Full transparency – I am a passionate advocate of digital twin technology, and I have been for many years. Innovation in this space is transforming the real estate buying experience while facilitating the visualization and optimization of built assets. The result is a win-win for buyers and sellers alike.
For those who aren’t familiar with the technology, digital twins are virtual 3D replicas of properties, systems or processes, which can be continuously updated using real-time data. According to Fortune Business Insights, the global market for digital twins looks set to grow from $24.48 billion in 2025 to $259.32 billion by 2032, representing a staggering compound annual growth rate (CAGR) in excess of 40 percent over the next seven years.
As managing director of operations, finance and hospitality at DAMAC Properties, I set about driving our organization’s adoption of digital twin technology at the beginning of the COVID-19 pandemic. In the years since, these models have significantly enhanced our sales process, allowing our team to showcase master communities in the metaverse.
Consequently, we have seen associated transactions grow from $24 million at launch to more than $400 million in 2024. So, this month, I’ve decided to explain why I believe digital twin technology represents the future of real estate sales.
Read: DAMAC launches branded Chelsea Residences in Dubai Maritime City
Anticipating the needs of end users
Historically, real estate development relied on blueprints and physical prototypes. In recent decades, processes such as building information modelling (BIM) have made the design and planning stages of property development far more efficient and collaborative.
Digital twins represent the natural next step in this evolution. By offering continuously updated virtual environments that accurately depict physical assets and their related systems, these models allow designers and developers to plan and test every last detail of a project before a single brick has been laid.
Before and during the construction phase, digital twins can be used to analyze design elements such as daylight, air quality, thermal comfort, energy use and layout, making it easier to evaluate the future performance of planned assets while ensuring the wellbeing of residents in the process.
Large-scale projects such as the Virtual Singapore platform and London Heathrow Terminal 5 have already demonstrated the value of this innovation.
Forward-thinking developers like DAMAC Properties have been harnessing the advantages of digital twin technology for many years, setting a new gold standard for residential projects in Dubai and beyond. However, I expect that broader market adoption will continue to grow as associated costs fall.
Establishing a property’s eco-credentials
Digital twins can also contribute to more efficient property development processes and the creation of sustainable building stock. They enable engineers to comprehensively model and optimize energy consumption, water usage, and heating, ventilation and air-conditioning (HVAC) systems, unlocking opportunities to reduce waste, lower operational costs and help preserve vital resources.
In addition, the integration of real-time data inputs and diagnostics allows stakeholders to make more environmentally friendly, cost-effective and proactive choices. Digital twins not only deliver benefits during the construction phase, but they also have the potential to enhance operations throughout a built asset’s lifecycle.
Improved sustainability is not just good for our planet. The gains delivered by digital twins can also boost developers’ bottom lines. This is especially true in the UAE, where as many as 70 percent of investors are willing to pay a premium for greener properties.
Delivering benefits for all stakeholders
Digital twins are fast becoming an indispensable sales and marketing tool for real estate developers and their partners.
Firstly, they are helping to cut operational costs associated with physical staging.
Secondly, buyers are 95 percent more likely to call about a property if there’s an option to take a virtual tour, according to data from Matterport.
Homebuyers can now embark on detailed and immersive virtual tours from any location. It doesn’t even matter whether the property in question is off-plan or complete – this technology offers prospective customers the freedom to explore spaces at their own pace, wherever they may be.
At the same time, sales advisors can guide off-plan buyers through customization options, enabling them to experiment with different finishes, fittings, fixtures and layouts in a virtual environment.
Not only does this enable customers to explore a property’s full potential at the outset, but it also reduces the need for costly and inconvenient refits or renovations further down the line.
In my opinion, the implementation of digital twins is playing a critical role in creating a more efficient, sustainable and customer-centric property sector.
By streamlining sales processes and elevating the customer experience, this technology offers buyers the opportunity to craft their dream homes while empowering forward-thinking developers to deliver sustainable world-class communities.
Five years ago, very few real estate professionals fully grasped the revenue-generating potential of digital twins. DAMAC Properties’ track record during this period is a testament to the power of virtual models, and I have no doubt that this technology will continue to facilitate sales for many years to come.
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