The implications of Proptech on the real estate

brokerage. The case study of the Dubai, United Arab

Emirates

Maxim Talmatchi

MSc Real Estate Investment and Finance

2019 / 2020
 The implications of Proptech on the real estate
brokerage. The case study of the Dubai, United Arab
Emirates

by
Maxim Talmatchi

MSc Real Estate Investment and Finance

Module: School of Energy, Geoscience, Infrastructure and

Society

Dissertation Supervisor: Dr Gina Netto

Word Count: 14,593

A dissertation submitted in partial fulfilment of the requirements for the Degree of

MSc of Real Estate Investment and Finance from Heriot-Watt University

Heriot-Watt University
School of Energy, Geoscience, Infrastructure and Society
9 December 2019
 DECLARATION OF ORIGINALITY

I confirm that I have read and understood the guidelines on plagiarism, that I
understand the meaning of plagiarism and that I may penalised for submitting work
that has been plagiarised.

I confirm that all work will also be submitted electronically and that this can be
checked using the JISK detection service, Turnitin.

I declare that all material presented in the accompanying work is entirely my work
except where explicitly and individually indicated and that all sources used in its
preparation and all quotation are clearly cited.

Date: 9 December 2019

Student ID: H00285376

Word Count: 14,593

iii
 ACKNOLEDGEMENTS

On the vey outset of this dissertation, I would like to extend my sincere and
heartfelt obligation towards all the personages who have helped me in this
endeavour. Without their active guidance, help, cooperation and encouragement,
I would not have made headway in this study.

I would like to express my sincere gratitude and appreciation to my dissertation

supervisor, Dr Gina Netto, for the valuable support, comments and feedback
throughout the entire journey.

I am extremely thankful and pay my gratitude to my wife Mrs. Tatiana Fratea for
her continuous support and love. Furthermore, I would like to thank my younger
brother Mihai Talmatchi for his great support and encouragement.

I also acknowledge with a deep sense of reverence, my gratitude towards my

parents and members of my family, who had always supported me.

At last but not the least gratitude goes to all my friends who directly or indirectly
helped me to complete this study.

Thanking you

Maxim Talmatchi

iv
 ABSTRACT

Proptech has been a “buzzword” in the real estate industry for couple of
years now, involving both - practitioners and academics into an attention-grabbing
debate about the term, its usage and ultimate impact on companies’ bottom line.
This research reveals the case study of Dubai, aspiring to be one of the most “tech-
savvy”, “smart” and developed cities in the world, by involving various local and
international real estate market leaders (brokerage, property valuation,
consultancy, Proptech developer, property developer etc.) in thorough interview
discussions around the implementation of technology, benefits, risks and
regulations around it. Research has shown that multiple companies have adopted
some of these technologies in one way or another, however the government
certainly is leading the role. The legal framework around the use of Proptech has
proved to have a substantial impact on its development. The possible link between
brokerage quality service, Proptech and real estate broker/agent disintermediation
was explored, highlighting the tremendous possibilities for digital platforms as well
as importance of human touch and invaluable advice of a professional broker. This
research contributes to the existing academic literature by providing valuable
insights into a relatively new topic of Proptech in the context of real estate market
of Dubai, an ever developing and growing city.

Keywords: Proptech, Real Estate Brokerage, Dubai, Role of the Broker,

Disintermediation.

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 TABLE OF CONTENTS

TITLE PAGE ……………………………………………………………………………..i

DECLARATION OF ORIGINALITY…………………………………………………...iii

ACKNOLEDGEMENTS………………………………………………………………..iv

ABSTRACT………………………………………………………………………………v

TABLE OF CONTENTS………………………………………………………………..vi

LIST OF TABLES………………………………………………………………………viii

LIST OF FIGURES…………………………………………………………………….viii

LIST OF ACRONYMS………………………………………………………………….ix

1. Chapter I: Introduction……………………………………………………1
2. Chapter II: Literature Review…………………………………………….4
2.1. Evolution and definition of brokerage…………………………………….4
2.2. The role of a traditional real estate broker………………….……………5
2.2.1. Sellers’ perspective…………………………………………………….6
2.2.2. Buyers’ perspective…………………………………………………….6
2.3. Real Estate Technology in the 21st century……………………………...8
2.3.1. Proptech phenomenon – definition and review……………………...8
2.3.1.1. Proptech in the view of academics……………………………9
2.3.1.2. Proptech in the view of practitioners…………………………12
2.3.2. Evolution of Proptech………………………………………………….13
2.3.3. The potential implications of Proptech 3.0 on the real estate
industry……………..……..............................................................15
2.4. Disintermediation – definition and the broad impact on the RE
industry…. …………………………………………………………...…...16
2.4.1. Disintermediation in Real Estate Brokerage……………………….17

