Impact of technology on real estate transactions and property management in Dubai

Dubai’s skyline, adorned with stunning architecture and monumental buildings, has been substantially redefined by real estate technology, also known as PropTech. Digital innovations in PropTech solutions powered by Artificial Intelligence (AI), Big Data, Augmented Reality (AR), Virtual Reality (VR), and the Internet of Things (IoT), have brought about a new era of sustainable practices by transforming Dubai’s traditional real estate management and transaction practices. Let’s find out how:

Virtual technologies revolutionising home buyer’s journey

Dubai’s tech-savvy real estate players are implementing AR and VR technologies to provide prospective home buyers with an immersive experience while exploring properties remotely. These virtual technologies not only streamline the home buying process but also save time and money by facilitating 360º virtual property tours. Consequently, they boost customer experience as buyers and investors get a better understanding of the property’s features and layout.

Such remote collaboration tools have become an indispensable aspect of safe and smooth property transactions in Dubai. While some AR/VR-enabled PropTech solutions facilitate virtual viewing by generating 3D models of various properties, others enable users to create floor plans, and architectural designs, and even decorate living spaces virtually, from the comfort of their homes. Additionally, AR/VR-powered tools provide agents with a competitive edge.

The Dubai government has also been actively promoting VR initiatives in the region’s real estate sector to attract global investors through immersive experiences that transcend geographical barriers. One significant development in this regard is the launch of the VR Real Estate Platform by the Dubai Land Department (DLD). This platform enables real estate agents to eliminate geographical limitations and create immersive VR tours of their property listings for potential investors across the globe, besides offering them a lifelike preview of their future investments. The impact has been remarkable — over 1,000 real estate agents have utilised the platform to collectively generate over $1 billion in property sales. Additionally, to safeguard the interest of investors and buyers, the government has also established a regulatory framework to ensure the ethical and secure application of AR/VR technologies within the real estate market. The enthusiastic acceptance of VR in Dubai positions it at the forefront of a transformative shift.

Artificial Intelligence: A game-changer

AI— the new deal in Dubai’s property market — is also replacing traditional property valuation methods. AI-enabled data analysis tools are being used to ensure pricing accuracy and a reduction in valuation disputes. Similarly, AI-powered search platforms are personalising buyers’ journeys by instantly analysing user behaviour and recommending properties based on their unique requirements. Furthermore, AI-enabled chatbots are streamlining communication by providing clients with real-time support.

Dubai’s real estate market will soon witness the launch of a revolutionary AI-based app that will simplify property transactions and make it as easy as trading stocks. Not only will it streamline buying, tracking, and selling of properties, but will also offer valuable insights to help developers make smarter decisions about project types and pricing strategies.

Blockchain and cryptocurrency facilitating transparent transactions

Blockchain technology is known for enhancing transparency, security, and efficiency in property transactions through its decentralised ledger system. Dubai is the first city in the world to implement blockchain-powered real estate transactions. In 2017, the Dubai Land Department (DLD) set a global precedent by launching a blockchain system for registering all real estate dealings, including lease registrations.

The writer is Chairman & MD, India and CMD Middle East Project Leaders, Colliers.