Insights: Why Dubai’s proptech vision is great news for the real estate sector  

Anyone who follows real estate will know that proptech is big business. The sector’s global market value is projected to surpass $89bn during the period 2024-32, representing an impressive compound annual growth rate (CAGR) of 11.9 per cent. As these figures suggest, cutting-edge innovations are having a hugely positive impact on the international property landscape.

This is especially true in Dubai. The emirate’s property prices are projected to rise by 5-8 per cent this year, and average rental yields are expected to approach the 7 per cent mark.

Innovations connected to artificial intelligence (AI) and blockchain are already unlocking lucrative opportunities for local property investors and entrepreneurs, and related technologies look set to continue to fuel growth over the longer term. Against this backdrop, the UAE’s proptech industry stands to achieve a phenomenal 20 per cent CAGR from 2022-28.

As founder and CEO of PRYPCO, I am a passionate advocate for the transformative capabilities of proptech, and I am fortunate to live in an emirate whose leaders understand its true potential. Here’s why I believe our government’s proptech vision is great news for Dubai’s wider real estate sector.

Embracing innovation with proptech

Early adopters have already witnessed the myriad ways proptech is making the real estate sector more efficient. It has added value to existing practices through its ability to streamline complex processes, optimise property management systems and improve customer experiences.

The recently announced collaboration between the Dubai Integrated Economic Zones Authority (DIEZ) and the Dubai Land Department (DLD) supports the emirate’s ambition to become a leading destination for property innovation, laying the foundations for further innovation and attracting top international talent. Ultimately, this partnership will ensure that budding entrepreneurs, startups and SMEs within the proptech sphere are able to operate in an environment conducive to their long-term growth and development.

Future advances in AI and blockchain will accelerate the pace of change within the industry and generate more diverse investment opportunities. The latest technologies are already facilitating cutting-edge fractional ownership platforms, allowing investors to purchase portions – or ‘blocks’ – of prime rental properties in Dubai for as little as Dhs500. And this is just the tip of the iceberg. From virtual valuations to augmented reality tours, similar innovations have the potential to revolutionise the real estate industry as we know it, changing how we engage with and invest in our built environment.

Enhancing visibility

Dubai’s laser focus on technological innovation within the property sector (think the REES Initiative, the RDI Grant Initiative and the Real Estate Sector Strategy 2033) is enabling talented entrepreneurs and tech experts to conduct research and develop disruptive technologies that will elevate our emirate’s position as a leading proptech hub.

Naturally, rapidly advancing capabilities combined with countless opportunities for investors are attracting significant attention from around the world, making Dubai the perfect launchpad for anyone who wishes to showcase proptech innovations to an international audience.

Dubai has also established itself as a gathering point for the global proptech community. Having spearheaded a diverse selection of real estate conferences and trade shows, policymakers are bringing together experts, industry leaders and investors who are leveraging innovations to reshape the future of real estate. These high-profile events help to cement strategic relationships, secure new investment opportunities and further strengthen Dubai’s status as an international hotspot for proptech innovation.

Supporting entrepreneurship

The emirate’s future-focused approach, resourcefulness and innate entrepreneurial spirit have been instrumental in allowing our economy to flourish. The Dubai Economic Agenda (D33), for instance – which aims to double GDP and grow the foreign direct investment (FDI) pipeline to $177bn between 2023 and 2033 – is testament to our leaders’ vision, ambition and confidence.

With multiple incentives and support initiatives aimed at fostering the development of startups and SMEs, especially within the realms of technology and digital transformation, Dubai-based proptech entrepreneurs are working in a rich and stimulating environment while benefitting from the financial backing required to rewrite the future of real estate.

Forward-thinking policymaking and investment, coupled with private sector innovation, are enhancing flexibility, accessibility and profitability for property owners, buyers and investors across Dubai.

For these reasons, I am certain that our government’s ambitious proptech vision will continue to benefit Dubai’s real estate market for decades – if not generations – to come.