How Proptech Is Shaping The Next Era Of Real Estate At Cityscape, Riyadh

Want to learn more about PropTech? You’re in the right place! In just a moment, we’ll dive into how this game-changing technology is transforming the real estate world.

But first…

Did you know real estate could be your most powerful investment yet? It’s been the cornerstone for generating passive income and building wealth for decades, and now, with technology at its side, it’s more accessible than ever.

PropTech: Elevating Real Estate to the Next Level

PropTech refers to digital solutions that simplify, speed up, and expand real estate transactions and management. It’s revolutionizing the sector, and opening doors—literally and figuratively—for everyone.

With PropTech, investing in real estate is becoming more efficient and profitable, allowing more people to tap into the market. 

This growing fan base of investors sees the combination of traditional real estate value and the modern capabilities of technology as the perfect partnership for their portfolios.

In 2032, the PropTech sector is expected to attract $133 billion in global investments up from just $30 billion in 2022【Ascendix Tech】, a sign that this sector is gaining serious traction among investors.

But what exactly does PropTech mean for investors? It means speed, accessibility, and transparency. 

Here are the facts:

• Tech-driven efficiency: 

With PropTech, the old, slow processes are a thing of the past. Transactions are now up to 31% faster, and properties sell for up to 9% more, letting investors close deals quickly and with added profitability【Van Education Center】. In a world where speed matters, this is a game-changer!

• Increased transparency and transactions: 

Big data and analytics are enhancing the accuracy of property valuations and investment decisions, which is attracting more investors to Dubai’s real estate market.

In fact, the Dubai Land Department reported that PropTech analytics helped increase real estate investments in Dubai by 20% in 2023 【 as cited in Investopia】

And if you’re thinking this is just a Dubai thing, think again 🤔This trend is global 🌍 we’re just spotlighting two key markets here.

Interestingly as well, the Saudi Ministry of Investment revealed that PropTech analytics played a major role in boosting real estate investments by 35% in Saudi Arabia during 2023【as cited in Arab News】

This impressive growth shows how PropTech is taking off in Saudi Arabia, perfectly aligning with Vision 2030’s plan to innovatively reshape the real estate landscape.

Top PropTech Models Driving the Industry Forward

PropTech’s primary goal is creating new investment opportunities and improving the investor’s overall experience. 

Automation is the most in-demand form of PropTech, with one-third of real estate businesses citing it as having the biggest short-term impact. Additionally, 90% of corporate real estate professionals see PropTech as a major opportunity for transformation and innovation in the industry.【impactmybiz】

With more investors catching on, competition for these tech-powered properties is heating up.

Let’s break down some of the key business models in this industry: 

1. Fractional ownership
   
   • How it works: Gone are the days when only the ultra-wealthy could invest in prime properties. This model allows investors to own a portion of a property, rather than having to purchase an entire asset. 
   • Impact: Fractional ownership accelerates access to high-value properties and diverse real estate markets, allowing investors to benefit from rental income and capital appreciation with minimal investment. The global fractional ownership market is projected to grow at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2027【blokzen】
2. Smart home & energy solutions
   
   • How it works: PropTech companies use Internet of Things (IoT) devices to track and manage energy consumption in real-time, providing more control to property managers and owners
   • Impact: Smart buildings can cut energy usage by up to 30%, reducing landlords’ operational costs and increasing tenant satisfaction. Buildings using IoT technologies also report higher rent premiums, up to 20% in major urban centers 【Stratoflow 】
3. Leaseback platforms
   
   • How it Works: Homeowners sell their property and remain as tenants, freeing up capital without the need to move out
   • Impact: Leaseback platforms like EasyKnock report that 70% of users are pursuing new financial goals, with no need to take on additional debt【EasyKnock】

Witness PropTech Success

PropTech is transforming the real estate landscape, and Cityscape Global 2024, Riyadh was the place to witness it firsthand.

With over 500 industry professionals from 170+ countries, the event showcased the trends shaping the future of property investment.

And here’s the big news: At Cityscape, we signed an exciting partnership with Mulkia Investment Company! 🎉 Learn more about how this collaboration is set to redefine real estate fund distribution in KSA, here.