The Middle East and North Africa are rapidly catching up with this disruptive technology
Have you ever heard of proptech? It will change the way you choose your next home. – KT file
The global proptech industry is expected to reach $86.5 billion by 2032, growing at a compound annual growth rate (CAGR) of 16.8%, according to a report by Future Market Insights. The figure stood at $18.2 billion in 2022.
The total number of startups and more established proptech companies currently equates to over 10,000 vendors. Globally, the United States holds the largest share of proptech companies, with 59.7% of the global total, followed by Europe (27.2%) and Asia (3.5%). ).
The real estate industry in the Middle East and North Africa (MENA) is also rapidly changing to reach customers digitally. This is due to a broader technological transformation in the industries of the region. Another transformative factor is the strong demand for local properties from foreign investors. For example, last year Dubai became one of the top destinations for high net worth individuals from around the world as the local real estate market saw a price increase of 20-40%.
Many real estate technologies have the potential to transform the local real estate market. Among them are virtual reality (VR) and 360-degree cameras, which allow buyers to take virtual tours of properties from the comfort of their homes. There is also an ongoing discussion on the metaverse where customers will be able to trade virtual properties.
However, the simplest but most disruptive technology is a marketplace where a customer can find apartments and buy them online in seconds as if they had booked a hotel through Airbnb.
Bringing this platform to the Dubai market, UAE-based proptech startup Realiste debuted last year. The platform displays off-plan properties with market discounts and allows them to be purchased directly from developers.
Hailing from Russia, Realiste entered the UAE market in February 2022. It took the company less than a year to attract more than 12 advisors to its board, including the vice chair of the board. Board of Directors of Emaar Aisha Bin Bishr. The company has also partnered with 27 developers. By the end of 2022, the company approached $1 million in monthly revenue and is aiming for $30 million by the end of 2023.
The platform targets real estate investors who want to find the most profitable properties around the world without spending weeks searching. “The idea was to wake up in the morning, look at every country in the world, and understand in seconds which city, or residential area, or apartment is ripe for investing right now based on data and projections,” remembers Alex Galtsev. the story of the creation of Realiste.
For now, using Realiste’s platform, investors can choose properties in 10 cities, including Dubai, London and New York. But the startup is expected to add more than 30 cities to the platform throughout this year.
In addition to matching buyers and sellers, Realiste’s AI can also calculate for clients the future growth of a particular asset and suggest how to manage an apartment according to an investment strategy – for example, reselling it in a or two years or rent it.
Realiste AI learns to accumulate housing market data, filter it, and highlight the most expensive and undervalued neighborhoods based on that information. It can also present the price history of a particular area or asset and calculate for users how much they would earn in one, two or three years if they invested in a particular apartment in a particular building. It can also indicate the rental yield they can expect from their properties.
Last year, Realiste used this tool to see how prices have changed in 2022 in Dubai, which areas of this city have seen the fastest growth and what market participants can expect from 2023. He said, for example, property prices in Dubai have risen by an average of 20-40% over the 12 months, with Trade Center First properties posting up to 210% increase. As for 2023, AI predicted local prices would see a 15% increase, with some areas increasing by as much as 46%.
Additionally, Realiste’s technology has shown that areas that were not popular among buyers such as Wadi Al Safa 4, Hesayan First and Al Yalayis will see steep price increases of up to 46%, while favorites of 2022 like Trade Center First, Al Wasl Part 2 and Palm Jumeirah were only expecting to see moderate price growth.
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