The construction sector in the UAE has witnessed a continuous surge in recent years, driven by several factors, including substantial government investments, economic diversification, and a growing population, all of which positively influence the country’s real estate landscape. As reported by market intelligence and advisory firm ‘Mordor Intelligence,’ the construction market size is projected to experience a compound annual growth rate of 4.26 percent this year, reaching AED193.38 billion ($52.7 billion) by 2030. This growth will further bolster the real estate sector, as numerous developments are currently in the pipeline, set to be delivered by that time.
The expansion of the construction sector is also propelled by various additional factors, with infrastructure development—particularly in transportation and renewable energy—demanding innovative technologies to ensure the highest quality products for customers. Dubai’s proptech market, which aims to double its sector value by 2030, plays a pivotal role in this growth, introducing cutting-edge technology that enhances both technical and design aspects within the sector.
Proptech: A necessity for investors
Georges Calas, CEO of Lifesize Plans Dubai, remarked: “Witnessing the constant growth of the UAE’s real estate sector and strong influx of investors coming in from all around the world, it was an easy decision for us to enter the market in 2023. As the sector continues to flourish, it becomes increasingly crucial to focus on the attention to detail for every square meter that it is being constructed not just from a design perspective, but to also help identify any potential problem before work even starts on the project.”
Moreover, Calas highlighted that, “As the overall supply of both residential and commercial developments continues to increase, the proptech sector in parallel also becomes more of a necessity as opposed to a luxury when it comes to investors looking to buy their dream home and will soon become an essential tool for developers to incorporate in the years to come.”
As the UAE maintains its status as a global hub for both investors and tourists, the construction and real estate sectors emerge as two of its primary industries vital for sustaining ongoing prosperity. The growth of complementary sectors like proptech will play an increasingly important role in delivering optimal infrastructure, design, and quality, becoming a central focus for developers as the real estate market continues to expand and evolve.
