Revolutionary Growth Predicted for Global Proptech Market

There are plenty of property technologies that have the potential to transform the local real estate market
Megha S Anthony | UAE | PropTech

The global proptech market is expected to reach a value of $86.5 billion by 2032, with a compounded annual growth rate (CAGR) of 16.8% according to a report by Future Market Insights. The current market size is $18.2 billion. The industry is comprised of over 10,000 proptech vendors, with the United States being the leading country with 59.7% of the total global share, followed by Europe with 27.2% and Asia with 3.5%.

The real estate sector in the Middle East and North Africa (MENA) is rapidly evolving to accommodate technological transformation, in part driven by high demand from foreign investors. Last year, Dubai saw a 20-40% increase in local real estate prices, making it a popular destination for wealthy investors.

There are numerous property technologies that have the potential to transform the real estate market, including virtual reality and 360-degree cameras which allow buyers to virtually tour properties from their homes. There is also ongoing discussion surrounding the metaverse, where customers will be able to trade virtual properties. However, the most disruptive technology so far is the marketplace where customers can find and purchase apartments online, similar to booking a hotel through Airbnb.

One such platform is Realiste, a UAE-based proptech startup that debuted last year. Realiste displays off-plan properties with value market discounts and allows direct purchasing from developers. The company was established in Russia but quickly entered the UAE market in February 2022 and has since attracted more than 12 advisors to its board, including the Vice-Chairwoman of Emaar's board, Aisha Bin Bishr, and has partnered with 27 developers. By the end of 2022, Realiste approached $1 million in monthly revenue and is targeting $30 million by the end of 2023.

Realiste is targeting real estate investors who want to find the most profitable properties globally without spending weeks on research. The platform's AI can calculate the future growth of a particular asset and suggest an investment strategy, such as reselling in 1-2 years or renting it out. The AI is trained to accumulate and analyze housing market data, highlight overpriced and underestimated districts, display a price history of an area or asset, and calculate expected rental yields and returns on investment.

Using Realiste's platform, investors can currently choose properties from 10 cities, including Dubai, London, and New York, with plans to add more than 30 cities throughout the year. Realiste's technology has shown that areas previously not popular among buyers, such as Wadi Al Safa 4 and Al Yalayis, will see sharp rises in prices up to 46%, while popular areas from 2022 like Trade Centre First are expected to see only moderate growth in prices.

In conclusion, the proptech industry is expected to experience significant growth in the coming years, with property technologies offering a wide range of potential to transform the real estate market. Platforms like Realiste, with its AI capabilities and user-friendly interface, are providing investors with the tools they need to make informed decisions about their real estate investments.

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