The pandemic has accelerated the adoption of technology around the world, revealing new, more efficient solutions to challenges. Every stage in the home purchase process, from the first property tour through financing and eventually signing the dotted line, constituted a risk during the height of the public health crisis since it has always had a touch-and-feel aspect to it.
The Middle East, particularly the United Arab Emirates, has recently been a hub for innovation in all aspects of life and business, with numerous new inventions emerging from the UAE. It’s only natural that the UAE has a thriving proptech business, given its unrivaled real estate standards. Proptech, a combination of property and technology, refers to the management, handling, and monetization of real estate assets using technologies such as artificial intelligence (AI), automation, and the like. Here are some of the most important proptech developments to watch in 2022.
Data validation
Data that is correct and accurate is critical to guaranteeing safe and secure transactions. Because the real estate industry involves such large sums of money, any incorrect information can have catastrophic consequences. Bayut launched TruCheck, a complete authentication solution to validate listings, in 2019. The screening process aims to remove any obstacles that transacting parties may have while dealing with a property online.
As the real estate industry becomes more computerized, we expect to see more market participants take similar steps to maintain data integrity. Furthermore, client-centricity will be a major motivator for proptech adoption. The government recently announced Dubai Re-Tech, an effort that would use AI and big data to help stakeholders adapt to large-scale market changes, enforce strategic planning, and enhance overall investor confidence.
Blockchain technology adoption
The UAE government is committed to smart change in all of its industries, and real estate is no exception. Dubai plans to fully utilize smart contracts using blockchain technology. This will make asset exchange easier and faster, and transactions will be possible from anywhere on the planet. According to a study on how Blockchain is altering the real estate business, it would result in seamless contract administration, automation of every facet of a lease or sale deal, and faster payments.
Increasing investments in proptech startups
Unsurprisingly, the United Arab Emirates is regarded as a hotbed for proptech startups and finance. Proptech growth is expected to be aided by the government’s rapid focus on digitalization. In addition, over the next five years, the country plans to establish 1,000 digital businesses and teach over 100,000 developers from across the world.
In 2022 and beyond, this is likely to boost proptech innovation in the country. Other MENA countries are also seeing an increase in ‘proptech-friendly initiatives,’ with private developers and investors eager to produce cutting-edge tech solutions to differentiate their offers from their competitors.