Cybersecurity in PropTech: Protecting Real Estate Data in the Digital Age

PropTech is no longer just modernizing real estate—it’s rebuilding it around data. With AI automating leasing, IoT wiring up entire buildings, and cloud platforms running operations, the industry is accelerating toward $41.5 billion by the end of 2025. But as the digital surface expands, so does the attack surface—making cybersecurity a business-critical concern.

This newsletter edition breaks down the biggest digital threats in real estate tech—from legacy software to exposed IoT devices. We’ll also cover the best practices for securing modern your PropTech systems. Let’s jump in.

Key Statistics and Trends

• The proptech market size exceeded USD 27.3 billion in 2023 and is estimated to register a CAGR of over 15% between 2024 & 2032

• Cyberattacks on IoT networks lead to an average of 6.5 hours of downtime per incident.

• Every 24 hours, home network devices see an average of 10 attacks.

• Worldwide cybercrime costs are estimated to hit $10.5 trillion annually by 2025.

• The cybersecurity sector is witnessing significant growth, with the global workforce estimated at 4.7 million professionals.

• More than 99% of technologists acknowledge that production applications contain at least four vulnerabilities.

The Threat Landscape in Real Estate Tech

The digital backbone of modern real estate is growing fast, and so are its vulnerabilities. PropTech platforms now juggle legacy systems, cloud-based tools, mobile apps, and a jungle of connected devices. Each upgrade brings convenience, but it also creates vulnerabilities that cybercriminals are eager to exploit.

Old Infrastructure, New Weak Points

Many real estate companies still operate on legacy software initially designed for isolated environments. As AI, cloud platforms, and mobile tools get layered in, these systems often become patchwork solutions with weak links.

Connected Devices: Smart but Exposed

Smart cameras, thermostats, lighting, and access control systems are now standard in commercial and residential buildings. However, each IoT device is a potential entry point into the network, especially when security takes a back seat to convenience.

Cloud-Based PMS: Centralized Convenience, Centralized Risk

Cloud property management systems handle tenant data, leases, maintenance logs, and payment details. They're efficient — but also high-value targets.

Mobile Apps: High Access, Low Security

Tenant and staff apps are often rushed to market without proper security audits. Weak authentication and unencrypted data transfer are common flaws.

Third-Party Integrations: The Backdoor No One Watches

PropTech ecosystems depend on third-party vendors, from visitor logs to digital signage. However, if one partner cuts corners on security, everyone is exposed.

AI: Smart Tech, New Risks

AI powers everything from maintenance forecasts to tenant screening. However, it’s only as secure and fair as the data and models that underpin it. Poor oversight can lead to data leakage, algorithmic bias, or even manipulated outcomes.

What’s at Stake?

When cybersecurity in PropTech fails, the damage goes far beyond IT, it hits operations, legal exposure, and brand reputation. Let’s go deeper.

• Data Theft: Property platforms hold sensitive data — IDs, leases, payments. One breach can expose thousands of tenants and fuel identity theft or fraud.
• Operational Disruptions: Cyberattacks on smart locks, HVAC systems, and elevators can render building systems inoperable, potentially causing significant disruptions. Even brief downtime in high-occupancy properties can cause severe fallout.
• Regulatory and Legal Risk: Laws such as GDPR and CCPA carry significant fines. A single misstep can lead to lawsuits and long-term compliance issues.
• Reputation and Tenant Trust: Tenants expect convenience and privacy. A breach damages credibility, weakens retention, and affects long-term leasing prospects.

Best Practices for Securing PropTech Systems

Securing digital real estate platforms requires more than just firewalls—it needs a proactive, layered strategy that encompasses every device, user, and integration. Here’s what to do:

1. Encrypt Data Everywhere: Use end-to-end encryption for all tenant data, leases, and payments — both in transit and at rest.
2. Design for Security: Build in strong authentication, access controls, and audit trails from the start. Scalable security begins at the architecture level.
3. Patch and Test Continuously: Regularly run vulnerability scans, penetration tests, and patch cycles to stay ahead of known threats.
4. Implement Zero Trust: Verify every user, device, and vendor. Segment networks and enforce least-privilege access, especially for IoT systems.
5. Train Your Team: Educate staff on phishing, password hygiene, and secure access. A well-trained team reduces the risk of human error.
6. Prepare for Incidents: Have a clear response plan with defined roles, effective communication, and well-established recovery protocols to contain breaches and meet regulatory timelines.

At ORIL, we don’t treat cybersecurity as a feature — it’s built into every custom solution from day one. From secure authentication layers to smart integration oversight, we ensure real estate platforms are ready not just to scale, but to defend.

For a deeper dive, check out our guides: How to Make Your Web App Secure and The Significance of Identity Verification. They break down the core security principles we apply across our PropTech projects.

The Role of Custom Software in Cybersecurity

Pre-built PropTech platforms are designed for broad use — not tailored risk. They come with rigid security frameworks, limited customization, and risky third-party dependencies. A single weak link can expose your entire system.

Custom software changes that. It allows real estate firms to:

• Build security into their specific workflows and compliance needs
• Control third-party integrations more tightly
• Scale without sacrificing oversight

You’re not retrofitting protection — you’re engineering it from day one.

Case in Point: Property Security Management Platform

We applied this approach in a conceptual design for a property security management platform. The goal: reimagine how security teams manage surveillance, access, and incidents. The result featured unified camera feeds, GPS-tagged alerts, role-based access, and automated reporting — all wrapped in an intuitive, security-first interface.

When security is part of the blueprint, not an add-on, the difference is clear.

Conclusion 

Cybersecurity now defines the strength of a PropTech platform. As real estate systems grow more connected and data-rich, forward-looking companies are embedding security into every layer, from architecture and integrations to user access and compliance. This isn’t just a technical priority; it’s a strategic advantage. 

At ORIL, we design secure, scalable custom PropTech solutions that protect operations, earn tenant trust, and support long-term growth.