As highlighted by Arabian Business, real estate businesses in the MENA region are seeking innovative ways to increase the speed and efficiency of transactions, prompting a significant development. In the first half of 2024, venture capital funding for PropTech start-ups surpassed traditionally dominant FinTech investments, with $200 million raised.
While the rise of start-ups is notable, legacy firms are also beginning to modernise. Industry players are allocating an average of 20% of their annual budgets to developing and integrating new technologies in hopes of streamlining decision-making, offering alternative payment options and providing real-time monitoring services.
Artificial intelligence (AI), Internet of Things (IoT) and Blockchain are among the most anticipated technologies being explored. Across the board, this is leading to elevated service offerings and transforming the region into a global innovation hub.
What Does This Mean for the Consulting Sector?
The surge in venture capital funding for PropTech start-ups presents new opportunities for consulting firms. Many of these companies will require strategic, financial and operational advice to scale effectively. Consulting firms can assist in developing business models and navigating the investment landscape, ensuring continued growth.
Equally, traditional real estate players will need to build strategies to compete with these agile start-ups. However, many senior leaders will lack the subject matter expertise needed to adapt to the technology landscape. Consulting firms specialising in AI, Blockchain and IoT can position themselves as partners in closing this knowledge gap, assessing the viability of new tools and helping firms develop a long-term roadmap to ensure sustained competitiveness.
The rise of PropTech also hints to an increase in demand for digital transformation consulting. Legacy firms will need to integrate PropTech applications with existing systems while minimising disruptions to ongoing operations. Consulting firms with a proven track record in implementation services, particularly in the real estate sector, are well-positioned to capitalise on this development.
Given the tumultuous year the consulting sector has experienced — marked by reduced client demand and economic uncertainty — this development offers firms a reason to be optimistic. As the real estate market undergoes significant transformation, businesses will be likely to seek consulting services to help them navigate the changes ahead.
- by John Barker