The United Arab Emirates’ proptech sector, valued at AED 2.2 billion (US$599.89 million) in 2024, is projected to reach AED 5.7 billion (US$1.5 billion) by 2030 at a CAGR of 17.5%, according to Research and Markets.

Growth in the sector is linked to rising adoption of technologies such as AI, blockchain, IoT, virtual reality, and augmented reality, which are being used to streamline property development, management, transactions, and investments, while also helping reduce overall costs.

Virtual and augmented reality are increasingly used in the United Arab Emirates’ construction market to improve design accuracy, collaboration, project delivery, reduce errors, and boost safety and client engagement.

Lifesize Plans Dubai, an Australia-based company specializing in life-sized architectural projections worldwide, entered the United Arab Emirates market in 2023 after observing sector growth.

The company’s CEO, Georges Calas, said that immersive VR and AR walkthroughs and AI-driven analytics are redefining how real estate is bought, sold, and built in the United Arab Emirates.

Government support and investor interest continue to drive digital transformation in the country’s real estate sector.

🔗 Source: Lifesize Plans Dubai

🧠 Food for thought

1️⃣ Rapid sector expansion creates consolidation concerns despite strong fundamentals

The UAE’s PropTech sector has grown to 189 companies, nearly tripling in just two years, establishing the country as the fastest-growing PropTech hub in the MENA region1.

However, this explosive growth may be setting up challenges ahead. Industry analysis warns that “high growth figures often precede consolidation, raising concerns about startup survival rates”1.

The sector faces emerging pressures including market saturation, intense competition in property management solutions, and funding bottlenecks that could limit long-term viability for many startups2.

This reflects a common technology sector dynamic where initial enthusiasm and capital influx create crowded markets, ultimately leading to consolidation as only the strongest players survive the maturation phase.

2️⃣ Government backing provides competitive advantage in global PropTech race

The UAE’s PropTech growth is significantly supported by targeted government initiatives that differentiate it from other markets.

The Dubai PropTech Hub specifically aims to double the sector’s value to over AED 4.5 billion by 2030 while attracting more than AED 1 billion in investments3.