Building vs. Buying Software: How Should PropTech Startups Develop Their Product?

The Stakes for PropTech Startups

• Build too much too early? You risk burning through capital and delaying time to market.
• Buy too much? You may compromise on UX, flexibility, and future differentiation.

Choosing the wrong approach could cost you investor trust — and real market traction.

Option 1: Buying or Licensing Existing Tools

This includes:

• White-label PropTech platforms
• No-code/low-code platforms
• Off-the-shelf CRMs or property management tools
• SaaS platforms with PropTech APIs

Pros

• Speed to market — launch in weeks, not months
• Lower up-front cost
• Maintenance handled by vendor
• Built-in compliance (e.g., GDPR, access control)

Cons

• Limited customization
• Hard to differentiate UX
• Scalability constraints
• Data ownership concerns
• Vendor lock-in risk

Buying is a great option if:

• You’re validating MVP functionality
• You need fast internal tools
• You’re focused on speed over full control
  

Option 2: Building from Scratch

This means hiring developers or working with a software team (in-house or outsourced) to create a custom PropTech platform tailored to your business model.

Pros

• Full control over features, data, and design
• Scalable architecture from day one
• Brand-specific UX for competitive edge
• Easier to attract future funding with IP and codebase ownership

Cons

• Higher initial cost
• Longer time to launch
• Requires technical leadership or strong partners
• Ongoing responsibility for security, updates, maintenance

Building is ideal if:

• You’re creating a core platform as your product
• You plan to scale or integrate with smart devices, IoT, or third-party systems
• You’re solving unique user workflows not covered by templates
  

A Hybrid Path: Start Lean, Build Strategically

Most successful PropTech startups don’t fully buy or build. Instead, they:

• Buy tools for non-core operations (e.g., HR, billing, analytics)
• Build custom platforms where differentiation matters (e.g., tenant experience, leasing flows, maintenance UX)
• Use no-code or low-code for internal admin tools to move faster early on
• Hire flexible development partners that can adapt from MVP to scale
  

Real Example

Startup Type: Co-living PropTech in Germany
Phase 1: Used Airtable + off-the-shelf CRM + white-label tenant portal
Phase 2: Worked with Intelvision to rebuild core UX and data flows in a scalable Python/React stack
Result:

• Went from MVP to 2,000+ managed units in 14 months
• Reduced operational support costs by 34%
• Delivered native mobile experience and built internal dashboards
  

Key Questions to Ask Before You Decide

• What’s your core value proposition — and can it be achieved with off-the-shelf tools?
• How much do you need to differentiate from competitors?
• Can you hire/partner with trusted developers to build smart, not bloated?
• What’s the real cost of delay if you wait to build?

Final Thoughts

In PropTech, tech is your product. Your decision to build or buy should align with what makes your company truly valuable. Start lean, stay flexible, and focus your custom development where it matters most.