In this article, we will take a look at some of the best PropTech companies that are highly favored by Hedge Funds.
On March 4, McKinsey & Company published a comprehensive analysis on how agentic AI can reshape real estate’s operating model. In addition to this, the report also attempts to study the change in the paradigm from standalone AI applications to domain-based workflow redesigns. Investors interested in real estate technologies and operational efficiencies must review the report.
The holistic view is that agentic AI can free up some $430 billion to $550 billion in value every year in real estate, construction, and development by automating multiple-step workflows in the core business system. The four high-value domains identified by McKinsey were maintenance and facilities, leasing and renewals, investing and asset management, and construction and capital expenditures. Renewal rates were up by 3-7 percent in organizations using AI workflows, lead response time was up by more than 90 percent, and organizations saw more than 30 percent in time savings in their maintenance process.
As far as investors were concerned, McKinsey was quite clear in stating that the way to gain a competitive advantage was by building compounding loops in the core domain, not by running standalone pilots. Considering the rapidly changing landscape, it is more important now than ever before to know which real estate operators are building entire domains with agentic AI.
With that background, let’s explore our 7 Best PropTech Stocks to Buy According to Hedge Funds.
Our Methodology
To identify relevant stocks for this article, we conducted a screening of U.S.-listed PropTech companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 15% upside potential according to TipRanks consensus, as of April 2 closing.
Next, we identified the number of hedge funds that held positions in these stocks by the end of the fourth quarter 2025. Finally, we selected 7 stocks with the highest number of hedge funds holding stakes and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
7. KE Holdings Inc. (NYSE:BEKE)
KE Holdings Inc. (NYSE:BEKE) is one of the 7 best PropTech stocks to buy according to hedge funds.
On March 16, KE Holdings Inc. (NYSE:BEKE) announced its fourth quarter results, where it gave an overview on how it planned to transition towards its efficiency-driven growth strategy based on the new service expectations.
Stanley Yongdong Peng, the CEO and Chairman of the Board, indicated that the company planned to focus on client value in 2025 and attain a strategic upgrade to efficient development. The company’s home transaction service was altered based on the utilization of data and the capabilities of artificial intelligence.
Peng also highlighted that during 2026, the company is expected to meet consumer expectations by creating systematic service capabilities and utilizing AI technology. He stated:
“In 2026, we will respond more profoundly to customer needs, building systematic service capabilities that span the residential lifecycle. Meanwhile, we will leverage AI technology to reconstruct our competitive moats, further amplifying the professional value of service providers and platform efficiency, and ultimately elevating the living experience for consumers through higher-quality services.”
KE Holdings Inc. (NYSE:BEKE) provides an integrated online and offline platform for housing transactions, rentals, renovations, and related services across the Chinese market. The business is structured around 5 segments i.e. Existing Home Transaction Services, New Home Transaction Services, Home Renovation & Furnishing, Home Rental Services, and Emerging & Other Services.
