Cash-rich investors from around the world seem to be taking a special fancy to Dubai’s AI-based proptechs for their property investments in the city, lapping up upscale residential units costing up to $4.5 million through the tech-enabled investment firms, industry insiders said.
The city-based AI-based proptechs such as Realiste has notched up sales of more than 200 properties in Dubai in the first six months of 2023 at an average price of $500,000 and is looking to triple this figure in the remaining half of the year.
AI-based property buying is also said to be gaining momentum in other emirates such as Abu Dhabi, Ras Al Khaimah, and Sharjah.
“It [Realiste AI platform] makes the market more transparent, and the more transparent the real estate market is, the more it attracts investors and clients,” Alex Galstev, founder of Realiste, told Arabian Business.
“When you see that everything is transparent, you can confidently make purchases and earn from rentals or market growth,” he added.
Galstev said the Realiste AI has garnered 200 deals, involving $70 million worth of gross merchandise value in 2023 so far.
“Because the AI is affiliated with the region’s major developers, booking real estate takes place directly with the developer in a matter of mere moments at the press of a button,” he said.
Galtsev said the current average unit price of sale deals booked through its platform is at $500,000 but recently, one of its clients made a deal for $4.5 million.
Realiste said projects by leading developers such as Sobha, Cedric, FIVE, ARK, Aqua properties, Danube and Nakheel are seeing the maximum sales or bookings through its platform.
Second half holds more promise
Realiste said the second half of the year holds great promise as Dubai continues to shine as one of the most compelling cities for investment opportunities.
“We anticipate a sustained demand for investment properties not only in Dubai but also in other emirates like Abu Dhabi, Ras al Khaimah, and Sharjah,” it said.
Galtsev said the firm’s AI-based platform is currently witnessing a remarkable influx of European investors, which further reinforces their positive outlook for the remaining part of the year.
“We expect to triple our growth by capitalising on the increased participation of European investors,” he said.
Currently, the majority of Realiste’s clientele – accounting for about 85 percent – hails from Russian-speaking countries, predominantly citizens of the Russian Federation.
“However, over the past two months, there has been a surge in interest from clients from the UK and Europe,” Galtsev revealed.
Realiste, however, said Indian investors – among the largest investors in Dubai’s real estate market – are yet to take to the tech-enabled system for their purchases, with its platform registering sales by just 3-4 Indian clients in the past two months.
AI-driven platforms revolutionising Dubai real estate
Industry analysts attribute the data-based analytics and forecasts, and the seamless browsing facility for property viewing and options as the main reasons for the rising popularity of AI-based platforms for real estate investments in Dubai.
These platforms collect information about all transactions in the real estate market from a range of sources including government sources and CRM systems for evaluating the movement of prices and demand in each district.
They also provide data on the quality of construction and infrastructure, make forecasts for several years, and calculate the RoI (return on investment) from rent for each apartment, selecting offers that can make a profit from resale or rental.
“The investor simply has to log in, analyse the recommended options, and click the “book” button if any of them are of interest. Further transactions are conducted with the developer directly,” said a senior Realiste executive.
Realiste said about 90 percent of the sale deals registered on its platform are for off-plan projects, while only 10 percent are for secondary sales.
Asette, founded by serial woman entrepreneur Leena Vesterinen, is another AI-based platform that facilitates property investments in Dubai in collaboration with developers across Dubai and the UAE.
Follow us on
