Key proptech trends to watch for in 2022
The pandemic has increased the pace of technology adoption across the world, revealing new, efficient ways to solve problems. At the height of the public health crisis, every step in the property buying process posed a risk, as it has always had a touch-and-feel aspect to it, starting from the first property tour to financing and finally signing the dotted line.
The Middle East, especially the UAE, has lately been a hotbed for innovations across all facets of life and business, with many new technologies emerging out of the Emirates. Because of its unparalleled real estate standards, it’s only expected that the UAE is home to a burgeoning proptech market. A portmanteau of property and technology, proptech refers to the management, handling, and monetisation of real estate assets using, say, AI, automation, and the like. Here are some of the top proptech trends to look out for in 2022.
Correct and accurate data plays a major role in ensuring safe and secure transactions. Since the real estate sector involves big money, any inaccurate information can have serious ramifications. In 2019, Bayut introduced TruCheck, a comprehensive authentication solution to verify the listings. The screening process seeks to eliminate challenges faced by transacting parties when dealing with a property online.
With the property sector becoming more digitized, we expect to see more market players adopting similar measures to ensure data integrity. In addition, customer centricity will be a key driver behind proptech adoption. The government recently launched Dubai Re-Tech(1), an initiative that will leverage AI and allow stakeholders in the sector to utilise big data to adapt as per large-scale market changes, enforce strategic planning, and boost overall investor confidence.
Blockchain technology adoption
The UAE government is consistently focused on ‘smart’ transformation across its various sectors, and real estate is no different. With blockchain technology, Dubai intends to make full use of smart contracts. This will simplify and speed up asset exchange, making transactions possible from anywhere in the world. According to a study(2) on how Blockchain is reshaping the real estate industry, it will result in seamless contract management, automate every aspect of a lease or sale agreement, and speed up the payments process.
Increasing investments in proptech startups
Unsurprisingly, the UAE is considered to be a hub(3) for proptech startups and funding. The government’s rapid focus on digitalisation is expected to support proptech growth in the country. Additionally, the nation intends to set up 1,000 digital companies over the span of the next five years and train over 100,000 coders from across the world.
This is expected to fuel proptech innovation within the country in 2022 and beyond. Other MENA countries are also witnessing an increase in ‘proptech-friendly initiatives’, with private developers and investors keen on developing cutting-edge tech products to have a customer-centric focus and differentiate offerings from their competitors.
Other real estate trends that may give birth to newer proptech in the UAE include:
- A rise in demand for hybrid and flexible workspaces, allowing businesses to maximize productivity in any given space.
- Predictive maintenance and operations systems that will help decision-makers foretell the behaviour of their equipment, thereby saving on maintenance costs.
- The development of customer-centric, service-oriented real estate models that offer superior and personalized experiences to occupants.