Proptech trends in 2022: Greater efficiencies and broader applications

The UAE has a penchant for technologies — which has helped the nation keep pace with global advancements. The recent shift to a paperless government⁽¹⁾ and the successful hosting of a World Expo amid a pandemic are examples of how digitalization has helped the nation. Over the past year or so, the real estate sector — which was traditionally averse to technologies — has increased its exposure to digitalization too. And the results have been as advertised: High efficiencies, more productivity, less guesswork, superior occupant experiences, etc.

The application of Artificial Intelligence and Big Data has allowed companies to gain deeper insight into the consumer market and deliver highly customized solutions and services. The situation is ideal for all, as end-users get greater convenience while the owners/operators/companies benefit through more streamlined processes and higher returns.

Following are technologies that could revolutionize real estate in 2022.

Blockchain

Blockchain technology has found application in various industries and verticals. It has helped make data more secure, manageable and trustworthy. Even the UAE has called upon cryptocurrency companies⁽²⁾ to set their base in the country. As these companies become more involved in the nation, the real estate sector could witness positive changes. Owner’s associations, escrow accounts in jointly owned properties, and search-and-discovery marketplaces could achieve greater efficiencies through blockchain adoption.

AI-powered Analysis

The real estate sector involves massive financial capital and associated risks. So, the companies greatly rely on research and data analysis, investing a lot of time and money. Artificial Intelligence can help automate these processes. Companies like Clik.ai⁽³⁾, a proptech firm offering automated underwriting and asset management services, are crafting a niche by leveraging AI. In 2022, the UAE property market could witness the entry of such disruptors, much to the benefit of all stakeholders.

3D Tours

As we subscribe to digitalization more and more each day, we could see 3D tours replace physical visits in property buying. As real estate is a capital-intensive asset class, it will obviously necessitate in-person, physical tours before closing the deal. However, 3D tours can enable buyers to wade through a number of properties and narrow down the options to a few good ones that are worth paying a visit. This can save time and effort, and simultaneously allow buyers to see more properties.

Big Data and predictive analysis

Across sectors, Big Data has been successfully leveraged to deliver personalized advertisements and results through search engines and social media platforms. Similarly, Big Data in real estate could open numerous opportunities, revolutionizing functions across the value chain. There was already an ample amount of data available, but lack of analysis had left much to be desired. This is about to change in 2022.

Data Validation

Relying on online data can be risky, as there are no mechanisms to accurately differentiate between correct and incorrect information. Even top marketplaces allow people to put up property information without verifying credentials. Lately, some are adopting innovative data validation models to verify listings. TruCheck by Bayut⁽⁴⁾ is a good case in point. We can expect more initiatives along these lines in the new year.

The UAE has a long-standing reputation for state-of-the-art real estate developments, thanks to Burj Khalifa and the likes. The emergence of proptech complements the existing innovation-driven strategy. In 2022, proptech adoption could be key as the nation gears up to differentiate its offerings and cater to the global investor ecosystem.

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