< PreviousPROPTECH PLATFORMS 60SEPTEMBER 2024 It is not surprising that many aspire to own property in a city like Dubai. With a strong property market and hosting some of the fi nest developments in the world, along with a wide range of world-class amenities, Dubai sets high standards for housing that cannot be overlooked. And to help people realise their home-buying dreams, the landscape of lending has undergone a remarkable evolution. From traditional brick-and- mortar institutions to online platforms, the way people access loans has drastically changed. Hence, in this article, we dive into the shift from traditional to digital lending and explore the various benefi ts and challenges it entails. THE RISE OF DIGITAL LENDING IN THE UAE Despite economic challenges, the UAE proptech sector has demonstrated remarkable resilience. According to a 2023 annual property report, the UAE is currently hosting more than 55% of over 200 proptech start-ups in the MENA region. This surge underscores the growing global confi dence in the sector’s potential to revolutionise real estate transactions, and the numbers are expected to rise rapidly as more companies enter the robust UAE ecosystem. Digital lending platforms are transforming Dubai’s real estate market by leveraging big data, AI, and machine learning. These innovations are streamlining the mortgage Centre: The UAE is currently hosting more than 55% of over 200 proptech start-ups in the MENA region Right: Arran Summerhill, COO & Co-Founder of Holo Images supplied by: Shutterstock CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 60CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 6023/08/2024 14:4523/08/2024 14:45PROPTECH PLATFORMS 61SEPTEMBER 2024 process, off ering quicker, more effi cient solutions, with pre-approvals often available within minutes. In short, the entire journey—from initial product discovery to receiving the keys to a dream home—is being reduced by up to four weeks faster through digital application and tracking. Post-COVID, especially there is a signifi cant shift across all areas of life, with people becoming more open to transacting online for everything, from food ordering to daily tasks, including banking. In today’s connected world, no one wants to spend work hours chasing banks for results. Providing access and availability online makes processes more accessible for the modern consumer. Moreover, digital lenders in the UAE off er personalised services by analysing a wide range of data points to deliver mortgage products that better meet individual needs. FROM TRADITIONAL MODEL TO TECH-DRIVEN APPROACH For years, traditional lending platforms have dominated the UAE’s mortgage market, relying on face-to-face interactions, extensive paperwork, and rigorous credit checks. While this approach off ers stability, it can be time-consuming and frustrating in Dubai’s fast-paced real estate environment. Traditional lenders also have strict criteria, making it challenging for many potential CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 61CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 6123/08/2024 14:4623/08/2024 14:46PROPTECH PLATFORMS 62SEPTEMBER 2024 homeowners to secure mortgages. The reliance on manual processes often leads to longer approval times, a signifi cant drawback in a market where property transactions are highly competitive and time-sensitive. Other key diff erences, which stand out between the two lending approaches include: Effi ciency and speed: Digital platforms drastically reduce the time required for mortgage approval by automating much of the process, which is crucial in Dubai’s fast-paced market. Accessibility and inclusivity: Digital lenders make it easier for a diverse range of borrowers, including expats, to access mortgage services. Their reliance on broader data sets allows for more fl exible risk assessments. Personalisation: The use of AI and big data enables digital platforms to off er highly personalised mortgage products, tailored to the unique needs and circumstances of each borrower. Transparency: Digital platforms often provide greater transparency in the lending process, with clear, upfront information about rates, fees, and terms, which can be easily accessed and understood by borrowers. THE FUTURE OF REAL ESTATE FINANCING IN THE UAE The UAE proptech sector stands to benefi t from the global proptech industry’s monumental growth, which is projected to reach $86.5 billion by 2032, with a compound annual growth rate of 16.8%. Moreover, as the digital lending platforms evolve, they will drive further innovation in the UAE’s real estate market. One must however not forget that the future of real estate fi nancing in the UAE will likely see a blend of both, traditional and digital approaches. After all, by leveraging the strengths of both, the market can become more effi cient, inclusive, and transparent. Also, the ongoing collaboration between proptech innovators and traditional fi nancial institutions will be crucial in driving progress and ensuring that home buyers have access to optimal mortgage solutions. Post-COVID, people are more open to online transactions for everything, from ordering food to banking” Left: Digital lenders make it easier for a diverse range of borrowers, including expats, to access mortgage services CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 62CWPME_Sep2024_58-62_Proptech Platforms_13365159.indd 6229/08/2024 17:2529/08/2024 17:25NAVIGATE THE LANDSCAPE OF BUILDING BRILLIANCE, WITH NO INTERRUPTIONS UH OH, THE REST IS ONLY FOR SUBSCRIBERS SCAN BELOW TO JOIN THE EXCLUSIVE COMMUNITY64SEPTEMBER 2024 SUSTAINABLE SPACES Future proofing spaces with green innovations, eco-friendly designs, and zero waste practices 64SEPTEMBER 2024 CWPME_Sep2024_64-65_Sustainable Spaces Opener_13364525.indd 64CWPME_Sep2024_64-65_Sustainable Spaces Opener_13364525.indd 6423/08/2024 14:4723/08/2024 14:4765SEPTEMBER 202465SEPTEMBER 2024 CWPME_Sep2024_64-65_Sustainable Spaces Opener_13364525.indd 65CWPME_Sep2024_64-65_Sustainable Spaces Opener_13364525.indd 6523/08/2024 14:4723/08/2024 14:47SUSTAINABLE SPACES 66SEPTEMBER 2024 CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 66CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 