How is PropTech Impacting the Real Estate Industry in Dubai?
More and more Property-Technology startups are finding Dubai a great Launching pad for their ideas
At Alma Consulting Group (ACG), we get involved in the PropTech sector (Property Technology) on multiple occasions. We noticed the use of information technology (IT) in helping individuals and companies buy, sell, and manage real estate to be the main factor and mission of the startups in this sector.
It’s a known fact that Dubai is moving towards a goal of becoming a smart city; and in many ways, it already has with initiatives such as Smart Dubai and apps that can manage your finances with just a tap of a button on a screen, metaverse projects, green energy and there is no doubt the Dubai is well on its way to achieving all its goals.
The UAE Real-estate is a vibrant market, but the sector has a combination of short-term cyclical forces and longer-term structural changes that influences it. Trends such as Expo 2020 are constantly on the market's radar, so it's critical to look beyond the short-term trends and assess how they fit into the long-term structural plans that affect financiers, builders, and tenants. In contrast to current short-term strategies, the customer experience and hassle-free services play a significant role over the long term.
The UAE Real Estate Market
Despite the strong US currency and interest rates that are at 15-year highs, the UAE's economic outlook overall, despite growing global economic challenges, is still rather positive. It is unlikely that the UAE's economic activities would be untouched by changes in the global macroeconomic environment. however, the scale of the impact is expected to be lessened by its fiscal standing, the year-long relaxation of business and residency regulations, and its role as a safe haven.
Despite global headwinds, the real estate sector in the UAE has continued to experience rapid growth.
ProTech in the UAE
The real estate sector is expanding and advancing since there is always something new to learn about. The UAE real estate market is now more open to everyone thanks to real estate technologies. Apps, search engines, and property websites can all be used to find the ideal property to facility management etc.
In UAE there are 58+ companies in the PropTech market, virtual reality, online property listings, automated payments systems and more to digitize property-related transactions with startups like Huspy, Property finder, dubbizle etc.
Here are 3 benefits of real estate technology, end users(customers/clients).
· The information is all accessible at the click of a button.
· Cuts the necessity of personally visiting real estate offices
· A wider range of properties to select from
It is important to find areas that PropTech can enhance and make more efficient. There needs to be more awareness of how to integrate property technology solutions into the very fabric of real estate. It is only after we fully understand its benefits, limitations, and uses that we can unlock its full potential to develop the real estate sector.
The Alma Consulting Group research acknowledges that PropTech, with all of its benefits in the UAE's real estate industry, could lead to a new era of the sector.
If you are considering setting up a PropTech company in Dubai? see what we offer for market research, a feasibility study, and business planning here