Key facts
- Proptech funding in H1 2026 was $4.53B, nearly unchanged from H1 2025.
- Q2 2026 proptech funding fell to under $1.3B, a sharp decline from Q1's $3.25B.
- The market exhibits a 'barbell' pattern, with large deals and small rounds dominating funding distribution.
- Debt financing constituted the largest portion of investment types at 27.7% in H1.
- Overall proptech funding is down approximately 65% compared to the first halves of 2021 and 2022.
Proptech funding experienced a sharp slowdown in the second quarter of 2026, despite overall first-half investment remaining roughly flat compared to the previous year. According to data from the Center for Real Estate Technology & Innovation (CRETI), total proptech funding for H1 2026 reached $4.53 billion, a marginal 0.6% decrease from H1 2025.
However, this aggregate figure masks a significant disparity between the first and second quarters. While Q1 saw $3.25 billion invested, Q2 funding plummeted to just under $1.3 billion. This Q2 total was less than the amount raised in January alone, which exceeded $1.7 billion. The concentration of investment was evident in January, which hosted six of the year's ten largest deals, including Terralayr's $412.9 million venture and debt round and Mews' $300 million Series D.
The current funding landscape reflects a substantial decline from the peaks of 2021 and 2022, with H1 2026 funding approximately 65% lower than the first halves of those years. The CRETI report highlights a 'barbell' pattern in funding distribution, indicating that capital accumulation occurred in distinct market segments. Of the 231 disclosed funding rounds, 11 deals exceeding $100 million accounted for nearly half (49.6%) of the total funding. Simultaneously, 75 rounds were for less than $5 million, representing a small 2.8% of the total.
This uneven distribution, with significant capital in large rounds and small early-stage deals, creates a market that appears stable in aggregate but is uneven beneath the surface. Debt financing was the most common investment type in H1, making up 27.7% of total funding, followed by venture funding at 18.3% and private equity at 10.4%. The report suggests that a prevalence of large debt financings can inflate funding volumes without necessarily signaling an increased appetite for early-stage venture risk.