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 2.4.2. Digital Real Estate platforms - enablers of disintermediation…….18
2.5. Conclusion………………………………………………………………….21
3. Chapter III: Research Methodology……………………………………22
3.1. Introduction ………………………………………………………………..22
3.2. Research Design…………………………………………………………..23
3.2.1. Layer 1 – Philosophical Stances …………………………………….24
3.2.2. Layer 2 – Research Approach………………………………………...24
3.2.3. Layer 3 – Research Strategy………………………………………….25
3.2.3.1. Case Study……………………………………………………..27
3.2.4. Layer 4 – Research Method ………………………………………….30
3.2.5. Layer 5 – Time Horizons………………………………………………31
3.2.6. Layer 6 – Layer 6 - Sampling technique, Data Collection
Methods & Data Analysis…………..…………………………………32
3.2.6.1. Sampling Technique …………………………………………..32
3.2.6.2. Data Collection Methods ………………...……………………34
3.2.6.3. Data Analysis …………………………………………………..36
3.3. Validity……………………………………………………………………....38
3.4. Reliability……………………………………………………………………38
3.5. Ethical Considerations…………………………………………………….38
3.6. Limitations ………………………………………………………………….39
3.7. Conclusions ………………………………………………………………..39
4. Chapter IV: Research Findings………………………………………...40
4.1. Introduction ………………………………………………………………...40
4.2. Opinions on what Proptech represents …………………………………41
4.3. Opinions on what Proptech 3.0 technologies have been
implemented in Dubai private sector…………………………………….44
4.4. Opinions on what Proptech 3.0 technologies have been
implemented in Dubai government sector……………………………....48
4.5. Opinions on regulations around Proptech and brokerage in Dubai…..51
4.6. Opinions on the quality of real estate brokerage services…………….55

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 4.7. Opinions on possible implications Proptech may
have on real estate brokers’ profession…………………………………58
5. Chapter V: Grounded Theory…………………………………………..63
5.1. Introduction ………………………………………………………………...63
5.2. Grounded Theory…………………………………………………………..65
6. Chapter VI: Conclusions ………………………………………………..69

REFERENCES………………………………………………………………………...72

APPENDIX A…………………………………………………………………………...91

APPENDIX B…………………………………………………………………………...93

APPENDIX C…………………………………………………………………………...95

LIST OF TABLES

Table 1. Research Aim and Objectives……………………………………………...22

Table 2. Differences between deductive, inductive and abductive approaches…25

Table 3. Respondents by organisational roles and seniority………………………32

LIST OF FIGURES

Figure 1. Proptech and Fintech……………………………………………………….9

Figure 2. Real Estate Platforms Map………………………………………………..11

Figure 3. Proptech Evolution ………………………………………………………...14

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Figure 4. “The Onion Research Model”…………………………………………….23

Figure 5. Types of Research Strategy ……………………………………………..26

Figure 6. Dubai dynamic price Index from 2008 till present ……………………..29

Figure 7. Variations of Research Methods…………………………………………31

Figure 8. Conceptual Ordering of General Grounded Theory Methods………...37

Figure 9. Research findings addressing research objectives…………………….41

Figure 10. Word Cloud around Proptech …………………………………………..43

Figure 11. Grounded Theory Framework: Proptech implications on Dubai real

estate market ……………………………………………………………..64

LIST OF ACRONYMS

AR Augmented Reality

DLD Dubai Land Department

IoT Internet of Things

MENA Middle East and North Africa

RE Real Estate

RICS Royal Institution of Chartered Surveyors

UAE United Arab Emirates

SaaS Software as a Service

VR Virtual Reality

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 Chapter I: Introduction

Technology has transformed many aspects of our lives – from how we

communicate with each other, to how we buy things, to the way we work. As more
and more processes are digitalized, many established industries are finding that
the usual way of doing things has been disrupted (JLL, 2018), for instance -
examples of such disruptions – Amazon in logistics, Uber in taxi services, UpWork
in outsourcing (Shaw, 2018).

There is evidence that the real estate market is one of the last asset types to
adopt technological change and the subsequent innovation (Baum, 2017). The
forecasted transformations of the real estate markets, given the recent innovation
in digital technology, are comparable to those of the 17th century (Shaw, 2018).

