The real estate sector plays a crucial role in the economic diversification of the UAE. Real estate activities contribute more than 5 percent to the UAE’s total GDP. Technology is further powering the real estate sector in the UAE by simplifying property searches, facilitating virtual tours, and expediting transactions, making it more accessible for both buyers and sellers. Additionally, advanced data analytics and digital platforms are enhancing market insights, enabling more informed investment decisions and fostering growth. It has also brought about improved efficiency, transparency, and accessibility within the sector.
One key benefit is that it has simplified the buyer’s journey to a great extent. Buyers can now browse listings, take virtual tours which save a great deal of time, and even make offers online. From the seller’s perspective, automating the sector makes it easier for agents to maintain client relationships, and improves their productivity.
The use of data analytics and artificial intelligence helps them make informed decisions, optimise property searches and create engaging experiences based on customer behaviour. Finally, the use of technology brings about transparency in the industry. It permits the aggregation of data from all sources into a common assimilated platform, making this visible and useful to all.
Instant Sale feature
Online verification systems can validate identity proofs, offer ease of documentation management, and reducing the risk of failing transactions. An example is the recent launch of the Instant Sale feature by the Dubai Land Department (DLD), which uses smart evaluation technology in real estate transactions. Similarly, we are observing new modes of automated technology being used in real estate valuations, bringing speed and more instantaneous risk measurement and management to the bank lending sectors.
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Embracing proptech revolution
Investment in real estate technology has been substantial. However, the real estate sector has been relatively slow to embrace the proptech revolution, with strides made only in the past ten years and exacerbated by the pandemic. According to projections, the PropTech market is poised to experience substantial growth with of 9.3 percent CAGR from 2023 to 2033. Anticipated figures indicate that the market will expand from its 2023 value of over USD19 billion to reach USD47 billion by 2033. The UAE has long been a hub for innovation and is known for its futuristic vision, making it an ideal environment for tech-driven advancements in the real estate industry.
One area where technology investments are revolutionising the real estate sector is through the use of smart infrastructure and IoT (Internet of Things) solutions. Integrating smart sensors and automation can enhance building management, energy efficiency, and security. This offers a more convenient and comfortable living environment and reduces operational costs and environmental impact.
Streamlined transactions
Furthermore, blockchain technology has the potential to enhance property transactions by rendering them more secure and streamlined. Smart contracts, in particular, can automate the entire buying and selling process, thereby diminishing the requirement for intermediaries and the accompanying paperwork. Additionally, artificial intelligence and data analytics assume a crucial role in the optimisation of property management and the formulation of investment strategies. Predictive analytics can help investors identify lucrative opportunities, while AI-driven chatbots can improve customer service and engagement. Investments in technology can elevate the UAE’s real estate market, attracting more international investors and ensuring sustainable growth while aligning with the country’s vision of becoming a global tech and innovation leader
Sustainability surge
There is increased awareness around sustainability in construction/real estate, with green building practices and energy-efficient designs gaining prominence. The forthcoming global gathering in the UAE, COP28, where world leaders and governments unite to assess the advancements and achievements in addressing environmental challenges will intensify the focus on sustainability in real estate. We will likely see increased efforts towards the adoption of green building practices, renewable energy integration, and climate-resilient designs. It is estimated that 140,000 people will be arriving in the UAE for COP28, to discuss the Paris Agreement and assess progress towards it. During this time, Heriot-Watt University Dubai will set aside two floors of its campus in Dubai Knowledge Park as a Climate Hub to host visitors from around the world and engage in various insightful discussions to address topics of global concern.
Aligning with COP28
Real estate professionals will need to align with COP28 goals to meet evolving environmental and regulatory demands now facing the industry. They can also incorporate renewable energy solutions into their projects, transitioning toward cleaner energy sources. Digital data management and analytics provide insights to enhance resource management, while blockchain technology ensures transparent and verifiable sustainability credentials. Moreover, digital collaboration platforms support remote work, reducing the need for physical office spaces and commuting. To achieve COP28 objectives, it is essential for real estate professionals to stay updated through ongoing education and training, ensuring that they remain at the forefront of sustainable practices and technological innovations in the industry.
Dr. Michael Waters, associate professor in Real Estate at Heriot-Watt University Dubai.
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