Insights: Why Dubai's proptech vision is great news for the real estate sector
Image: Supplied
Anyone who follows real estate will know that proptech is big business. The sector's global market value is projected to surpass $89bn during the period 2024-32, representing an impressive compound annual growth rate (CAGR) of 11.9 per cent. As these figures suggest, cutting-edge innovations are having a hugely positive impact on the international property landscape.
This is especially true in Dubai. The emirate's property prices are projected to rise by 5-8 per cent this year, and average rental yields are expected to approach the 7 per cent mark.
Innovations connected to artificial intelligence (AI) and blockchain are already unlocking lucrative opportunities for local property investors and entrepreneurs, and related technologies look set to continue to fuel growth over the longer term. Against this backdrop, the UAE's proptech industry stands to achieve a phenomenal 20 per cent CAGR from 2022-28.
As founder and CEO of
Embracing innovation with proptech
Early adopters have already witnessed the myriad ways proptech is making the real estate sector more efficient. It has added value to existing practices through its ability to streamline complex processes, optimise property management systems and improve customer experiences.
The recently announced collaboration between the Dubai Integrated Economic Zones Authority (DIEZ) and the Dubai Land Department (DLD) supports the emirate's ambition to become a leading destination for property innovation, laying the foundations for further innovation and attracting top international talent. Ultimately, this partnership will ensure that budding entrepreneurs, startups and SMEs within the proptech sphere are able to operate in an environment conducive to their long-term growth and development.
Future advances in AI and blockchain will accelerate the pace of change within the industry and generate more diverse investment opportunities. The latest technologies are already facilitating cutting-edge fractional ownership platforms, allowing investors to purchase portions – or 'blocks' – of prime rental properties in Dubai for as little as Dhs500. And this is just the tip of the iceberg. From virtual valuations to augmented reality tours, similar innovations have the potential to revolutionise the real estate industry as we know it, changing how we engage with and invest in our built environment.
Enhancing visibility
Dubai's laser focus on technological innovation within the property sector (think the REES Initiative, the RDI Grant Initiative and the Real Estate Sector Strategy 2033) is enabling talented entrepreneurs and tech experts to conduct research and develop disruptive technologies that will elevate our emirate's position as a leading proptech hub.
Naturally, rapidly advancing capabilities combined with countless opportunities for investors are attracting significant attention from around the world, making Dubai the perfect launchpad for anyone who wishes to showcase proptech innovations to an international audience.
Dubai has also established itself as a gathering point for the global proptech community. Having spearheaded a diverse selection of real estate conferences and trade shows, policymakers are bringing together experts, industry leaders and investors who are leveraging innovations to reshape the future of real estate. These high-profile events help to cement strategic relationships, secure new investment opportunities and further strengthen Dubai's status as an international hotspot for proptech innovation.
Supporting entrepreneurship
Our Emirate's future-focused approach, resourcefulness and innate entrepreneurial spirit have been instrumental in allowing our economy to flourish. The Dubai Economic Agenda (D33), for instance – which aims to double GDP and grow the foreign direct investment (FDI) pipeline to $177bn between 2023 and 2033 – is testament to our leaders' vision, ambition and confidence.
With multiple incentives and support initiatives aimed at fostering the development of startups and SMEs, especially within the realms of technology and digital transformation, Dubai-based proptech entrepreneurs are working in a rich and stimulating environment while benefitting from the financial backing required to rewrite the future of real estate.
Forward-thinking policymaking and investment, coupled with private sector innovation, are enhancing flexibility, accessibility and profitability for property owners, buyers and investors across our Emirate.
For these reasons, I am certain that our government's ambitious proptech vision will continue to benefit Dubai's real estate market for decades – if not generations – to come.
