New technologies have increased investor confidence while making it possible to build more efficiently in the Middle East.

1. How Technology Is Revolutionizing
Real Estate in the Middle East
Dr. Ehsan Bayat

2. How Technology Is Revolutionizing Real Estate
in the Middle East
• The real estate industry in the Middle East is in a period of rapid
transformation driven by the introduction of new technologies. These
advances are shifting virtually every aspect of the industry, from how
people finance purchases to the construction process.
• The changes taking place have the potential to boost the real estate
industries in countries across the region by instilling greater confidence
in investors, renters, and homeowners. Increased security and stronger
guarantees will attract more international investors to contribute to new
construction and drive development in a wide range of different cities.
Moreover, technology is facilitating more efficient use of land and
making it possible to speed development in new parts of the region.

3. Increased Confidence in Purchasing Middle
Eastern Real Estate
• Perhaps the biggest driver of change in the Middle Eastern real estate sector is blockchain
technology. Blockchain allows for the creation of an immutable online record that is
maintained and verified across a large, heterogeneous network. In terms of real estate,
blockchain can be used to verify ownership before a transaction takes place and to create an
official record that prevents challenges down the line. While the idea of purchasing homes
online may sound strange to people in the US, it has already become somewhat common
throughout the Middle East because it allows for greater trust and guarantees honest
transactions.
• Technology can also increase confidence by letting people at a distance get an inside look at a
new property. Photographs can easily be doctored, which makes it difficult to trust that
pictures actually represent the progress on a property or its current state. However,
technology makes it possible to take real-time video tours of buildings so that buyers know
exactly what they are getting. Moving forward, it would not be surprising to see virtual reality
tours of new buildings being offered, especially for buyers who purchase off-plan and want a
sense of what the finished product will look like. Buyers can also use this kind of technology
to plan how they will use the space once they move in, so it can make the relocation process
simpler.

4. New Options for Financing a Real Estate
Purchase
• The impact of blockchain technology extends past the transparency that it provides
for real estate transactions. Using blockchain promotes the tokenization of assets,
something that has made it much easier to make purchases by pooling resources.
Crowdsourcing has already transformed several industries and could soon
revolutionize how real estate purchases are made in the Middle East. Already,
crowdsourcing has expanded beyond residential purchases to include commercial
buildings. This option has become more attractive as technology has created more
ways to make money off a property, including Airbnb and other ways of renting out
space temporarily.
• Some industry analysts believe that crowdsourcing could next extend to urban
infrastructure projects like toll gates and highways. This sort of investment from a
large group of people could help drive the infrastructure development necessary to
continue the region’s economic expansion. In some markets, infrastructure projects
have already been privatized. In the future, it would not be surprising to see a small
town pool its financial resources to launch a new project—such as a highway or a
bridge—that will improve quality of life.

5. Improved Building Capabilities through
Technology
• Construction has also benefited from new technological developments in the Middle East. Big Data can be
used to optimize building systems like heating, ventilation, and air conditioning (HVAC) and even
elevators. Through data collection and analytics, building owners know exactly when elevators should be
serviced to prevent downtime and keep building occupants safe.
• In addition, the Internet of Things (IoT) has sped the development of smart homes. Using the data from a
home already occupied by a family, developers can personalize a new home based on this information. This
capability may lead to more customized homes with designs based on what residents actually need from
their living space. While this is looking to the future to some extent, IoT can already give people a lot of
insight into their home’s energy and water use, among other types of data.
• Builders are also using new technology to create more sustainable communities, which can prove essential
in resource-poor areas. New solar roof tiles make it easier than ever for buildings to exist off the grid or
generate power for the grid. Through improved design, technology has also made self-sustaining structures
possible, and has enabled more efficient landscape irrigation and even smart agriculture.
• All of this together makes it easier to build in places without a lot of infrastructure and reduces the
overall impact of new buildings on ecosystems. Moving forward, driverless cars will also likely change the
face of real estate in the Middle East by influencing the overall approach to urban planning and opening up
more land for development by reducing traffic and even eliminating the need for parking.