Proptech in Saudi Arabia: Transforming Real Estate Landscape and Driving Business Expansion
Global tech companies are increasingly expanding to Saudi Arabia to capitalize on growth opportunities in the Kingdom's proptech sector.
Property technology (proptech) in Saudi Arabia remains a catalyst driving the growth of real estate, believed to have been worth $161.3 billion in 2023, generating 9.4% of the country's GDP.
As the Saudi property landscape continues to evolve, there is a pressing need for the adoption of new technologies and digital solutions to streamline operations to boost efficiency. This plays into a Vision 2030 objective to increase homeownership levels to 70% at the end of the decade.
Unlocking New Growth Opportunities for Proptech in Saudi Arabia
As it pursues the implementation of large-scale developments, Saudi Arabia is increasingly recognizing the value of proptech and therefore is rapidly becoming an attractive place for proptech innovators.
Giga projects such as NEOM, Roshn, Qiddiya, Diriyah, Amaala and Red Sea Global, are creating fertile ground for proptech innovations, signifying the importance of the integration of advanced technologies to create smart, sustainable and highly efficient urban environments.
The growing proptech market is bolstered by a potent digital infrastructure that supports 5G networks and data centers, which are necessary for the deployment of advanced proptech solutions, such as virtual property tours or AI-driven property management.
By supporting proptech companies that develop such solutions, the Kingdom is fueling the growth of smart buildings, automated property management systems and better real estate services.
On the startup front, Saudi Arabia is increasingly recognized as a haven for proptech companies, with success stories like Holo. The entry of the global proptech player in Saudi serves as an example of the country's thriving tech sector, providing companies with unmatched success.
Rise of Mortgage Tech Within the Broader Proptech Sector in Saudi Arabia
Companies like Holo, a prominent player in the digital mortgage sphere, represent the toolmakers whose products have the potential to reshape the economy.
Holo entered the Saudi market with a vision of streamlining the home-buying experience through its comprehensive digital mortgage solutions, and they have been quick to capitalize on the residential boom in the Kingdom. Recently, the company closed a seven-figure seed round that will allow it to accelerate its expansion to Saudi Arabia.
Holo's founder attributes the current property market resurgence to the nation's strategic initiatives, which have opened up many market opportunities for the company. The positive interactions with Saudi banks, government entities, and the central bank licensing teams at SAMA have opened their eyes to the Kingdom's commitment to embracing and integrating proptech innovations.
This positive experience has also been facilitated by AstroLabs, a local market-entry partner that assisted Holo with licensing, visas and banking arrangements.
“As two non-Arabic founders based in the UAE expanding into the Saudi market, the support from AstroLabs was invaluable. They helped us with licensing, visas, and banking arrangements. We collaborated with various members of the AstroLabs team throughout the process, and they consistently provided expert assistance,” said Arran Summerhill, founder of Holo.
Holo’s ability to foster transparency and efficiency in the mortgage process sets a strong precedent for others in the industry.
The impressive strides made by Holo highlight the immense potential within Saudi Arabia's proptech landscape. With the real estate sector expected to see substantial GDP growth and the country’s increasing investments in proptech, new companies entering this dynamic market can anticipate a very fertile environment.
Future opportunities will only expand as the Kingdom continues to advance towards realizing Vision 2030’s objectives. This will fuel advancements in technology and innovation, which not only powers the property sector but also contributes to Saudi Arabia's diversification efforts.
