Proptech companies are gaining ground and will drive growth in the UAE real estate due to strong start-up ecosystem, government support and high demand for SMART solutions in one of the most promising markets of the world, Invest-Gate reports.
A report by Zoom Property Insights shows that proptech start-ups across the UAE have raised more than $100 mn in funding during the past five years while $16 mn was invested in proptech companies in the emirate during the pandemic, enabling it to grab a prominent spot in the list of most attractive countries for proptech investment.
The report notes that Dubai real estate will continue strong upward trend this year, further increasing demand for proptech companies in the emirate.
Ata Shobeiry, CEO of Zoom Property, says: “The real estate market in the UAE is growing rapidly, with new developments being built all the time. This creates a huge opportunity for proptech companies to provide innovative solutions to meet the needs of investors, sellers, and end-users.”
Shobeiry adds that the recent statistics indicate that proptech companies in the region are growing in number, attracting significant investment, and gaining traction among real estate professionals and consumers.
It is worth noting that the UAE is home to more than 55 per cent of over 200 proptech start-ups in the Mena region, according to Zoom Property Insights.
It is expected that these numbers will continue to grow at a rapid pace as more companies are setting foot in the region, leveraging the ever-growing real estate market of the emirate.
According to Forbes, 95% of buyers engage on online platforms at the discovery stage of their home-buying journey, and 51 per cent buy property online.
Currently, proptech is available in 64 countries worldwide, with around 8,000 proptech companies globally, according to PropTech Global Trends 2020. The US holds the lion’s share of proptech companies accounting for 59.7% worldwide, while continental Europe accounts for 27.2%. Asian proptech real estate industry accounts only for 3.5% and is largely dominated by China.