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. 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. 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.
6. Newmark Group Inc. (NASDAQ:NMRK)
Newmark Group Inc. (NASDAQ:NMRK) is one of the 7 best PropTech stocks to buy according to hedge funds.
On April 1, Newmark Group Inc. announced that the company has arranged a $525 million refinancing of The Artise, a recently delivered Class A+ 25-story trophy office tower in downtown Bellevue, Washington, that is 99 percent leased.
The arrangement reflects Newmark’s expertise in capital markets and its capacity to offer large-scale financing opportunities to institutional investors in the prime office markets. Financing for this deal was arranged through Goldman Sachs and Deutsche Bank on behalf of Schnitzer West and The Baupost Group. The company’s Co-President of Global Debt & Structured Finance, Jonathan Firestone, stated:
“Securing this refinancing for The Artise underscores lender confidence in Bellevue’s premier office market and the long-term durability of this tenancy. Goldman Sachs and Deutsche Bank delivered a competitive structure that supports our clients’ business plan and recognizes the exceptional quality and an investment-grade tenant.”
Senior Director at Schnitzer West, Jordan Suther, expects The Artise to further augment Bellevue’s position as an integral business hub. Shedding light on this refinancing, he emphasized the value proposition of best-in-class office assets, which are well-located and offer higher tenancy rates.
Newmark Group Inc. covers several functions across the commercial real estate segment. Based on a strong emphasis on data analytics and technology, it delivers investment sales and commercial mortgage brokerage services, along with valuation, advisory, property management, due diligence, and other services.
5. ServiceTitan Inc. (NASDAQ:TTAN)
ServiceTitan Inc. (NASDAQ:TTAN) is one of the 7 best PropTech stocks to buy according to hedge funds.
On March 17, ServiceTitan Inc. announced that SPS PoolCare, the largest residential swimming pool services platform in the United States, decided to standardize over thirty locations across five U.S. states on the ServiceTitan platform.
With the help of the ServiceTitan platform, SPS PoolCare would be able to operate in one system and increase its high velocity acquisition strategy and platform expansion by bringing the complete family of companies onto the ServiceTitan platform.
On March 13, Daniel Jester from BMO Capital decreased the price target on ServiceTitan Inc. from $108 to $92. Jester reaffirmed an Outperform rating on the stock. He stated that despite certain headwinds linked with weather, the company was able to perform well in its fourth quarter, exceeding its own projections.
However, the company has come under some investor scrutiny regarding its growth durability, which is something other peers from across the software space have also faced. The management has responded to these concerns by expediting its MAX program, which offers end-to-end automation services to trade customers.
ServiceTitan Inc. operates cloud-based software platforms that integrate various business functions, such as advertising, contracting, invoicing, payment processing, reporting, recruitment, and others. It facilitates these functions through ServiceTitan, FieldRoutes, Aspire, and Convex platforms. The company also engages with heating, ventilation, and air conditioning (HVAC) businesses for plumbing, irrigation, water treatment, painting, pest control, roofing, and other relevant solutions.
4. CoStar Group Inc. (NASDAQ:CSGP)
CoStar Group Inc. (NASDAQ:CSGP) is one of the 7 best PropTech stocks to buy according to hedge funds.
On February 26, BITG reiterated a Buy rating for CoStar Group Inc. after the announcement of its fourth quarter results. The firm reduced the company’s price target from $80 to $60. Since the announcement of its third-quarter results, the sentiment around the stock has remained volatile.
It started with concerns around missing targets for bookings during the quarter. What also worried the investors was the medium-term outlook given by the company in January. BTIG believes that such a backdrop makes it harder for the company to achieve double-digit growth organically. It further noted that meager guidance for margins shared by the management fuels more fear regarding the company’s medium-term prospects.
On February 25, Alexei Gogolev from J.P. Morgan reduced the price target on CoStar Group Inc. from $101 to $82 while maintaining an Overweight rating on the stock. The analyst noted that the company exhibited strong momentum across its core segments, along with better-than-expected results from the acquisition of new assets.
Gogolev, however, lowered his price target based on a more cautious view of the company’s medium-term prospects. He still sees CoStar as a viable option in the growing commercial real estate segment.
CoStar Group Inc. provides commercial real estate analytics and online marketplaces. It operates various platforms such as CoStar Property, CoStar Markets, CoStar Leasing, CoStar Sales, Home.com, and LoopNet. Through these platforms, it delivers services around unique property types including office, industrial, retail, multifamily, hospitality, and student housing.