6626/08/2024 14:5226/08/2024 14:52SUSTAINABLE SPACES 67SEPTEMBER 2024 FOR A HEALTHIER PLANET Yousif Ahmed Al-Mutawa, CEO of Sharjah Sustainable City, offers valuable insights into the innovative strategies they have implemented to create a sustainable and environmentally conscious urban environment Interview by Shehzin Shaikh During the fi rst half of 2024, the real estate sector in the Emirate of Sharjah experienced signifi cant growth, with trade values increasing by 35.6% compared to the same period in the previous year. The total real estate trade surpassed $4.95 billion (AED 18.2 billion), driven by a notable rise in sales transactions, which climbed to 10,809 from 6,592 transactions in the fi rst half of 2023. Sharjah Sustainable City played a crucial role in this positive trend, as the fi rst sustainable master-planned residential community developed by Sharjah Investment and Development Authority (Shurooq) in collaboration with Diamond Developers. The community achieved a sales transaction value exceeding $680 million (AED 2.5 billion) across all four phases. Yousif Ahmed Al-Mutawa, the Chief Executive Offi cer of Sharjah Sustainable City, shared exclusively with us how the project is supporting the government of Sharjah’s sustainable development goals and leading the way in promoting sustainable living in the emirate of Sharjah and the UAE. He detailed the project’s eff orts towards achieving a low-carbon future that encompasses the three pillars of sustainability. What are the key sustainability metrics and targets the project aims to achieve? The city promotes the food-energy-water Images supplied by: Sharjah Sustainable City CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 67CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 6729/08/2024 17:2629/08/2024 17:26SUSTAINABLE SPACES 68SEPTEMBER 2024 nexus by providing practical solutions related to food security, water, and energy management, as well as natural resources conservation. It makes the best use of resources and treats 100% of its wastewater for landscape irrigation, maximises recycling to divert waste from landfi lls, and promotes walkability and the use of clean mobility. Overall, the city contributes to several UN Sustainable Development Goals (SDGs) including: • SDG7/Aff ordable and Clean Energy: The city’s goal is to rely 100% on renewable energy sources, like solar power, to meet its energy demands. • SDG11/Sustainable Cities and Communities: The development is designed to promote sustainable urbanisation through the inclusion of green spaces, walking paths, bike lanes, and jogging tracks. • SDG12/Responsible Consumption and Production: The city encourages its residents to recycle, reduce, and reuse waste through educational and practical recycling programs to move toward more sustainable consumption patterns. • SDG13/Climate Action: The city is committed to reducing greenhouse gas emissions and promoting sustainable living practices to address the issue of climate change. • SDG 15/Life on Land: The city aims to preserve and protect our natural ecosystems, including native fl ora and fauna, by implementing sustainable land-use practices. • SDG17/Partnerships for the Goals: The city fi rmly believes that collaboration is vital to achieving SDGs. That’s why it makes it a point to partner with like-minded individuals and organisations to create a sustainable community that benefi ts everyone. Overall, the city’s broader goal is to create an eco-conscious community that values eco-friendliness and sustainable living. It places high importance on sharing knowledge and works to raise awareness about the environment by educating and engaging its residents, including women and children, on topics related to sustainability. In line with these eff orts, the city regularly organises workshops and events that include hands-on training focused on diff erent CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 68CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 6826/08/2024 14:5626/08/2024 14:56SUSTAINABLE SPACES 69SEPTEMBER 2024 Left: Yousif Ahmed Al- Mutawa, Chief Executive Offi cer of Sharjah Sustainable City; The development features 1,250 villas Right: The city has 11.8 kms of rubberised jogging tracks, 1.6 kms of cycling tracks, and 8.4 kms of pedestrian sikkas topics contributing to the sustainable use of resources, such as water and energy. The city is committed to fostering a continuous chain reaction of positive change, making its residents ambassadors of sustainable living and promoting the importance of wellness and sustainability. What amenities and facilities are available to promote health, wellness, and environmental awareness? The development places a huge emphasis on wellness and has implemented a wide range of initiatives and facilities for residents. It off ers mixed-use amenities, including various sports and wellness facilities, separate gyms for men and women, a swimming pool and health clinics. Moreover, to promote a healthy lifestyle, the city has 11.8 kilometres of rubberised jogging tracks, 1.6 kilometres of cycling tracks, and 8.4 kilometres of pedestrian sikkas. Additionally, the city promotes local farming and healthy eating through urban farms and biodomes with vertical farms that produce chemical- free leafy greens and vegetables. Our villas are furnished with energy- effi cient kitchen appliances and incorporate passive design techniques to minimise sun exposure and enhance shading. Featuring highly insulated, UV-refl ective walls, roofs, and windows, the villas decrease the need for air-conditioning, leading to reduced electricity consumption and operational energy. Additionally, active design strategies are employed to ensure the villas consume signifi cantly less energy than comparable residences in Sharjah. These strategies include a Variable Refrigerant Flow (VRF) air-conditioning system, LED lighting, and energy-effi cient home appliances like refrigerators, microwaves, dishwashers, and washing machines. What were the main challenges faced during the development of the Sharjah CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 69CWPME_Sep2024_66-71_Sustainable Spaces_13370585.indd 6926/08/2024 14:5626/08/2024 14:56Next >