Dubai’s PropTech boom can help it become the ‘Silicon Valley of real estate innovation’

Dubai's real estate market boom is positioning the emirate as a strong base for property technology start-ups, supporting its goal of attracting more expertise and investments in the sector, the founder of the Step Conference has said.

The emirate's property sector is “quite advanced” compared to other markets because of its fast-moving pace, high standards and the “technology [that is being] applied to a lot” of its components, Ray Dargham told The National at the Step event in Dubai on Wednesday.

“In terms of real estate and construction … it's now a matter of creating companies that can actually lead on these technologies that then can be used also globally by others,” he said. The emirate has “a big enough market [where] you can test [PropTech], then deploy it”, Mr Dargham added.

The Dubai Land Department is planning to attract more PropTech expertise from around the world as it seeks to become a centre for real estate innovation, a senior executive said.

“We want to make sure – we want to create the Silicon Valley of real estate innovation here in Dubai. We want to be the testing platform for technologies [and] be the place where innovators get the funding,” Mahmoud Al Burai, senior director for real estate policies and innovation at the DLD, said at the Step event.

The DLD will join the Step Conference in the latter's international events to bring innovators and investments into the emirate, he said. The department's approach to innovation is ensuring “the government works with the private sector, community, citizens and customers”, Mr Al Burai said in a keynote speech.

Dubai's real estate sector has maintained a strong growth momentum in recent years, recording deals worth Dh761 billion ($207.2 billion) last year, up 20 per cent annually. The total number of transactions for the year increased by 36 per cent to reach 226,000, according to the latest data provided by Dubai Media Office.

The DLD has launched a number of initiatives to promote PropTech, including the Real Estate Evolution Space Initiative last year, where experts explored trends in the international real estate technology market.

Among the department's partnerships is a collaboration with Dubai Chambers to form the Dubai PropTech Group, which aims to promote collaboration between entrepreneurs and innovators.

DLD is also exploring new technologies such as artificial intelligence and blockchain. Mr Al Burai stressed Dubai's Real Estate Tokenisation initiative, which lets investors tap into flexible investment opportunities and “own a piece of Dubai” through blockchain technology.

“The real estate sector has been doing great … we're looking at any technology that adds to the quality of life, that makes people's experience with the city better,” he said.

The 13th Step Conference, which is being held at Dubai Internet City, is hosting more than 8,000 guests and more than 200 speakers. The annual event, which has been held in Dubai, Riyadh and San Francisco, has raised funds worth more than $9.2 billion since it began in 2012.