Artificial intelligence (AI)-powered marketplace is the new buzzword in Dubai’s red hot real estate market, set to transform the face of the emirate’s and the larger GCC real estate market with data analysis-equipped property purchases directly from developers in just a click.
The platform – billed as the first in the region and developed by Dubai-based proptech Realiste – acts as a marketplace where customers can find the best apartments off-plan with value market discounts and then buy them directly from developers.
AI can also calculate for clients a future growth of the apartment’s price and suggest how to manage an apartment according to an investment strategy such as whether to resell it in one or two years or rent it out to earn a higher return.
Though Dubai and the larger GCC region has been seeing increased use of AI in some areas of real estate operations, Realiste’s new platform is the first such online booking system in the MENA region that helps real estate investors purchase off-plan apartments directly from developers.
“Investors can use our new platform to purchase properties as if they are booking hotel rooms via Airbnb,” Alex Galtsev, founder of Realiste, told Arabian Business.
“Marketplace, where customers can choose and then buy online the property they want, is a very simple yet powerful product. People have already learned how to order a taxi or book a hotel room in one click. Buying property this way is the next step in a total digitalisation of their lives,” Galtsev said.
Galtsev said so far, more than 60 off-plan apartments were sold directly from developers through Realiste’s AI-powered platform.
“Even though this number may seem small, this is a big step for the real estate market where most deals occur offline and can take up several months,” he said.
The founder of the proprech, originally from Russia but relocated its headquarters to Dubai last February, said what its new AI-powered platform offers is total transparency and simple customer experience, which will further stimulate investment in the property market in Dubai.
“As the platform is targeting real estate investors, it can also help the Dubai government to accelerate the city’s real estate market growth in a big way,” Galtsev said.
New AI-powered platform to boost investments
Industry analysts said Realiste’s new product will help both local and foreign investors now to easily access apartments in Dubai without spending weeks on research.
Besides allowing users to choose and buy properties online directly from developers, the new platform can also see all the data they need including potential ROI (return on investment), prices growth, to make an informed decision regarding investing, they said.
This is expected to further boost capital inflow into Dubai’s residential property market, which has been on a bull run for several months now, clocking millions of dollars worth deals almost on a daily basis.
Predictive modeling
Galtsev said another key way in which AI is expected to change the real estate market in Dubai in 2023 is through predictive modeling.
By analyzing large amounts of data, AI can help real estate developers and investors make more accurate predictions about future market trends, such as property prices and demand for certain types of properties, he said.
“This information can help them make better-informed decisions about where to invest and what types of properties to develop,” Galtsev said.
For now, investors who see property as a way to boost their capital have to research the market and compare lots by themselves or rely on realtors’ advice.
Galtsev said Realiste’s AI is taught to accumulate data about the housing market, filter it, and highlight the most overpriced and underestimated districts based on that information.
“It can also showcase a price history of a particular area or an asset and calculate for users how much they would earn in one or two, or three years, if they invested in a particular apartment in a particular building. It can also tell what rental yield they can expect from their properties,” he said.
This way, investors can always profit from their deals by choosing only growing areas and assets, he said.
AI in property market in MENA to stay
The latest AI-powered marketplace for property transactions are expected to emerge as a big trend in MENA in the coming years, driven by the increasing adoption of digitalisation and the availability of data in the region.
According to a report by consulting agency Mordor Intelligence, the real estate market in the MENA region is expected to adopt AI technology in various areas such as property management, customer service, and marketing.
The use of AI in property management can help in automating tasks such as lease management, rent collection, and maintenance scheduling, while in customer service, AI-powered chatbots can assist in answering customer queries.
In marketing, AI can be used for creating targeted advertising campaigns and analyzing customer data to identify trends and preferences.
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