Read:
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dubai Eye
18 hours ago
- Dubai Eye
Dubai's new real estate tokenised platform draws 6,000+ to waitlist
The Dubai Land Department (DLD) has issued its first Property Token Ownership Certificate, a blockchain-based document that formalises fractional ownership of real estate in the emirate. This follows the quick sell-out of the first tokenised property on the Prypco Mint platform, completed within just one day of launch. The platform, licenced by the Virtual Assets Regulatory Authority (VARA) and created in partnership with the DLD, allows individuals to invest in real estate using tokenisation - a process that divides a property into smaller, affordable digital shares. These shares can be purchased by investors, opening the door to property ownership without needing to buy an entire unit. The initiative has already attracted 224 investors, with 70 per cent investing in Dubai's real estate market for the first time. Participants came from 44 nationalities, and the average investment per person was approximately AED 10,714. Interest in the platform continues to grow, with over 6,000 people currently on the waitlist. This project is part of the Real Estate Tokenisation Initiative, supported by the Central Bank of the UAE and the Dubai Future Foundation, and developed through Real Estate Sandbox. By making real estate more accessible, this initiative aims to expand the investor base, speed up transactions, and enhance transparency, aligning with long-term goals under the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda D33. Looking ahead, the DLD is working to allow more real estate developers to list their projects on Prypco Mint — a move that could further reshape how people invest in property, both in the UAE and beyond.
ARN News Center
2 days ago
- ARN News Center
Dubai's new real estate tokenised platform draws 6,000+ to waitlist
The Dubai Land Department (DLD) has issued its first Property Token Ownership Certificate, a blockchain-based document that formalises fractional ownership of real estate in the emirate. This follows the quick sell-out of the first tokenised property on the Prypco Mint platform, completed within just one day of launch. The platform, licenced by the Virtual Assets Regulatory Authority (VARA) and created in partnership with the DLD, allows individuals to invest in real estate using tokenisation - a process that divides a property into smaller, affordable digital shares. These shares can be purchased by investors, opening the door to property ownership without needing to buy an entire unit. The initiative has already attracted 224 investors, with 70 per cent investing in Dubai's real estate market for the first time. Participants came from 44 nationalities, and the average investment per person was approximately AED 10,714. Interest in the platform continues to grow, with over 6,000 people currently on the waitlist. This project is part of the Real Estate Tokenisation Initiative, supported by the Central Bank of the UAE and the Dubai Future Foundation, and developed through Real Estate Sandbox. By making real estate more accessible, this initiative aims to expand the investor base, speed up transactions, and enhance transparency, aligning with long-term goals under the Dubai Real Estate Strategy 2033 and the Dubai Economic Agenda D33. Looking ahead, the DLD is working to allow more real estate developers to list their projects on Prypco Mint — a move that could further reshape how people invest in property, both in the UAE and beyond.
Zawya
2 days ago
- Zawya
Dubai Land Department unveils first-of-its-kind Property Token Ownership Certificate
DUBAI - Dubai Land Department has launched the world's first Property Token Ownership Certificate, following the successful sale of the first tokenized real estate project on the 'Prypco Mint' platform — licensed by VARA — within just one day of launch. This milestone further reinforces Dubai's position as a global leader in real estate innovation and digital transformation. The first project launched under the Real Estate Tokenization Initiative attracted 224 investors, 70% of whom entered Dubai's real estate market for the first time. This highlights strong investor confidence and the accessibility provided by flexible, low-cost digital solutions. Investors represented 44 nationalities, and the average individual investment amounted to AED10,714. As the region's first platform of its kind, the initiative continues to draw significant interest, with the waitlist exceeding 6,000 requests. This surge in demand reflects Dubai's growing appeal to new segments of global investors seeking innovative and accessible property ownership models. Dubai Land Department developed the Real Estate Tokenization project in collaboration with the Virtual Assets Regulatory Authority (VARA) and the Central Bank of the United Arab Emirates and the Dubai Future Foundation (DFF) through the Real Estate Sandbox. It is being executed through Prypco Mint. The initiative aims to broaden the real estate investor base while enhancing transparency and accelerating transaction processes, aligning with the Dubai Real Estate Strategy 2033 goals and the Dubai Economic Agenda D33. Dubai Land Department is currently working to enable real estate developers to list their projects on the platform, further expanding the initiative's scope and unlocking new opportunities for digital property investment.