In recent years, the term Proptech was closely regarded by the Royal Institution
of Chartered Surveyors (RICS) and Big Four accountancy firms. PWC (2018),
KPMG (2018), Deloitte (2018) have admitted that Proptech has become a buzz
term, is on the agenda for many executives and is the greatest breakthrough in
the industry. EY’s (2017) latest report on Proptech has stressed it’s increasing
effect and disruption on the real estate market.

Although the term Proptech is widely used in researches and reports, the industry
did not clearly define the term. KPMG (2018) in their report use and outline
Proptech as the term that covers all technological and digital, hardware and
software innovations relating to the property. JLL (2018) oversees Proptech as a
mix between data analytics, artificial intelligence, the Internet of Things, virtual
reality, blockchain. On the other hand, CB Insights (2016) describes Proptech as
software tools and platforms used by different participants in the real estate
industry, including brokers, investors, real estate focused lenders, property
owners and managers.

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 While some perceive Proptech as a sum and/or mix of software and hardware
technologies that affect the real estate markets, Baum (2017) suggested that
Proptech is only a small part of the wider digital transformation of the property
industry.

Comparing to other markets, Proptech in the MENA Region is poorly researched,

Dubai, being a leader, tech-wise, among all Gulf Countries, is still a fairly new
market. Although, Government supports tech advancements and is committed to
innovation and smart technology (CBRE, 2019). Some examples of Dubai Land
Departments (DLD’s) efforts towards smart technologies in real estate field are:
the initiation of an Investment Map portal that gives investors and businesses
practical information on ongoing real estate investment projects; establishment of
the Trust Account System app, which manages the registration of developers and
their projects; creation and successful implementation of the Ejari system, a lease
application and management app designed to provide flexibility and transparency
to the leasing process (Dakkak, 2017).

As an outcome of government efforts listed above, more than two-thirds of UAE

home buyers are turning to technology to gather information relevant to their
purchases. The recent independent consumer research study into global home
ownership, commissioned by HSBC (2017), suggests that nearly three-quarters
(72%) of UAE buyers search for available properties online, 67% check the value
of their current home, 65% look for information on taxes and regulations, 65%
research where to live, and 64% explore prospective home prices. Although,
based on the research, the level of Proptech use in the UAE is lower than in the
other eight countries, and UAE respondents reported higher levels of stress during
the home-buying journey than their global peers. Therefore, the potential for
Proptech to simplify and improve the home buying experience is the UAE is
significant (HSBC, 2017).

Taking into account the facts mentioned above, the grey area around the
definition of Proptech and its potential implications on the real estate, Shaw (2018)
has encouraged other researchers to study into how exactly Proptech will affect

2
the industry and its verticals (Brokerage and Leasing, Property Management,
Project Development and Investment and Financing; JLL, 2018).

In this way, the fundamental research aim of the study is to explore the
phenomenon of Proptech, its implications on real estate industry and traditional
real estate brokerage in the context of Dubai market. Therefore, the research goals
will be satisfied by addressing the following research objectives:

1. To examine the ambiguity around the term of Proptech by reviewing the

relevant academic and practitioner literature as well as primary data collected;

2. To explore what Proptech 3.0 technologies have been adopted in Dubai real
estate market, including private and government sector;

3. To investigate the Proptech implications on the real estate broker and its
potential disintermediating effect on the profession;

Therefore, the three core concepts have been covered in the literature: the role of
the traditional broker, the Proptech phenomenon and its potential disintermediating
effect.

This study employed an exploratory, qualitative research method based on a

single case-study design that applied semi-structured interviewing data collection
approach. Yin (2003); cited in Saunders et al. (2009), suggested that a case study
embodies a strategy for doing research which involves an investigation of
phenomenon within its narrow real-life context using multiple sources of evidence.
Further, the researcher has used NVivo software to create a grounded theory by
comparing secondary data and primary data, which therefore delivered the
understanding of the research objectives and the research aim.

Hence, this academic study contributes to the knowledge regarding the

Proptech phenomenon and its implications of Proptech on real estate sector, with
an accent on real estate brokerage in particular.

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 Chapter II. Literature Review

Literature Review Chapter aims at critically presenting, discussing and

analysing the role of the traditional real estate broker. Further, it explores the
phenomenon of Proptech and its implications on the needed real estate industry
with a focus on the brokerage sector. In conclusion, this chapter will provide an
analytical review of the disintermediation phenomenon that is argued to be
occurring due to the impact of Proptech on the traditional real estate brokers.

