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Dubai's skyline, adorned with breathtaking architecture and monumental buildings, has been dramatically transformed 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 ushered in a new era of sustainable practices by transforming Dubai's traditional property management and transaction practices. Let's find out how:
Tech-savvy players in Dubai's real estate market are adopting augmented reality and virtual reality technologies to provide potential homebuyers with an immersive remote viewing experience. These virtual technologies not only streamline the home buying process but also save time and money by enabling 360° virtual property viewings. Consequently, they enhance the customer experience as buyers and investors better understand the features and layout of the property.
These remote collaboration tools have become an indispensable aspect of secure and seamless real estate transactions in Dubai. Some AR/VR-enabled PropTech solutions enable virtual tours by generating 3D models of various properties, while others allow users to create floor plans and architectural designs and even virtually decorate living spaces from the comfort of their homes. In addition, tools using AR/VR give intermediaries a competitive advantage.
The Dubai government is also actively supporting VR initiatives in the region's real estate sector to attract global investors through immersive experiences that transcend geographic barriers. One of the notable ventures in this regard is the launch of the VR Real Estate Platform by the Dubai Land Department (DLD). This platform allows real estate agents to remove geographical restrictions and create immersive VR tours of their property listings for potential investors around the world, in addition to offering them a realistic preview of their future investments. The impact has been remarkable - more than 1,000 real estate agents have used the platform, collectively generating more than $1 billion in property sales. In addition, to protect the interests of investors and buyers, the government has created a regulatory framework to ensure the ethical and safe use of AR/VR technology in the real estate market. The enthusiastic adoption of VR in Dubai puts it at the forefront of a transformational shift.
Artificial Intelligence: changing the rules of the game
Artificial intelligence - a new thing in Dubai's property market - is also replacing traditional property valuation methods. Data analysis tools using artificial intelligence are being used to ensure price accuracy and reduce valuation disputes. Similarly, AI-powered search platforms are personalising buyers' journeys by instantly analysing user behaviour and recommending properties based on their unique requirements. In addition, AI-powered chatbots streamline communication by providing real-time support to clients.
Dubai's real estate market will soon witness the launch of a revolutionary AI-based app that will simplify real estate transactions and make them as easy as trading stocks. Not only will it streamline the buying, tracking and selling of properties, it will also offer valuable insights that will help developers make smarter decisions on project types and pricing strategies.
Sankey Prasad, Chairman & MD, India and CMD Middle East Project Leaders, Colliers.Sankey Prasad, Chairman & MD, India and CMD Middle East Project Leaders, Colliers.Blockchain technology is known to increase transparency, security and efficiency in real estate transactions through a decentralized ledger system. Dubai is the first city in the world to implement real estate transactions powered by blockchain. In 2017, the Dubai Land Department (DLD) set a global precedent when it launched a blockchain-based system to register all real estate transactions, including lease registrations.
It is also worth noting that the real estate boom in Dubai is being driven not only by traditional investors but also by young cryptocurrency traders. With supportive regulations and a robust infrastructure, the city is attracting cryptocurrency enthusiasts looking for a lucrative place to invest and establish themselves. As a result, many crypto investors flock to Dubai, attracted by its welcoming environment and the opportunity to secure their wealth through real estate investments.
Smart buildings powered by Internet of Things (IoT) technology are also redefining property management in Dubai. Recently, a Dubai developer has partnered with Chinese technology company Xiaomi to incorporate smart building solutions into its upcoming condominiums. IoT-enabled sensors and integrated monitoring systems help property managers streamline building management by providing real-time insights into temperature, humidity, air quality and energy consumption. Smart homes also help residents save on energy costs. In addition, smart locks, smart smoke detectors and smart water leak sensors give them peace of mind even when they are away from home.
Developers in Dubai are also using technology to efficiently manage green buildings. The city aims to reduce carbon emissions by 50% by 2030 and achieve zero net carbon emissions by 2050. Therefore, they are adopting green technologies to achieve these goals. In 2011, Dubai Municipality mandated green building standards for all government buildings. Private developers were also encouraged to explore sustainable development practices through this initiative. In 2016, the Municipality took another significant step by making green building standards mandatory for all new buildings across the emirate. This progressive strategy is in line with Dubai's Smart City vision. As a result, property managers are implementing recycling, waste reduction and composting to reduce the amount of waste produced by buildings.
The growing adoption of PropTech is facilitating a sustainable and transparent future for Dubai's real estate sector. Moreover, Dubai is becoming a PropTech destination as several PropTech startups are setting up base in the region. As a result, its real estate sector will witness further technological advancements in the coming years, besides setting new standards in the industry. Moreover, such advancements will not only drive innovation but will also bring in investors from across the globe, enabling the City of Gold to meet its ambitious goal of doubling its population to 5.8 million by 2040.
SOURCE: KhaleejTimes: The author is chairman and managing director of Colliers for India and director for projects in the Middle East
