CoStar Group acquires Matterport for digitalizing real estate

In a landmark move set to reshape the landscape of online property visualization and intelligence, CoStar Group has announced its definitive agreement to acquire Matterport.CoStar Group is a premier provider of online real estate marketplaces, information and analytics Matterport is one of the leading companies in immersive 3D digital twins and artificial intelligence for the real estate industry.

The transaction marks a significant step for both companies. With Matterport's highly advanced technology and CoStar Group's extensive reach, the acquisition is expected to drive innovation and enhance the development and deployment of advanced artificial intelligence (AI) and digital twin technology across all of CoStar Group’s product lines.

Founded in 2011, Matterport pioneered the development of the first 3D capture solution to deliver dimensionally accurate, photorealistic virtual tours or 'digital twins' for any type of property. Matterport’s proprietary and patented technology enables anyone to digitize a property using a variety of camera technologies including cameras found on most smartphones. Matterport also produces a line of innovative 3D capture devices, including the company’s flagship Lidar-based Pro3 camera which is capable of high-precision indoor and outdoor capture. At the centre of the solution is Cortex, a powerful artificial intelligence software engine that automatically generates the 3D digital twin and virtual tour while providing property insights like detailed property dimensions, room layouts and more.

3d digital twins for properties

Matterport's 3D technology is utilized in nearly every sector of real estate, spanning residential, commercial, hospitality, retail, and industrial spaces, among others. Over the years, Matterport has curated what is considered the largest and most precise collection of spatial property data worldwide, with over 12 million spaces captured in 177 countries, and representing more than 38 billion square feet (approx. 3.5 billion square metres) of digital property under management. Contributing to this growth, Matterport has established a global network of several thousand photographers, capture services technicians, and service partners producing hundreds of thousands of new 3D digital twins for properties each month.

CoStar Group operates top real estate platforms like Apartments.com, LoopNet, CoStar, and Homes.com, all featuring Matterport’s 3D virtual tours. As an early adopter of Matterport’s technology, CoStar Group now offers nearly 300,000 Matterport digital twins. In March 2024, Apartments.com had over 7.4 million Matterport 3D Tour views, with listings featuring Matterports receiving 20% more attention. CoStar Group plans to expand the use of Matterports on Homes.com, enhancing its residential portal.

Digitizing the world’s real estate

"CoStar Group and Matterport have nearly identical mission statements of digitizing the world’s real estate. I look forward to welcoming Matterport to the CoStar Group family and believe that we will be stronger together, in pursuit of our common mission," said Andy Florance, founder and CEO of CoStar Group. "The world has changed and today a Matterport is the new open house or property tour. People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property. There is no better way to remotely experience space than via Matterport. CoStar Group intends to support and invest in research and development opportunities to further develop Matterport’s spatial technology, including the application of AI and machine learning to extract information from the 3D spatial data library as well as using generative artificial intelligence to imagine and reimagine physical spaces."

RJ Pittman, chair and CEO of Matterport said: "We are thrilled to join forces with CoStar Group, a long-standing customer and partner with a shared vision for transforming global real estate through technology and digitization. This transaction is another significant milestone that acknowledges the groundbreaking work Matterport has accomplished in 3D digital twin technology and AI-driven property intelligence. With CoStar Group's expansive reach and scale in property research and analytics and our joint commitment to innovation, we believe that this powerful combination will transform how properties are marketed, sold, and managed worldwide. Importantly, it offers Matterport's stockholders the opportunity to participate in the value creation and future growth prospects of our combined efforts."