In recent years, the global real estate sector has witnessed a technological shift, making it clear that property technology – PropTech – and artificial intelligence are not only here to stay, but are set to grow. According to Grand View Research, the AI market is expected to grow globally at 38 per cent by 2030, reaching $1.7 trillion from $93.5 billion in 2021. A portion of this figure is projected to be derived from the UAE as the country strives to be the world leader in AI by 2031.
In line with the government’s directives, Abu Dhabi has placed itself at the forefront of the PropTech revolution, demonstrating notable expansion in AI and other cloud-based solutions. The capital understands the full scope of utilising PropTech innovations and the many long-term benefits it brings to the country and its various real estate players.
Last year, the Department of Municipalities and Transport launched two platforms in partnership with the property developer Advanced Real Estate Services. Quanta is focused on making real estate data accessible to all. This data includes reports and dashboards that are easy to use, and information on transactions, real estate supply, financing solutions and overall market performance.
Dari, the other platform, provides cybersecurity and guards consumers against scams, fake agents and bogus online property listings. It also acts as a one-stop shop for investors, allowing them to handle all real estate operations, from sales and leases of properties to creating real estate dashboards and reviewing licensed agents on one platform.
Following in the government’s footsteps, the private sector in Abu Dhabi has also recognised the big shift that PropTech has created, and the competitive advantage it can give a company. As such, several businesses in the emirate are supporting startups in the PropTech field and are investing heavily in these emerging companies. For example, Aldar has launched various accelerator programmes in collaboration with Hub71 and other partners, such as “Scale-Up” to hunt for the most promising PropTech startups in real estate.
In recent years, several PropTech startups have penetrated the market with innovative solutions. This was further reinforced by the Covid-19 pandemic, which accelerated the urgency of such technological deployments. Huspy, for example, was founded in 2020 to help facilitate the process of finding verified properties for potential customers, arranging viewings as well as looking up the most suitable financing and mortgage options and get them approved in one place.
Whether it is augmented or virtual reality, GIS mapping, 3D printing, AI-powered big data analysis, blockchain or digital twinning, PropTech applications can be of tremendous value to all real estate players – be it investors, agents, landlords and even the government.
Augmented and virtual reality can help customers view properties from the comfort of their homes. In addition, they can conduct secure transactions, enjoy seamless operations with less paperwork while navigating and securing the different financing options available to them. This can instantly improve customer satisfaction and help landlords who offer such streamlined operations to attract and retain tenants. The agents’ experience can also be enhanced by the digitised process of purchasing or renting a property – from the moment it is listed and viewed online until the time a transaction is safely made, which helps them focus on closing more deals faster.
Using technology on a property also contributes to energy savings while maximising performance. AI and cloud-based applications can control and adjust energy consumption based on changing needs. These solutions can also detect equipment failures before they occur, allowing landlords or tenants to take proactive measures. Further, while construction, operation and other costs are being conserved by utilising technology, companies can also achieve higher sustainability credentials in line with their social responsibility towards the planet as well as meeting government requirements.
The Internet of Things, blockchain and big data can provide users with crucial information based on data-driven property analytics and valuation modules that can help make informed decisions around current challenges, future needs and more. As governments make exclusive data, such as transactions, supply, property prices and indices, available and accessible to the public, they are increasing their transparency. This has a direct link towards increasing the country’s credibility and improving the overall business sentiment. The result is a suitable economic and business environment that allows investors to assess and make informed decisions on their prospective investment opportunities in the country.
While the PropTech revolution is considered to be somewhat slower than the technology disruptions in other markets, this is the time for it to shine. Governments and the private sector are becoming more aware of its integral role in developing the built environment and improving the interaction between real estate parties. As a result, they are boosting investment to support its growth.
Through Hub71, Abu Dhabi is pushing further into attracting top international technology companies to set up their PropTech businesses in the capital. It is also working on enhancing the business environment by increasing transparency through its various PropTech launches. Abu Dhabi is at a phase where the real estate market is flourishing in terms of supply and demand, so it is perhaps the best opportunity for the city to capitalise on introducing new PropTech innovations for more optimised operations and enhanced user experience.
