Everything you need to know about the Proptech industry in the UAE

The digitalization of the real estate industry, and the implementation of a new generation of technologies within the sector, is leading to sweeping changes, across all its functions, assets, and capabilities. Proptech, once a term that needed to be explained and elaborated on, has become universally acknowledged as the force that is unlocking new possibilities within real estate, redefining how businesses within the industry conduct their operations, and delivering a host of benefits – from extending asset lifecycles, to optimizing sustainability and tenant experiences.

Given the UAE’s longstanding reputation for its enthusiastic adoption of innovation; it should be no surprise that Proptech – a combination of the terms Property and Technology – has found a very receptive audience within the Emirates. In fact, Proptech Middle East – a summit forum that is the region’s leading event for real estate stakeholders to discuss the vision for a technology enabled future – has been hosted in Dubai, for several editions now.

So how exactly would one describe the scope of the changes that Proptech is ushering, in the UAE? In one word – revolutionary!

The dawn of smart real estate

Although Proptech had already made a strong case for itself, particularly in predictive maintenance, enhanced occupant services, and adherence to a new era of green real estate guidelines; the COVID-19 pandemic has resulted in a surge in its uptake and adoption. When the crisis began, suddenly and with little time for the industry to adapt, those businesses which had already gone down the path of digitalization and tech-adoption fared considerably better, than those that hadn’t.

From securing the health of occupants, to access control and contact tracing, and operating with leaner onsite teams, due to social distancing restrictions; the global pandemic was a test case for the implementation of IoT and Cloud enabled operations and maintenance systems. In addition to enhancing everyday operations, to align them better with an unprecedented set of requirements; Proptech solutions also lowered operating costs and optimized returns for building owners and operators – an invaluable competitive advantage during a period when rental returns and other income streams dropped of steeply.

Naturally, the results achieved by real estate businesses that had adopted system wide digitalization, during the pandemic; were a huge real-world validation of the ability of Proptech to make the sector more competitive in the new normal as well. As a result, the UAE real estate industry can now be said to have near total consensus around technology adoption – for brand differentiation, and operating more efficiently.

Multi-faceted transformation

While flagship initiatives such as Smart Dubai⁽¹⁾, and the Zayed Smart City Project in Abu Dhabi⁽²⁾, drive the compelling big picture case; Proptech innovations are even more varied in their application than enabling real-time command and control of building automation. Every aspect of the industry has the potential to be altered by emerging technology – and a lot already has been reshaped completely.

A spike in the use of online platforms, digital agents, and Augmented Reality home tours, are only one aspect in which Proptech has impacted the property buying process; a lot has changed in terms

of meeting administrative requirements, as well. Blockchain technology⁽³⁾ is dramatically transforming the documentation, registration, and record keeping process involved in real estate transactions – making the entire process far more transparent, reliable, seamless, and convenient.

With buildings accounting for around 40% of the world’s energy consumption and GHG emissions, Proptech is also at the forefront of the movement for more sustainable real estate. Usage responsive real estate management, enabled by IoT and AI based solutions, are emerging as some of the most powerful tools enabling a greener and more sustainable UAE. Likewise, the construction industry is being redefined, with innovations ranging from better site management tools, to Dubai becoming home to the world’s largest 3D printed building⁽⁴⁾, and the most exciting thing is that this evolution is just beginning.

We have only just scratched the surface of the possibilities

While Dubai often makes the most eye-catching headlines in Proptech, Abu Dhabi – with its relatively older building stock – might actually present the even bigger opportunity for transformation. With the emergence of digital retrofits that transform an older building into a smart property, without replacing existing assets wholesale, smart cities no longer have to be created from scratch. Nevertheless, whatever trajectory the UAE’s Proptech revolution takes, it will transform the nation, and reinforce its position as a global leader in innovation.