Dubai sets the pace as AI reshapes global real estate investment

Artificial intelligence is transforming how property is bought, sold and managed, with Dubai emerging as a test bed for technology-driven real estate investments.

According to a recent Forbes Technology Council report, AI is being used to automate property valuations, forecast demand, analyse tenant behaviour and personalise property recommendations.

Algorithms sift through vast datasets – including transaction histories, rental yields and demographic trends – to identify investment opportunities faster and with greater accuracy than traditional methods.

AI adoption accelerates in Dubai

In Dubai, where property sales reached a record AED 761 billion ($207 billion) in 2024, AI adoption is accelerating as developers, brokers and investors seek a competitive edge. According to Dubai-based property broker Provident Estate, local agencies are integrating machine learning into customer relationship management (CRM) systems to score leads, predict conversion rates and tailor marketing campaigns.

“AI tools allow us to analyse client preferences in real time, which means we can match buyers to suitable properties almost instantly,” Provident said in a recent market note. “This shortens the sales cycle and improves customer satisfaction.”

Predictive analytics is also being used to forecast market movements, drawing on macroeconomic data, infrastructure plans and even social media sentiment. Such capabilities are particularly relevant in Dubai, where new supply pipelines, visa reforms and population growth can shift demand patterns quickly.

Smart buildings drive investor value

Smart building technologies are another growth area. According to Web3 technology specialist, Homecubes, AI-powered energy management systems can cut utility consumption in commercial and residential properties by up to 30%, while predictive maintenance software can detect faults before they cause costly damage. For investors, these efficiencies improve net operating income and asset longevity.

AI is also transforming due diligence. Natural language processing tools can scan legal documents, flagging potential compliance issues, while computer vision systems verify property condition through image analysis. Ultimately, these applications reduce transaction risk for investors.

Dubai’s regulatory leadership supports innovation

Dubai’s cutting-edge regulatory environment is helping the sector establish a lead over global rivals. The Dubai Land Department has digitised much of its property registry, and the government has committed to embedding AI in all key economic sectors by 2031 under the UAE National Strategy for Artificial Intelligence. Proptech startups are also being supported through free zone licencing and funding incentives.

Globally, AI in real estate is projected to grow at a compound annual rate of more than 35% between 2024 and 2030, according to industry estimates cited by Forbes. With Dubai already outpacing regional peers in digital transformation, the emirate appears set to capture an outsized share of that growth.