In early 2025, CoStar Group, a global leader in real estate information, analytics, and online marketplaces, finalized its acquisition of Matterport, a pioneer in 3D spatial data and digital twin technology. Valued at €1.5 billion, this strategic move marks a significant leap in CoStar’s digital innovation efforts and reshapes the landscape of real estate visualization.
By integrating Matterport’s cutting-edge 3D capture and mapping technology, CoStar aims to transform the way people interact with residential, commercial, and industrial properties online — offering richer, immersive experiences that enhance decision-making and reduce friction in transactions.
What is Matterport?
Founded in 2011 in California, Matterport has built a reputation as the leader in 3D property scanning. The company’s platform allows users to create precise, photo-realistic digital twins of physical spaces using both professional-grade cameras and mobile devices.
With over 12 million digitized properties across 177 countries, Matterport has become the global standard for spatial data in real estate, architecture, construction, insurance, and property management.
Key products and technologies include:
- Pro3 LiDAR-based cameras for indoor and outdoor spatial scanning
- AI-powered Cortex platform for automated modeling and analytics
- Cloud-based hosting and collaboration tools
- Integration with CAD/BIM workflows for architecture and design
Strategic Goals Behind the Acquisition
With this acquisition, CoStar plans to implement Matterport’s 3D capture technology across its ecosystem of platforms, including Homes.com, Apartments.com, and LoopNet.
The integration will enable:
- Immersive virtual tours for listings across all asset classes
- Accurate spatial measurements and layout visualization
- Enhanced property data analytics
- Improved lead quality and engagement for agents and brokers
According to CoStar CEO Andy Florance, “Matterport is redefining how real estate is experienced online. With this integration, we are bringing the digital twin into the mainstream real estate workflow — from listing to closing.”
2025 Outlook and Market Implications
1. Surge in Demand for Remote Visualization
In 2025, more than 60% of property buyers and renters begin their search online. Virtual tours have become a default expectation, especially in high-value transactions and cross-border investments. Matterport’s technology will allow CoStar to meet — and exceed — these expectations.
2. Expansion in the European Market
CoStar’s platforms are rapidly growing across Europe, particularly in Germany, France, the Netherlands, and Spain. Matterport’s presence and localized tools will accelerate this expansion, offering rich visual content tailored to diverse markets.
3. Growth in the B2B Segment
CoStar plans to leverage Matterport’s technology in the commercial, retail, logistics, and industrial property sectors. Property owners and asset managers will gain powerful tools for space optimization, portfolio analysis, and remote collaboration.
4. AI and Predictive Analytics Integration
With access to Matterport’s spatial data, CoStar can further enhance its AI-driven valuation models, rent forecasts, and market intelligence tools. This will empower clients with data-rich insights based on not only market comps but also physical property characteristics.
5. Elevated User Experience
From smartphones to tablets, users expect seamless and immersive browsing. The integration will allow real estate platforms to offer lifelike walkthroughs, empowering clients to explore properties from any location — with depth, context, and scale.
Industry Reactions
The acquisition has received overwhelmingly positive feedback from real estate professionals, analysts, and PropTech experts. Many view it as a natural evolution in the digitization of the industry.
It also positions CoStar well ahead of competitors like Zillow, Redfin, and Realtor.com, which have been exploring immersive technologies but lack Matterport’s extensive spatial database and advanced scanning infrastructure.
Financial and Operational Synergies
Matterport ended 2024 with annual revenues of approximately $158 million, but struggled with sustained profitability due to R&D expenses and global expansion. CoStar, with its robust cash flow and infrastructure, is expected to streamline operations and scale Matterport’s offerings more effectively.
The combined company is now positioned to lead not only in real estate listings but also in spatial data analytics, facilities management, and digital construction workflows.
Conclusion
The €1.5 billion acquisition of Matterport by CoStar is more than a business transaction — it’s a transformational investment into the future of how real estate is visualized, analyzed, and transacted.
In 2025 and beyond, the synergy between CoStar’s market intelligence and Matterport’s immersive technology will create a new standard for digital real estate platforms. This will redefine customer expectations, empower real estate professionals with advanced tools, and bring the virtual closer to reality.
For buyers, sellers, and investors alike, the line between the physical and digital world in real estate has never been thinner — and with CoStar’s move, the future is now three-dimensional.
