Impact of technology on real estate transactions and property management in Dubai
Dubai’s skyline, adorned with stunning architecture and monumental buildings, has been substantially redefined by real estate technology, also known as PropTech. Digital innovations in PropTech solutions powered by Artificial Intelligence (AI), Big Data, Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT), have brought about a new era of sustainable practices by transforming Dubai’s traditional real estate management and transaction practices. Let’s find out how:
Virtual technologies revolutionising home buyer’s journey
Dubai’s tech-savvy real estate players are implementing AR and VR technologies to provide prospective home buyers with an immersive experience while exploring properties remotely. These virtual technologies not only streamline the home buying process but also save time and money by facilitating 360º virtual property tours. Consequently, they boost customer experience as buyers and investors get a better understanding of the property’s features and layout.
Such remote collaboration tools have become an indispensable aspect of safe and smooth property transactions in Dubai. While some AR/VR-enabled PropTech solutions facilitate virtual viewing by generating 3D models of various properties, others enable users to create floor plans, and architectural designs, and even decorate living spaces virtually, from the comfort of their homes. Additionally, AR/VR-powered tools provide agents with a competitive edge.
The Dubai government has also been actively promoting VR initiatives in the region’s real estate sector to attract global investors through immersive experiences that transcend geographical barriers. One significant development in this regard is the launch of the VR Real Estate Platform by the Dubai Land Department (DLD).
This platform enables real estate agents to eliminate geographical limitations and create immersive VR tours of their property listings for potential investors across the globe, besides offering them a lifelike preview of their future investments. The impact has been remarkable — over 1,000 real estate agents have utilised the platform to collectively generate over $1 billion in property sales. Additionally, to safeguard the interest of investors and buyers, the government has also established a regulatory framework to ensure the ethical and secure application of AR/VR technologies within the real estate market. The enthusiastic acceptance of VR in Dubai positions it at the forefront of a transformative shift.
Artificial Intelligence: A game-change
AI— the new deal in Dubai’s property market — is also replacing traditional property valuation methods. AI-enabled data analysis tools are being used to ensure pricing accuracy and a reduction in valuation disputes. Similarly, AI-powered search platforms are personalising buyers’ journeys by instantly analysing user behaviour and recommending properties based on their unique requirements. Furthermore, AI-enabled chatbots are streamlining communication by providing clients with real-time support.
Dubai’s real estate market will soon witness the launch of a revolutionary AI-based app that will simplify property transactions and make it as easy as trading stocks. Not only will it streamline buying, tracking, and selling of properties, but will also offer valuable insights to help developers make smarter decisions about project types and pricing strategies.
Blockchain and cryptocurrency facilitating transparent transactions
Sankey Prasad, Chairman & MD, India and CMD Middle East Project Leaders, Colliers.
Blockchain technology is known for enhancing transparency, security, and efficiency in property transactions through its decentralised ledger system. Dubai is the first city in the world to implement blockchain-powered real estate transactions. In 2017, the Dubai Land Department (DLD) set a global precedent by launching a blockchain system for registering all real estate dealings, including lease registrations.
It is also worth mentioning that the real estate boom in Dubai is driven not just by traditional investors but also by young cryptocurrency traders. With its supportive regulations and robust infrastructure, the city has attracted crypto enthusiasts seeking a lucrative place to invest and settle. Consequently, many crypto investors are flocking to Dubai, drawn by its welcoming environment and the opportunity to safeguard their wealth through real estate investments.
Managing smart homes with IoT
Smart buildings powered by the Internet of Things (IoT) technology is also redefining property management in Dubai. Recently, a Dubai-based realty developer entered into a partnership with Chinese technology company Xiaomi to incorporate smart building solutions into its upcoming housing estates. IoT-enabled sensors and integrated surveillance systems help property managers streamline building management by offering real-time insights into temperature, humidity, air quality, and energy consumption. Smart homes also help residents save energy costs. Additionally, smart locks, smart smoke detectors, and smart water leak sensors provide them with peace of mind even when they are away from home.
Green tech for property management
Real estate developers in Dubai are also leveraging technology to manage green buildings efficiently. The city aims to reduce carbon emissions by 50% by 2030 and attain net-zero carbon emissions by 2050. Therefore, it is adopting green technologies to achieve these goals. In 2011, the Dubai Municipality mandated eco-friendly construction standards for all government buildings. Private developers were also encouraged to explore sustainability practices through this initiative. In 2016, the municipality took another significant stride by making green building standards compulsory for all new constructions across the Emirate. This progressive strategy is in line with Dubai’s Smart City vision. Consequently, property managers are adopting recycling, waste reduction, and composting to reduce the waste generated by the buildings.
Final thoughts
The growing implementation of PropTech is facilitating a sustainable and transparent future for Dubai’s realty sector. Furthermore, Dubai is becoming a PropTech destination with several PropTech startups establishing their base in the region. Consequently, its real estate sector will witness further technological advancements, besides setting new industry standards in the years to come. What’s more, such advances will not only drive innovation but also bring investors from across the world, thus enabling the City of Gold to materialise its ambitious goal of doubling the population to 5.8 million people by 2040.
The writer is Chairman & MD, India and CMD Middle East Project Leaders, Colliers.
