Dubai's real estate market has been on a strong upward trend, and this year is expected to be no different.
With the high demand for SMART solutions in one of the most promising markets of the world, proptech companies are gaining ground and are set to drive growth in the UAE real estate market. A report by Zoom Property Insights has revealed that the UAE is home to over 200 proptech start-ups, with more than 55% of them located in the Mena region. This has been made possible due to the strong start-up ecosystem, government support, and high demand for innovative solutions in the real estate sector.
According to the report, proptech start-ups in the UAE have raised more than $100 million in funding during the past five years. Even during the pandemic, $16 million was invested in proptech companies in the emirate, enabling it to grab a prominent spot in the list of most attractive countries for proptech investment.
It is expected that the number of proptech companies in the UAE will continue to grow at a rapid pace as more companies are setting foot in the region, leveraging the ever-growing real estate market of Dubai. According to Future Market Insights, the global proptech market is expected to increase at a compound annual growth rate of 17% from $18.2 billion in 2022 to $86.5 billion by 2032.
"Dubai’s real estate market is set to grow by 46% in some areas this year, further increasing demand for this innovative sector here in the UAE," said Amira Sajwani, founder and CEO of PRYPTO and managing director of Damac Properties.
Successful smart cities such as Dubai will thrive when they meet the needs of their residents. Proptech can fulfil these requirements by allowing for remote viewings which fit around busy working lives and by making information available as and when a client is in a position to access it," she said
Despite the bright outlook for proptech companies in the UAE, there are some challenges they may face. Increased competition in the market and the costs involved pose the biggest challenges. Navigating through the legal landscape as the real estate industry is highly regulated may prove to be a roadblock as well. However, with the right strategy and execution, proptech companies can achieve significant success in the region.
"Despite these challenges, there’s a lot of scope for proptech companies to succeed in the region. The residents of the UAE are tech-savvy and always looking for innovative solutions to make their lives easier" Ata Shobeiry, CEO of Zoom Property said.
Proptech companies that can offer smart solutions, which simplify buying, selling, and renting of properties, are likely to remain high in demand, paving the way for the future of Dubai's Real Estate.
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