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What are the biggest challenges of real estate technology?

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Real estate challenges

The property business has certainly gained many advantages thanks to technological advancements. These innovations, however, can sometimes give some trouble to new and established real estate agents. Real estate challenges can come from a diversity of factors such as laws, social changes, and economic issues. The key to success in this field is to learn how to make technology a beneficial factor rather than another problem to overcome.

In this article, we will talk about the biggest challenges in the real estate business, and how technology plays a role in them. Throughout these topics, we will look at some ways you can address these difficulties effectively.

1. What are the most critical challenges real estate professionals face nowadays? 

2. How can you solve common problems in property management firms? 

3. Which technologies are helping overcome the challenges in property management in the UAE? 

4. Why innovation in the real estate business is difficult and how to solve it?  

5. How has Abu Dhabi’s real estate market surpassed the industry’s challenges despite the pandemic impact? 

6. What are some of the ways advanced tech can address the challenges of real estate sales in the UAE? 

7. How can Connect Property help your real estate business succeed over the real estate challenges?

1. What are the most critical challenges real estate professionals face nowadays?

Situations such as the shifting political climates, environmental change, volatile markets, and evolving technology trends have their effect on the real estate challenges that professionals of the industry face everywhere. Some of them are unique to the realty sector; others can apply to almost any existing industry. The challenges listed here affect brokerages and solo agents critically in one way or another:

1.1. Low inventory 

It is a pretty simple realization: without inventory, there is no income. Finding real estate listings in a low-inventory market has become a major challenge even for experienced agents. In particular, new agents will find it more difficult to find sellers. Due to their lack of experience, their services are less appealing to homeowners. 

1.2. Cultivating a database

The process of building and cultivating a database for leads and referrals is one of the hurdles agents have to get through. However, most of them overlook the real estate challenge of regularly staying in touch with contacts. Besides, it is common that new agents only focus on the immediate sale and do not follow up with past clients.

1.3. Technology adaptation 

Nowadays, it is common to expect from agents to be as savvy at using technology as they are at generating leads. If they purchase the wrong CRM or transfer domains to a new server, it can quickly turn into expensive issues in the property business.

1.4. Costly lead generation

Years ago, savvy marketing agents could generate leads and exposure with a low-cost budget. But now, the unpredictability of auction-based CPC lead generation can augment it drastically. Therefore, with the global saturation of social media networks, real estate digital marketing is more expensive. Besides, it yields lower ROI for publicists. 

2. How can you solve common problems in property management firms? 

Whether you are still an amateur property manager or are in the middle of the path, you must inform yourself about the common property management challenges that every person in the industry shares. There is a chance you already know about them, however, here we also introduce some innovative and practical solutions:

2.1. Guests’ vandalism 

One of the advantages of managing single-family short-term rentals is that you can keep track of the property’s condition and improve its maintenance. Despite that, some guests simply do not care about your property. 

In this context, the solution for this real estate challenge is to always screen your guests carefully and approve them before handing them your property. Besides, do not forget to collect the security deposit and ask guests to provide their ID documents and contact details. 

2.2. Operations management 

Managing the necessary operations is another typical property management challenge that individuals who run multiple properties experience. You are in charge of the maintenance and all the other tasks you should take care of. This means you will have to take control of everything all year round and most of the time, remotely. 

Hence, the solution is finding a way to automate different aspects of your business. A proper property management software will minimize human errors and allow you to keep track of all the operations.

2.3. Overbookings 

As you cannot totally depend on direct bookings, you should know one of the most famous issues in the property business: overbookings. Here’s where using channel managers come to your rescue. When you choose your channel manager, consider one that offers API integration and is synced to similar channels. This way, overbookings are eliminated. 

3. Which technologies are helping overcome the challenges in property management in the UAE?

Taking care of a commercial property is no easy task. There will always be property management challenges, whether it comes from handling complex business tasks or attending to multiple tenants. Thankfully, technologies such as digital property managers are making this work much simpler. 

Overall, as we consider the ways technology can make the challenges in real estate much easier, here are some innovations that will surely ease the way you manage your assets:

  • The Internet of Things has created greater connectivity between property managers and tenants. It may be hard to keep track of the many moving pieces of your units, tenants, and building systems. Thankfully, smart technologies give an excellent solution to this. The IoT and other property software have established clear ways to compile and organize your data so you can stay up to date on what happens throughout your properties.
  • Artificial Intelligence has become a must-have tool to save money, time, and energy. This property management technology can analyze and predict potential problems so you can prevent them before they happen.
  • Make sure to look for technology you can easily learn to navigate. Nowadays, user-friendly software gives asset managers a way to facilitate studying their current situation. Through easily readable formats, color-coded layouts, schedules, and alarms, all of your information can be quickly comprehended. This will help you make the best choices regarding your commercial property investments.

