map represents leading companies and the current state of the market, and is not meant to be an exhaustive list (200+ active companies).

The future is not a collection of point solutions. It belongs to comprehensive platforms, like the one being developed by MRI under Property Management X, or that of VTS, which positions itself as a centralized hub for managing all proptech platforms. This trend is also evident in Israel, with a clear shift toward orchestration solutions that communicate with one another and share data in real time.

Even traditional companies recognize the shift. While in the past it was rare for a real estate firm to invest in a software startup, today it's the norm. CBRE invested $100 million in VTS. Real estate giant JLL established JLL Spark and acquired Hank, Building Engines, and Skyline AI. In Israel, we're starting to see more collaborations between major firms and startups in areas like predictive maintenance, real-time monitoring, and tenant and construction experience.

So why Israel? Because of its rare combination of strong tech infrastructure, system-level thinking, and a global mindset. Israeli founders are often veterans of elite tech units, AI experts, or cyber specialists who understand complex systems and aim from day one for large markets like the U.S.

The future of real estate will be managed by code. The Israeli startups that will succeed in the coming decade won’t be the ones building another software layer on top of old systems, but those rethinking the entire operational model. The market is huge, the need is clear, and now is Israel’s time to lead this revolution. Israel is beginning to take a significant place in the global PropTech landscape. We’ve already seen some local successes - but this is only the beginning. A new generation of Israeli startups is now penetrating every layer of the tech stack - from elevating the tenant experience and enabling predictive maintenance, to construction site monitoring and delivering AI-driven infrastructure insights. Israel’s deep roots in advanced tech, infrastructure, and cybersecurity are a clear advantage - especially as PropTech moves from point solutions to infrastructure-based, integrated platforms.

The direction is clear: from passive buildings to self-managing ones. From collections of software tools to a single operating system. From reporting to action.

Ophir Shay is an Associate at TLV Partners.