The 2026 Proptech in Canada report is out. It looks at what's driving innovation and change in the built world, the status of proptech and key trends to watch in the coming year. The report is produced by Proptech Collective and tracks the progress of close to 600 companies in the sector.
Here are the highlights of the 2026 report.
A Reset in Funding and Capitalization
Proptech Collective says that C$450 million (down from approximately C$800 million in 2024) was raised by Canadian proptech companies during 2025, reflecting a tighter capital market, with the number of start-ups down from previous years. The challenges facing the industry now are not in innovation, but instead execution at scale—while managing risk and credibility and timing—is the primary hurdle.
The report notes that companies are scaling with discipline by prioritizing efficiency and revenue milestones over continuous fundraising. Additionally, more firms are forming partnerships with established companies in the real estate industry to marry emerging technologies with real operational environments and narrow the gap between experimentation and scalable adoption.
See, for example, the partnership between Mattamy Homes and Promise Robotics—one that is now scaling automated homebuilding in Canada. Promise Robotics provides ready-to-deploy industrial robotic systems powered by could-based AI software that manages the full homebuilding production lifecycle. The collaboration integrates advanced automation into Mattamy's Alberta Division operations, boosting productivity, lowering costs and supporting long-term growth. By using Promise's platform, Mattamy can use robotics and AI to produce wall, floor and roof panels for single-family, semi-detached and multi-family homes.
AI Shifts from Promise to Application
Proptech Collective says one of the most significant trends this year is in AI's shift from experimentation to implementation. Companies are leaning on AI to address personnel challenges, deploying it to provide engineering solutions, customer support, research, document review, reporting and other operational tasks. Construction workflows are being reconfigured by AI in architecture and design, cost and estimation, bid management and proposals, and project planning. And at the building stage, prefab and modular construction platforms are using generative design to optimize modular components, coordinate production scheduling and logistics, and apply robotics-enabled automation. AI is also improving workflows in selecting alternative and advanced materials, for project and financial management platforms and productivity field tools.
The use of AI carries risks, of course, in some sectors more than others. Affordable housing is one area in particular that warrants special care when considering the implementation of AI, which is gaining prominence as "hard infrastructure". This is because public funds are involved, margins are thinner, timelines can be politically-driven and transparency expectations are often higher.
Affordable Housing Programs
The report spotlights programs and other supports to tackle the housing crisis in Canada. As Bennett Jones has previously reported on how technology is critical to addressing housing affordability in Trends and AI Potential in Proptech, Top Five Things to Know About Proptech in Canada, New Funding for Proptech in Canada's 2024 Budget, advancements in technology and productivity in housing construction help to relieve the intense pressures on the housing market—from labour shortages and cost increases to declines in productivity. Governments are supporting modernization in home construction through initiatives like the Centre for Housing Innovation (CHI) and Build Canada Homes (BCH), committing over C$13 billion to the sector.
CHI was launched in 2025 as a partnership between DMZ, Groundbreak Ventures, CivicAction Leadership Foundation and Next Generation Manufacturing Canada. It is funded by the Government of Canada (through the Federal Economic Development Agency for Southern Ontario) and its purpose is to fast-track the development and commercialization of housing technology. As at the report date, it has supported 14 proptech companies and its third cohort is planned for summer 2026.
BCH is a new federal agency launched in September 2025 to catalyze homebuilding across Canada by partnering with governments, private builders, communities and industry. It aims to transform public-private collaboration using modern construction methods, flexible financial incentives, public lands and larger portfolio projects to speed up building and improve affordability. Funding includes C$1.5 billion for the Canada Rental Protection Fund to help preserve affordable rental stock. It is expected that projects backed by strong proptech and construction tech will be central to BCH strategy.
Proptech Collective’s full report Proptech in Canada: 2025 in Review & 2026 Trends is available here.
About the Bennett Jones Proptech Group
Bennett Jones Proptech practice operates at the convergence of real estate, finance, technology and construction. To discuss the opportunities and legal considerations in the Canadian proptech sector, please contact the author.
