Should Dubai property brokers worry about AI?

Dubai: In Dubai, Property brokers are starting to have a tough time.

Emaar’s launch of its own digital property resale platform – Vyom – allowing owners to directly place listings has shaken up how deals get done in one of the busiest real estate markets in the world.

Not to mention, one of the most lucrative to be a real estate agent, with some of the most eye-popping commissions on offer.

Once the property owner lists on Vyom, an ‘Emaar sales associate’ will get in touch to get the deal rolling. In other words, Emaar is extending its reach into another part of the local property market.

Sure, Vyom only allows the buy-sell of Emaar built properties. But soon, the digital platform would also open listings for Emaar-built units for rents, and that means more competition for Dubai property brokers.  

Damac too has its digital property sales platform, and a couple of other master-developers in Dubai also have plans to take ‘secondary market transactions’ of their units in-house.

“Developers in Dubai are thinking – ‘Why leave something that’s this lucrative for third-parties?’,” said an estate agent who has brokered multiple Dh50 million to Dh100 million deals. “So, if you see more developers get into some part of property resales, no one should be surprised.

“The bigger worry for brokers would be if deals involving the more expensive properties are sealed by in-house sales staff at developers.” 

Broker commissions in Dubai

Broker commissions on property sales in Dubai typically range in the 5%-10% range, and the incentives go bigger depending on the exclusivity of the property, how long it’s been listed, etc. 

Can Dubai brokers up their game?

Real estate agents are fully aware of the challenge, and many are already upping the game. Some are prepared to see some softening on their commissions going forward. And others are starting to use finely tuned AI solutions to help clients pick and choose properties.

Recently, Unique Properties, a real estate agency, announced a tie up with AI Realtor, and committing $20 million over the next 2 years to bring in more AI-enabled services.

‘Not cutting out the human broker’

But be clear - the intention is not to replace property agents with AI.

“Consider a prospective buyer is searching for a property in Business Bay,” said Arash Jalili, CEO of Unique Properties.

“Should the individual engage with one of Unique Properties’ listings on platforms such as Property Finder or Bayut, they are immediately connected with ‘AI Realtor’ via WhatsApp.  At this point, ‘AIR Brain’ assumes the role of a digital advisor.

“The buyer may interact directly with the AI or opt to converse with a lead agent at any time.”

Now, this is important. More potential buyers will probably be comfortable dealing with AI ‘agents’ in the initial part of the search. The AI Realtor will ‘recommend relevant properties and manage the logistics, such as scheduling and follow-ups,” said Jalili.

So, when does the human agent step in?

“During negotiations or deal closing, the human steps into prominence, while AI remains active in the background, supporting and streamlining administrative tasks, and ensuring procedural continuity,” said Jalili.

“Even as (Dubai and UAE) developers bring more sales functions in-house, the demand for trusted advisors - particularly those who can provide comparative insight across different projects - remains strong.”

AI is ‘not’ the enemy

AI will impact jobs across sectors, mostly at the entry-level butgoing forward potentially in any service that can be automated.

In the property business, that would mean, as Jalili says, offering all sorts of value-added services until such time buyers or sellers actually needs a human to close out the deal.  

Early this month, UAE-based Mira Developments said it has invested $3 million in a ‘new real estate agency and investment club in Dubai’ called ‘Percent&Co’.

What Percent&Co does is straight-forward – work with developers such as Emaar, Nakheel, Meraas, Damac, Sobha, Aldar and Mira to focus on international clients. There will be lots of AI-backed help too.

“Percent&Co plans to introduce AI-powered solutions for personalised investment recommendations,” according to a statement. At the same time, ‘recruit top professionals in brokerage, analytics, and marketing’.

So, it’s AI and the human factor coming together to help international investors find assets in the UAE.

As Jalili says it, “Rather than replacing agents, the AI dynamically calibrates its involvement to complement them, ensuring clients benefit from both the operational efficiency of advanced technology and the personalised expertise only a skilled real estate agent can provide…”

That, in essence, is where the Dubai property market is headed – and anyone who combines the human and tech factors best get to thrive…