The still relatively low inflow of foreign investments in the real estate sector in Saudi Arabia could soon see a transformational change, with Realiste, the company which pioneered AI-based real estate investment trend in the UAE, is gearing up to launch its data-based property investment platform in the country.
The Russian-born, Dubai-headquartered proptech company struck a joint venture deal last week with a select group of influential Saudi business leaders, including Ahmed Alenazi, ex-CEO of STC Pay, the first Saudi fintech unicorn startup, to launch its cutting-edge technology to the Saudi market.
Realiste’s platform leverages advanced AI and machine learning to provide accurate and in-depth property evaluations, enabling buyers to make informed decisions on their property investments.
Though Saudi Arabia amended its investment and real estate laws last year to boost foreign investment in the sector, only mega projects such as NEOM, Qiddiya, and the Red Sea Project are attracting big-ticket foreign investments, while retail overseas investments are seen only lukewarm.
“To unleash Saudi Arabia’s potential to attract foreign investments, we are convinced that increasing market transparency is crucial. To achieve this, we believe that artificial intelligence is the most effective instrument to use,” Alex Galtsev, founder of Realiste, told Arabian Business.
“In Dubai, we have validated an AI technology that collects data from multiple sources such as public listings, government sources such as Dubai Land Department and developers’ CRMs, and we hope to transform the budding property sector in Saudi Arabia through this innovative platform,” Galtsev said.
Galtsev said his company was thrilled to bring its high-tech products to Saudi Arabia.
Real estate market in Saudi Arabia
“The real estate market in the kingdom is booming, and we’re confident we can double its growth by introducing the first AI solutions for property investment in the country,” he said.
The Realiste founder said the company was also honored to be working with some of the top business leaders in the region to bring its joint venture to life to make investing in local properties faster and more efficient.
“Realiste is set to become the leading AI-driven company in the MENA, and launching the JV in Saudi Arabia represents the next step towards this goal,” Galtsev said.
Realistes’ ambitious plans in Saudi Arabia includes partnering with top local developers and banks to digitalise 13 cities, enabling prospective investors to easily find and purchase the best properties available.
According to Realiste, the proptech market in Saudi Arabia is one of the most promising in the MENA region.
“The country is the largest economy in the Arab world, driven by its petrodollars, and its government has set its sights on making the country a leader in digital transformation, with over $6.4 billion investments in future technologies and entrepreneurship,” it said.
The Saudi government has invested heavily in new megapolises like Neom, Qiddiya, and the Red Sea Project.
With investments totaling almost $575 billion, these projects will provide 1.3 million housing units, the Realiste top team said.
“Local demand is insufficient to cover this supply, so the market will require more foreign investors. Our AI can gather all the necessary data to enable informed decisions about this unknown market and minimise associated risks,” Galtsev said.
“By integrating AI into the real estate market in Saudi Arabia, we can potentially double its growth in the following five years,” he added.
He said the AI algorithms can process a vast amount of data about a property’s location, features, and recent sales in the area, resulting in a more accurate valuation. Additionally, by analysing data on property prices, sales, and rental trends, AI algorithms can identify future market opportunities.
“This helps investors to make informed decisions and also ensure that buyers and sellers receive a fair price,” he said.
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