Artificial intelligence raises real estate investment returns in Dubai

The "Realist" platform for real estate studies and consulting confirmed that employing artificial intelligence in the real estate investment activity, which is one of the most important economic activities in Dubai, would enhance its profitability and raise its returns.

According to a new study conducted by Realist, which relies in its studies and research on the capabilities of artificial intelligence in monitoring and analyzing real estate data and predicting prospects for the growth of the real estate sector in various markets. The integration of artificial intelligence capabilities in real estate investment brings benefits to the government, investors, construction companies and financial institutions.

The best real estate investment opportunities

“The government and financial institutions benefit from the efficiency and transparency of artificial intelligence in achieving accurate monitoring of real estate deals,” said Alex Galtsev, CEO of Realist.

  While construction and development companies benefit from it in making decisions based on reliable information regarding their upcoming projects. Finally, investors benefit from artificial intelligence by using its predictive algorithms to identify the best and most profitable real estate investment opportunities.

Attracting foreign investors

Galtsev added: “The UAE, and Dubai in particular, has become a global center for real estate investors thanks to several advantages, including its innovative use of real estate solutions supported by artificial intelligence, which bring enhanced levels of transparency to the real estate market, which supports its ability to attract more foreign investors.”

Indians top the list of Dubai real estate buyers 

The study touched on monitoring the most prominent nationalities of foreign investors in the real estate market in Dubai during the current period.

The study stated that Indians currently rank first, especially since last year witnessed a huge increase in Indians’ purchases of Dubai real estate, as the total value of Indians’ real estate investments in Dubai increased by the end of 2022 to $4.33 billion, about twice their total value by the end of 2021.

Indians accounted for about 40% of the total buyers of housing units in Dubai during 2022. The study stated that the average prices of housing units purchased by Indians in Dubai during the past year ranged between $430,000 and $460,000 per unit.

Indians prefer real estate investment in Dubai, especially investing in extremely luxurious units, due to the 30% drop in real estate market returns in India due to the economic repercussions resulting from the outbreak of the "Covid 19" pandemic.

Golden Residency Visa

  The study indicated that the "golden residency" visa, which the UAE government began to grant to certain groups during the outbreak of the pandemic, clearly contributed to attracting more Indian real estate investors to the country, especially Dubai, last year.

The most profitable areas

The study dealt with expectations about the most profitable areas in terms of real estate investment in Dubai during the next year. Using artificial intelligence tools, it monitored these areas from the sum of the expected average price of a real estate unit in the region and the expected rental return on renting it during 2024.

The result was that the "Jebel Ali Part 1 2" region took the lead, as investment in its real estate is expected to bring a return to investors during the next year, amounting to an average of 28.83%.

Knowing that the average price of a real estate unit in this region is 1,027,863 dirhams, which means that it is expected that the investor in real estate in the region will reap a return on investment in one real estate unit during 2024, amounting to 299,108 dirhams.

Bluewaters Island came in second place, with a return on investment expected to reach 21.75%.

  Given that the average real estate unit price on the island is 7,200,000 dirhams, this means that the investor is expected to earn from renting his unit on the island a return next year of 1,569,600 dirhams.