The real estate sector in the Kingdom of Saudi Arabia is undergoing a significant transformation due to the adoption of real estate technologies (PropTech). These technologies are reshaping the future of real estate in the Kingdom of Saudi Arabia by providing advanced solutions that increase the efficiency of real estate operations and enhance experiences for both investors and clients.
Over the past five years, the Kingdom has made remarkable progress in digital transformation, creating new opportunities for digital development. Statistics from the Ministry of Finance indicate the growing impact of the digital economy on the Gross Domestic Product (GDP), with the digital sector experiencing over 7% growth in the last year. This growth underscores the sector’s crucial role in achieving economic stability and generating new job opportunities.
The Real Estate General Authority (REGA) is integrating PropTech into its strategy for the digital transformation of the real estate sector. This integration aims to in
crease transparency and reliability, facilitate easy access to real estate data, and provide accurate analyses to support decision-making for investors and developers. These efforts align with the Kingdom’s sustainability goals, focusing on enhancing resource consumption and energy efficiency in real estate. Moreover, REGA’s initiatives are designed to empower the private sector, contribute to local content, diversify income sources, and create both direct and indirect job opportunities for citizens.
This leap in the real estate sector and its technologies stems from the introduction of 18 legislations to date, including systems, regulations, and regulatory controls. These regulations have fostered innovative real estate products and established a supportive environment for innovation and investment in PropTech. REGA’s commitment to enhancing investment in real estate technologies aims to nurture talent, attract investors, and create vibrant and sustainable residential communities.
PropTech encompasses a wi
de range of technological applications that support various stages of the real estate process, from planning and design to construction, purchasing, and management. Key technologies include artificial intelligence, machine learning, big data, virtual reality, the Internet of Things, climate engineering, and blockchain technology. These innovations facilitate enhanced search, marketing, and management practices while also improving customer experience through personalized technological solutions. PropTech boosts digital transactions, automates property management, and enhances sustainability, all while offering a creative landscape for developing a sustainable real estate industry marked by innovation. These advancements raise the quality of services provided to clients and lead to the creation of new, modern products that meet future demands.
In line with these developments, REGA is launching the Global PropTech Summit, which will focus on the digital transformation journey in the real estate sector and the
influence of emerging technologies on its future. The summit will cover various topics, including the legislative framework for real estate technology, innovation, entrepreneurship in the sector, and the capabilities of 3D printing technology in the design and construction process. It will also feature several new initiatives and agreements supporting the real estate technology sector.
Source: Saudi Press Agency