Sammanfattning: Property Technology (PropTech), a term similar to FinTech, has emerged as a key focus of industry and academic discussions in recent years. This dissertation examines how PropTech firms and the commercial real estate (CRE) sector generate value through digital technologies and yet often struggle to capture it. The research pursues two interconnected objectives: (1) to define PropTech and develop a typology for understanding PropTech by distinguishing it as a Vertical Technology (VT), and (2) to analyze why the value created by PropTech is often overseen or unmonetized within the CRE industry. Objective 1 addresses the lack of clarity around what PropTech is and how it relates to broader technology development. To that end, the dissertation distinguishes General-Purpose Technologies (GPTs) — such as AI, IoT, and Blockchain — from Vertical Technologies, which are sector-specific adaptations of GPTs tailored to the needs, processes, and constraints of a particular industry. PropTech is defined as “a vertical digital technology that integrates hardware, software, and integrated systems to meet the unique demands of the real estate sector”. This definition clarifies the technological scope of PropTech and provides a foundation for the second objective. Objective 2 examines value capture challenges in CRE. This study employs a mixed-methods approach, conducting semi-structured interviews with stakeholders from PropTech firms, real estate companies, and industry firms in Sweden, as well as a descriptive analysis of a dataset of 2549 PropTech companies globally. Drawing on a combined path dependency and BM framework, the findings show that while PropTech creates operational and experiential value, this value often remains uncaptured due to the industrial mechanisms in CRE. Specifically, value capture is constrained by the sector’s physical legacy, outdated valuation models, and the hidden costs of building absorptive capacity and organizational learning rather than the technology itself. Taken together, the two studies offer complementary perspectives. The first clarifies what PropTech is and how it connects to broader trajectories of technological development. The second reveals why much potential of PropTech remains unrealized in practice. By linking these insights, the thesis shows how conceptual ambiguity and institutional path dependency jointly constrain the digital transformation of the CRE sector.
