The UAE’s real estate sector is undergoing a seismic shift. From AI-powered smart homes to mandatory emissions reporting, technology and sustainability are no longer optional add-ons but central forces shaping the market.
In an exclusive conversation with The Gulf Pulse, Michal Hansen, Partner and Head of Exclusive Project Sales and Wesley Thomson, Partner and Head of ESG, MEA at Knight Frank shared insights on how emerging technologies, regulation and sustainability are redefining the industry.
Hansen said that Virtual Reality (VR) and Augmented Reality (AR) have transformed how buyers experience properties. “Instead of just looking at drawings or brochures, buyers can now walk through a project before it’s even built. At Knight Frank we have built this into our Experience Centre, an immersive space where clients can step into developments like SHA Residences Emirates which is the region’s first dedicated wellness branded residences, and actually feel the lifestyle. It’s also a powerful tool for international buyers who may not be based here,” he explained.
On Dubai’s decision to launch the PropTech Hub in July under the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence, Hansen described it as “a brilliant step” that reinforces the city’s ambition to be a global leader in real estate innovation. “Bringing together developers, tech companies and start-ups under one umbrella is only going to accelerate progress, and this is positive for both the market and investors,” he added.
Discussing the integration of AI in real estate, Hansen pointed out that smart buildings are no longer the preserve of top-tier developers. “Buyers are starting to expect smart homes for improved efficiency and healthier living. We see this with projects like SHA Residences Emirates where wellness and technology go hand-in-hand,” he said, adding that smaller developers will have to follow suit or risk falling behind because the market is moving quickly in this direction.
Smart lighting, for example, harmonises the body’s sleep-wake cycle through specific tones and hues, creating a balanced circadian rhythm.
Hansen also highlighted how AI-based valuation models are creating greater trust in transactions. “Instead of relying on limited comparisons, we can now look at millions of data points to get a more accurate and fairer price. This builds trust for buyers and gives developers a clear competitive edge. It also brings a new level of transparency to the industry which ultimately benefits everyone involved,” Hansen explained.
For Thomson, sustainability is now at the centre of UAE real estate. He noted that it has evolved from a compliance exercise into a boardroom priority, especially following the enactment of the Law for the Reduction of Climate Change Effects which came into force on May 30, 2025. “The law now requires all public and private entities in the UAE, including free zones, to measure, track and report greenhouse gas emissions using approved methodologies. For the real estate sector, this means reporting and disclosure are no longer optional,” Thomson said.
He observed that while developers are launching impressive ESG programmes, many struggle to align disclosures with international frameworks such as Global Reporting Initiative (GRI), International Sustainability Standards Board (ISSB) and Task Force on Climate Related Financial Discloures (TCFD). “Supply chain accountability has also become non-negotiable. Contractors and material providers must now provide verified ESG data or risk being excluded from major projects,” Thomson added, pointing out that several developers have already made ESG data disclosure around carbon emissions mandatory, adding that to overcome these challenges, the industry requires training, awareness programmes and incentive structures that bring the entire supply chain up to standard.
Transparency, accountability critical
On raising awareness, Thomson stressed that transparency and accountability are critical. “Today’s investors, tenants and communities are increasingly alert to greenwashing, which means developers must demonstrate progress through verifiable certifications such as LEED, BREEAM, WELL or Estidama to create trust.”
He also said that AI-driven energy management systems are becoming indispensable in tackling one of the UAE’s biggest challenges—cooling, which accounts for more than 70 percent of peak electricity demand. “By using AI and automation, developers can not only optimise energy use but also strengthen ESG reporting, ensuring disclosures are accurate, efficient and aligned with international frameworks,” he added.
Thomson also pointed to innovation in construction as a way to embed sustainability into practice. “By embracing circular economy principles, modular housing and 3D printing, developers can reduce their carbon footprints and costs. The Dubai 3D Printing Strategy mandates that 25 percent of all new buildings be 3D-printed by 2030, providing a clear roadmap for scaling these approaches.”
With emissions reporting now legally mandated, he concluded that ESG awareness has moved far beyond campaigns and slogans. “Sustainability must be embedded across the entire value chain. As a result, ESG awareness shifts from just a talking point into a fundamental industry standard that drives long-term resilience and competitiveness,” he said.
The UAE’s PropTech sector, valued at AED 2.24 billion in 2024, is projected to nearly triple to AED 5.69 billion by 2030, according to reports.
