According to a report from HSBC, more than two thirds of home buyers in the UAE are using technology to track down their perfect property.
The use of property technology (PropTech) in the form of online platforms and apps has taken the world by storm over the last few years, so it’s no surprise that it is just as active in UAE.
Study of buyer behaviour
The research, called Beyond the Bricks, The Future of Home Buying, shows that 72% of property buyers in the UAE use an online platform to search for properties. More than 65% use it to check the value of their own home, around 65% search out information on regulations and tax, about 65% hop online to do some research on potential areas and 64% use the tech to look for prices on possible new homes.
HSBC’s report took in global figures as well, by analysing the opinions of 9,000 buyers across nine countries. This total figure includes more than 1,000 house buyers in the UAE. The study aims to give a broader insight into how property buyers are really feeling, and crucially, how they behave when renting, owning and buying homes.
From FinTech to PropTech
Findings from the report concerning the UAE reinforce the expectation that the revolutionary disruption of the financial sector by FinTech (financial technology) has now spread to property with PropTech.
Although online agents have been active for many years, it’s only recently that they have started integrating the use of apps, as well as tech such as virtual reality (VR) and artificial intelligence (AI). These additions aim to transform all of the stages of the process of buying houses.
The global disruption can be seen in the phenomenal rise in funding for PropTech firms over the last four years. Between 2012 and 2016, global investment has gone from about $221 million (Dh811.73 million) to more than $2 billion.
More changes coming
A representative from HSBC says: “The process of buying a home in the UAE will change substantially in coming years. It will be a more streamlined transaction, with buyers and sellers having greater control and relying much more on technology.”
Forward looking governmental efforts to back this include the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). A number of services and databases are already online, and many more will follow. This clearly demonstrates the power PropTech has to simplify the process and speed up transactions.
Examples of PropTech
Examples of the work DLD have already put in place include the Investment Map portal. This allows investors and businesses to access practical information immediately, particularly information that concerns ongoing real estate investment projects. The Trust Account System app is another example. This manages the registration process of development projects.
Private companies are also driving PropTech, including a sharp increase in property listing websites. There are also more mortgage comparison sites to give buyers an idea of the competition available.
About Samir Salya
Samir Salya is the Chairman of Reign Holdings, and is involved in UK and UAE real estate and construction. Samir holds over 20 years’ experience in executive management, business expansion, performance improvement, sales and marketing