Tuesday, 02 January 2024 12:17 GMT

How Artificial Intelligence Can Fix Issues In UAE Real Estate


(MENAFN- Khaleej Times)

The UAE's real estate market is booming. Billions are changing hands each year, developers are thriving, and brokers are making fortunes. But beneath the success lies a billion-dollar blind spot. Technology has transformed nearly every industry over the past decade, yet real estate brokerage in the UAE remains largely unchanged. Manual processes, inconsistent service standards, and opaque pricing persist in a system designed more to serve brokers than the clients they represent.

This lack of evolution isn't due to a shortage of opportunity. On the contrary, the conditions for transformation are uniquely strong. The UAE has built world-class foundations for an AI-powered economy: open access to property data, supportive regulation, and even the world's first country to appoint a minister dedicated to AI. Generative AI, with its ability to process vast amounts of information and personalise experiences, is the catalyst that could finally disrupt an industry long overdue for change.

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The perfect storm for disruption

Disruption typically occurs when incumbents grow complacent, clinging to profits in a booming market while overlooking customer needs. That is precisely what is happening in real estate brokerages today. Buyers and sellers routinely complain of brokers focused on closing deals rather than offering credible advice. Agencies often fail to take responsibility for their agents' conduct, eroding trust further.

Two factors now threaten this status quo. First, government regulation has made property data fully transparent and enabled near-complete automation of transactions. Second, generative AI has arrived – a technology far more disruptive than platforms or the sharing economy. These forces together create the perfect conditions for change.

Beyond facilitation: Meeting customer expectations

Both buyers and sellers in the UAE are paying hefty fees to brokers. Yet too often, what they receive are facilitators, not trusted advisors. Real estate is perhaps the only major asset class where valuations are not grounded in data and analytics. This lack of rigour leaves clients exposed to pricing inconsistencies, protracted negotiations, and lengthy property searches.

The gap between what clients expect and what they experience is exactly where AI can make the biggest difference. By harnessing publicly available data and advanced analytics, AI can level the playing field for consumers, making transactions more transparent, efficient, and cost-effective.

How AI benefits buyers and sellers

For end-users, AI can deliver the kind of service standards they already expect in other areas of life and business:

. Higher service standards – In 2025, consumers are accustomed to seamless digital experiences. AI-powered platforms can ensure the same in real estate, eliminating frustration with outdated processes.

. Informed decision-making – With all property-related data publicly accessible, AI enables buyers and sellers to analyse and evaluate market trends directly, empowering them to make faster and more confident choices.

. Faster, more cost-effective transactions – By reducing reliance on overstretched brokers, AI-driven processes put control in the hands of clients, cutting costs and accelerating timelines.

In short, disruption will provide better service at lower cost – the ultimate measure of innovation.

A new era for brokers

Some may see AI as a threat to traditional brokers, but the opposite is true for those who adapt. While automation can streamline data-heavy processes, human expertise remains critical in high-ticket transactions where emotions, risks, and aspirations are at play. AI is not a replacement but an augmentation of brokers' capabilities.

Forward-looking agents can leverage AI to:

. Deliver better advice – With reliable data and predictive analytics, brokers can provide more accurate valuations, tailored recommendations, and effective marketing strategies.

. Focus on people – By offloading repetitive tasks to AI, agents can devote more energy to understanding their clients' fears, ambitions, and hesitations, ultimately guiding them through difficult decisions and closing more deals.

The brokers who embrace AI will strengthen their reputations and expand their businesses. Those who resist will risk becoming irrelevant.

Why companies stand to gain

The benefits extend beyond individuals. Real estate companies can use AI to scale more efficiently and ensure greater brand consistency:

. Economies of scale – Traditionally, growth in brokerage meant hiring more agents and support staff. With AI, companies can handle significantly more transactions without proportional increases in cost, driving profitability.

. Consistent client experiences – Automating pricing decisions and digital client journeys allows firms to enforce service standards across all brokers, protecting brand reputation and ensuring quality control.

By embedding AI into their operations, real estate companies can align efficiency with long-term growth.

Time for change

The UAE has already laid the groundwork for disruption: open data, supportive regulation, and a national ambition to lead the world in AI. Consumers are ready, even demanding, better experiences. What is missing is courage.

Brokerages that cling to outdated models will quickly find themselves obsolete. Those that embrace AI today will not only remain relevant but will position themselves to own tomorrow's billion-dollar market.

The blind spot is clear. The technology is here. The only question is: who will lead the change?

The writer is the Founder and CEO of AIR (AI Realtor), an AI-powered real estate brokerage based in the UAE.

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