Dubai: Proptech on the Rise in the UAE
By, Jamie Moulton – Jamie is a senior content curator at JustProperty.com, a leading real estate portal in the MENA region, headquartered in Dubai, UAE
Technology has invaded all fields of business from healthcare, finance, and aviation. Now the real estate sector is picking up and taking advantage of the new developments in digital technology.
This has lead to the rise of what is known as “prop-tech” or property technology. According to a recent study by HSBC, homebuyers in UAE have been resorting to technology to search for relevant information regarding their real estate purchases.
As mentioned in the study, 72% of UAE property buyers search for available properties online, 67%check the value of their current home, 65% look for information on taxes and regulations, 65 percent research where to live, and 64 percent explore prospective home prices.
This study showed that the technology has shaped home buyers behaviors when buying, renting and owning their own homes.
As a result, real estate websites have turned to the use of technology such as virtual tours, the blockchain, and chatbots that don't only make the purchasing process much more efficient than before but also deliver more insightful information to the investment community faster, allowing investors to make better decisions.
That's not all, as the new prop-tech is delivering services to potential homebuyers similar to those traditional services offered by real estate agents and even more, all of which makes digital technology in real estate the newest trend in real estate industry.
It is worth noting that PropTech trend has been pushed by UAE smart government and Smart Dubai initiatives that have exerted substantial efforts to support this new technological trend such as Dubai Land Department (DLD) and its Real Estate Regulatory Agency (Rera).
These government entities help in driving PropTech trend by developing tools such as Investment Map portal that gives investors and businesses practical information on ongoing real estate investment projects; the Trust Account System app, which manages the registration of developers and their projects; and Ejari, a lease application and management app designed to provide flexibility and transparency to the process.
The private sector has also participated in this trend by creating more smart property listings, mortgage comparison, marketing platforms with links to online brokers and agents, and online real estate data analytics sites to help homebuyers make a more informed decision.
And to highlight even further on the importance of such new trend, the emirate of Dubai is hosting PropTech Middle East 2018 taking place at Sofitel Dubai The Palm Resort & Spa on 29th and 30th October 2018.
This event is expected to become the Middle East's leading event for property & real estate professionals to share their knowledge and visions for the future and discuss the emerging technologies that are shaping the industry today.
Here is a glimpse of the new digital-led innovations that are expected to disrupt the real estate sector's conversations.
With virtual reality technology, potential homebuyers can actually be in two places at once. Through the incorporation of high-quality computerized photos, homebuyers will get to see their off-plan properties for real, stand in the middle of the living room and walk the halls.
VR technology will enable homebuyers to feel real dimensions of their future home and all without applying any filters to the projected photos.
Blockchain technology when applied will bring immediacy to the real estate market. This digital ledger will make it possible in a blink of an eye to sell and buy a property using blockchain. It also helps in expediting the mortgage request as well as reviewing a complete pack of documents on a property's ledger in one go.
Drone Land Surveying
The use of drones in real estate will revolutionize the industry. These aerial vehicles have the ability to do an efficient land survey and measure lands that are hard to reach. These droned will be able to measure an entire land area that matches the real size which will make it easy to have detailed 3D maps and models.
Smart home technology is one reason that increases the sales of specific properties over others. Homebuyers now want to live in a home where they feel comfortable and are able to control everything around the house from the comfort of their own seat.
Smart Homes are safe, secured and efficient houses that always sell faster. According to recent numbers, over than 40% of potential home buyers show interest in smart homes.
Thanks to chatbots – a computer program which conducts a conversation via auditory or textual methods – real estate agents will generate more leads in a matter of minutes and potential home buyers/sellers will get a high-quality service that isn't only prompt but also extremely intelligent.
3D-printing is expected to be the future of real estate construction. And even though this technology hasn't been yet applied in the Middle East but when it does, it will turn the real estate industry upside down. 3D-printed buildings offer end users a great deal of customization, creativity, and freedom when it comes to the design and structure of the buildings. It's a new technology that real estate market will benefit greatly from applying.
Jamie Moulton is a senior content curator at JustProperty.com, a leading real estate portal in the MENA region, headquartered in Dubai, UAE