3. Zillow Group Inc. (NASDAQ:ZG)
Zillow Group Inc. (NASDAQ:ZG) is one of the 7 best PropTech stocks to buy according to hedge funds.
On March 23, Zillow Group Inc. established a long-term deal with Major League Baseball. This made it MLB’s official marketplace provider for its real estate and home rentals. During the season, Zillow will be running national marketing initiatives on national TV, streaming, and digital platforms, which include MLB Network, MLB.TV, and Apple TV+ to promote its brand.
The company will also be sponsoring a number of events, which include Year-round league sponsorship, All-Star Week, and Postseason happenings. In addition to this, it has also announced Pennant Chase’s sponsorship throughout all media operated by MLB.
On March 17, Zillow Group Inc. announced Zillow Preview, a new product that brings pre-market home listings into the open by making them publicly visible on Zillow and Trulia. In his capacity as the Chief Executive Officer, Jeremy Wacksman declared that the company had been operating under the simple premise of believing that real estate works best when information is open and accessible.
Wacksman asserted that nobody should ever feel obligated to work with an agent of a certain brokerage firm to be aware of the full scope of the options that were available to them. He also stated that with Zillow Preview, the spotlight is shone on the options that might otherwise be in the dark.
Zillow Group Inc. is a technology-enabled platform for real estate market, operating through websites and mobile applications. It offers marketplaces for rentals, construction, agents and advertising of properties. Moreover, it also offers SaaS solutions for real estate transaction management. The company ensures a seamless experience for users who benefit from end-to-end real estate transaction solutions.
2. Airbnb Inc. (NASDAQ:ABNB)
Airbnb Inc. (NASDAQ:ABNB) is one of the 7 best PropTech stocks to buy according to hedge funds.
On April 1, Wells Fargo increased its price target on Airbnb Inc. from $133 to $136 while maintaining an Equal Weight rating on the stock. This results in almost 9% upside potential at the prevailing level.
Despite the high level of economic uncertainty, the firm believes that Airbnb will have excellent operating momentum. Wells Fargo argues that macro is the key driver at this point and anticipates guidance that suggests night growth is slowing down modestly in the second quarter.
Back on March 3, Mizuho increased its price target for Airbnb Inc. from $156 to $175. The firm also maintained an Outperform rating on the stock, which currently offers an adjusted upside potential of more than 40%.
The revision came at the back of the company’s fourth quarter report, based on which Mizuho decided to revise its model. The firm, however, feels that investors are underestimating the bullish story around the stock.
Airbnb Inc. runs a global online marketplace to offer lodging, travel, gift cards, and other services. Through its platform, guests are connected with hosts around the globe for bookings and reservations. The company enables such connectivity through a mobile app and a website.
1. Rocket Companies Inc. (NYSE:RKT)
Rocket Companies Inc. (NYSE:RKT) is one of the 7 best PropTech stocks to buy according to hedge funds.
As of April 2 closing, consensus sentiment for Rocket Companies Inc. was moderately bullish. The stock received coverage from 8 analysts, 4 of whom assigned Buy ratings and 4 gave Hold calls. With no Sell rating, it has a projected median 1-year price target of $23, which results in an upside potential of almost 54% at the prevailing level.
On February 27, Rocket Companies Inc. and Compass Inc. (NYSE:COMP) announced a strategic alliance to increase home listing inventories and improve the home buying and selling experience for American households. Compass listings will now be instantly visible on Redfin because of this partnership.
Private Exclusive listings will soon be displayed as well. The Compass listings inventory has the potential to add more than 500,000 listings to Redfin via the global network of real estate experts at Compass International Holdings, including @properties, Better Homes and Gardens Real Estate, CENTURY 21, Christie’s International Real Estate, Coldwell Banker, Compass, Corcoran, ERA, and Sotheby’s International Realty.
With 2 billion views in 2026, Compass listings will be prominently displayed on Redfin.com and the Redfin mobile app, thereby attracting more customers to the marketplace and increasing listings for merchants.
Rocket Companies Inc. operates as a fintech company that delivers various innovative solutions related to real estate, personal finance, and mortgages. Some of its offerings include digital real estate brokerage, home search, appraisals, settlements, subscription cancellation, and credit score improvement.
