The UK PropTech market is booming, with a projected compound annual growth rate (CAGR) of 17.1% through to 2032. As more property tech companies embrace digital transformation, introducing everything from smart building systems to cloud-based tenant platforms, efficiency is increasing – but so are the risks.
These connected systems create new entry points for cybercriminals. From data breaches to ransomware, cyber threats in PropTech are evolving just as quickly as the technology itself. For organisations handling sensitive tenant data, financial transactions, and building access controls, even a small vulnerability can have serious consequences.
The recent Marks & Spencer breach is a stark example of what can go wrong when cyber security doesn’t keep pace with innovation. With events like PropTech Connect spotlighting these challenges – and our very own CTO James McMillian preparing to speak on the subject – it’s clear that cyber security is becoming a boardroom priority for property tech companies.
Why PropTech Is a Prime Target for Cyber Threats
PropTech is reshaping the property industry, but its reliance on interconnected digital systems makes it uniquely vulnerable to cyber threats. Many property tech companies operate across a patchwork of IoT devices, legacy infrastructure, cloud platforms, and third-party applications – all of which expand the attack surface.
These technologies often collect and process sensitive data, from tenant records and financial transactions to building access controls and environmental monitoring. Without robust cyber security in place, this data is at risk of being exposed, manipulated, or stolen.
Several key factors make PropTech an appealing target for cybercriminals:
- Rapid digital adoption without security maturity – Startups and growing firms often prioritise innovation over cyber security hygiene.
- Legacy systems with weak defences – Older building management systems may lack modern security protocols.
- Third-party risk – APIs and vendor integrations can create blind spots if not properly managed.
In a sector driven by automation, remote access, and always-on connectivity, PropTech’s convenience can quickly become a liability when security is overlooked.
The Real-World Risks: Lessons from the M&S Breach
Marks & Spencer (M&S) may not be a PropTech firm, but its recent breach highlights a growing risk for any digitally connected business. In this case, the breach didn’t occur within M&S itself but through a third-party supplier: an indirect route that still caused significant disruption to operations, impacted logistics, and wiped hundreds of millions from the company’s market value. As one article noted, “The vulnerability of a third-party supplier provided an unintended entry point that ultimately impeded operations… further underscoring the shared responsibility of ensuring security across modern digital ecosystems.”
While M&S isn’t a PropTech firm, the breach underscores a critical point: even well-established businesses with digital infrastructure can fall victim to cyber threats if security is not continually assessed and updated. For PropTech, where platforms manage access controls, financial data, and tenant communications, the potential fallout could be even more severe.
Some of the key risks exposed by the incident, and mirrored across PropTech, include:
- Weak authentication practices making it easier for attackers to gain unauthorised access
- Insufficient vendor oversight leaving third-party systems as hidden vulnerabilities
- Inadequate incident response slowing down containment and recovery
As more property businesses digitise, the M&S breach stands as a cautionary tale: technology alone isn’t enough. A clear and proactive cyber security strategy is essential to protect both operations and reputation.
Common Cyber Security Gaps in PropTech
As the PropTech sector expands, many businesses are embracing digital tools faster than they’re implementing effective cyber security measures. While innovation is front of mind, risk management doesn’t always receive the same attention, which leaves property tech companies potentially vulnerable to a range of cyber threats.
Some common weak spots that may arise include:
- Inconsistent security policies, particularly in organisations managing multiple properties or systems across different teams
- Legacy infrastructure being used alongside modern platforms, creating potential gaps in visibility or patching
- Low cyber security awareness among operational staff who interact with building systems, access controls, or tenant data platforms
While each business is different, these scenarios are becoming increasingly common across digital-first industries. As cybercriminals evolve their tactics, it’s vital that PropTech firms take a proactive stance: one that considers security as part of every stage of digital transformation.
With events like PropTech Connect shining a spotlight on these issues, the sector has an opportunity to strengthen its collective resilience.
Best Practices for Strengthening Cyber Security in PropTech
Protecting your operations against evolving cyber threats requires more than just reactive measures; it demands a proactive, layered approach to cyber security.
Here are several best practices that can help build a more resilient PropTech environment:
Assess your digital footprint regularly
Conduct audits to identify what systems, devices, and data flows are in use, including those managed by third parties. Visibility is the first step in reducing risk.
Secure connected devices and building systems
IoT sensors, smart locks, HVAC systems, and lighting controls should be segmented from core networks and protected with strong authentication protocols.
Review third-party access and integrations
Ensure that vendors follow secure development and data handling practices. Regularly vet any APIs or platforms connected to your systems.
Implement regular patching and software updates
One-third of ransomware attacks start with an unpatched vulnerability. Establish a structured update cycle across all hardware and software.
Promote staff awareness
Educate teams on phishing tactics, social engineering, and secure data handling, particularly those involved in tenant communications or system management.
Align with recognised frameworks
Cyber Essentials or ISO standards can help set a strong foundation for ongoing cyber resilience and compliance.
By weaving these strategies into daily operations, PropTech firms can better protect data, reduce downtime, and foster trust with tenants and partners alike.
Redinet: Securing the Future of PropTech
The future of PropTech is bright, but only if it’s secure. As more property tech companies embrace digital transformation, the need to prioritise cyber security grows ever more urgent. From managing IoT devices to safeguarding tenant data, businesses must be ready to face a new wave of cyber threats, many of which exploit overlooked or underprotected systems.
The M&S breach has shown how damaging a third-party vulnerability can be, and with events like PropTech Connect highlighting these challenges, it’s clear that the industry must act now to protect its digital infrastructure.
Whether you’re a startup scaling quickly or a well-established firm evolving your tech stack, the right security measures can make all the difference. Get in touch today to ask us any questions you might have about PropTech.