4. Why innovation in the real estate business is difficult and how to solve it?

The urge to innovate is natural. There are numerous real estate challenges and the industry has lots of room for improvement. However, any seller or homebuyer who is a creative problem-solver will know that it is slow to evolve.  

If you look at the history of real estate technology, you will realize that almost everything has been targeted for innovation. As the years passed, numerous ambitious and smart entrepreneurs have prototyped ways to make the home buying process faster and easier. This means that there has been no shortage of effort. The truth is that the industry is changing, but gradually. Like in any legacy industry, it has to contend with both inertia and tradition. Additionally, another barrier is that new innovators in the sector usually underestimate the complexity and issues of property businesses. 

Moreover, entrepreneurs make the mistake of trying to create solutions that benefit all the parties simultaneously. Usually, you need to know and focus on a primary customer type to deliver real value. Having a clear vision of their problems and motivations is fundamental. Also, do not forget that all the innovations you want to accomplish must be within the rules. 

When you already know your customer base and have a game-changing solution that complies with every relevant regulation, the next step will be finding clients. Scaling the distribution of your cutting-edge solution will be a major real estate challenge. As customers continue to seek more seamless and easier experiences, innovations are set to shape the real estate industry’s future. 

5. How has Abu Dhabi’s real estate market surpassed the industry’s challenges despite the pandemic impact? 

Abu Dhabi’s property market has had an outstanding recovery from the real estate challenges brought by the COVID-19 pandemic. Demand for villa rental and sales continues to surge, with prices greatly expanding each quarter of the year. In 2021 alone, more than 9,000 residential units were ready for handover. Additionally, around 2,000 apartments and villas were delivered by quarter 2 of the same year. 

This success has come in part thanks to the great results of projects such as the ones in Al Maryah Vista Island. Besides the hundreds of units sold after the launch of Al Maryah Vista 1, this area will have another 588 housing assets once the Al Maryah Vista 2 project is completed. Promising developments such as these speak greatly of Abu Dhabi’s investment opportunities.

Abu Dhabi’s recovery from the pandemic demonstrates the strong capabilities of the UAE’s property market. Thanks to the nation’s technology, an effective response was given to this international crisis. Because of this, property businesses are growing stronger than before.

6. What are some of the ways advanced tech can address the challenges of real estate sales in the UAE?

The UAE’s real estate sector has been regaining its former momentum. There is numerous good news, such as the accessibility of mortgages for first-time purchasers and the decrease in the required down payment. On the other hand, the delay of the Expo 2020 Dubai has become a positive spur. This gave more time to real estate players to find available UAE homes.

Since the market is filled with uncertainty, real estate players have taken action. Therefore, they have promoted their property projects to the right audience and moment, with the support of advanced technology. In such a manner, cloud-based building information systems have replaced physical experiences with virtual and augmented reality. These newly emerging tech platforms have addressed the current real estate challenges. Players have a variety of tech alternatives they can use to interact with clients instantly and remotely.

Against this background, avoiding to embrace the digital landscape is not an option anymore for agents. The post-lockdown reality has changed the new sales horizons and they can no longer afford to be left behind it. In fact, consulting experts have stated that real estate companies that use virtual imagery and 360 virtual reality tours reported a high customer demand during the lockdown. 

The role advanced technology has played in the UAE real estate industry has been impressive. Since customers were affected by the market uncertainty, the introduction of immersive and compelling experiences has given them the security they most needed. Besides, it has made it possible to save on travel, printed media, and real estate advertising. In this way, firms have attracted and impressed tech-savvy clients, improving the profitability of their business.

7. How can Connect Property help your real estate business succeed over the real estate challenges?

On Connect Property, we have extensive expertise in the most advanced technology. Our services have proven to be efficient against modern real estate challenges. We give property owners a portal where they can list their assets in an intuitive and simple way. Thanks to our dedicated search tools, potential tenants or buyers will easily see and consider your asset.

We also provide assistance to anyone having any difficulties with technology resources. Our 24/7 support hotline is ready to make sure all your inquiries about our services are quickly resolved. Make sure to contact us today and start a successful property investment!

Our team is ready to help you with any property challenges you may be facing. If you wish to talk to our experienced advisors, you can do so by calling us at +971 43 316 688. You may also send your questions to our email,, and we will make sure to answer them as soon as we see them.

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