2.1. Evolution and definition of brokerage

Real estate brokerage has its origins in the 19 th century, when land transactions
were made between countries (Montgomery, 2012; Morris, 2010; Kastor, 2004). A
notable example would be the purchase of Alaska, when Secretary of State William
H. Seward, representing the United States, successfully acquired 586,412 square
miles of land for $7.2 million from Russia (Saul, 2018; Sexton, 2014).

Since then, brokerage has considerably changed. Nowadays, brokerage

represents a core vertical in the real estate industry (Ba and Yang, 2018), with a
global revenue of approximately $235,000 billion in 2018 and over 210,000
companies operating worldwide (Statista, 2019). A conventional real estate
brokerage is defined as a firm that employs brokers who offer their ability to bring
together buyers and sellers in facilitating a property exchange (Wiley and
Zumpano, 2008; Hornstein, 2002; Richins et al., 1987).

Moreover, Guttery et al. (2000) determined that brokerage firms exist because
of the information scarcity. This suggests that buyers and sellers depend on
brokers to guide them in the property search as gaining housing market information
is time-consuming and pricey (Zietz and Sirmans, 2011). However, the rise of

4
technology and internet, has brought a change that made property search much
cheaper and easier (Barwick and Wong, 2019; Edelstein and Green, 2018;
Veuger, 2018; Baum, 2017; Wu and Xie, 2015). Moreover, the modern software
allows buyers and sellers connect with each other virtually and eliminate the
middlemen, brokers as such (Rider and Samila, 2019; McLaughlin, 2018; Baum,
2017;).

2.2. The role of a traditional real estate broker

The role of a real estate broker has been critically reviewed by a large number
of scholars (Benefield et al., 2019; Larceneux et al., 2015; Bernheim and Meer,
2008; Levitt and Syverson, 2005; Hendel et al., 2007; Fain, 1995; Fisher and
Sirmans, 1994). Yavas (2007) considers that brokers play a major role and are
involved in almost every phase of a real estate transaction. Seilers’ et al. (2008)
study on the impact of service on real estate brokerage shows that buyers and
sellers appreciate the human touch, such as brokers’ reliability, responsiveness to
their needs, and empathy.

Furthermore, Larceneux et al. (2015), Bernheim and Meer (2008) evidenced

that brokers have two key functions, to provide market information and improve
coordination between parties. These services are rewarded in a form of a
professional fee, that globally varies from 1 to 6 per cent from the selling price and
is conventionally paid by the engaging party (Swanson and Gurke, 2017; Gautier
et al., 2018; Edelstein and Green, 2018; Delcoure and Miller, 2002). Generally, a
real estate broker shall be engaged by only one party, either the seller or the
buyer. Dual representation, as per the Red Book (RICS, 2017), is considered a
conflict of interest and should be avoided. Further, this academic paper will review
the real estate brokers’ added value from seller’s and buyer’s perspectives.

5
 2.2.1. Sellers’ perspective

Sellers theoretically profit from brokers’ services in a variety of ways (Benefield

et al., 2019). The major service provided by the broker is the promotional activity
i.e. open houses, outdoor and online advertisements, circulation of flyers and
personalized recommendation of the property to individual buyers. Furthermore,
brokers support sellers in the negotiation process and advise on the paperwork
and legal documentation (Bernheim and Meer, 2008).

Frequently, brokers provide seller with market information and recommend the
appropriate asking price. However, the views of scholars around the value of real
estate broker are dispersed. A study performed by Bernheim and Meer (2013)
revealed that brokers’ advice on the initial asking price had a negative impact, as
properties sold by brokers achieved prices lower up to 7.7 per cent than the
properties sold without brokers’ involvement. Contrarily, Sklarz et al. (2017)
argued that the lesser price achieved is mainly due to the urgency of the seller
and not the fault of the broker. Lastly, Levitt and Syverson, (2005) and Hendel et
al. (2007) suggested that the use of a broker did not affect significantly either the
selling or the asking prices and led to an accelerated sale.

2.2.2. Buyers’ perspective

Scholars have studied the impact of the real estate brokers, who represent the
buyer, on the property transactions; and, just like the academics who studied the
impact of the real estate brokers, who represent the seller, on the property
transactions – could not find a sound consensus. Although, Baryla and Zumpano
(1995) indicate that buyers have an improved marginal efficiency of search and
higher chances for satisfactory match if the broker is engaged. Hendel et al. (2009)
and Jud (1980) have also mentioned that buyers conducted quicker searches and

6
had an improved possibility of a positive outcome when assisted by a broker.
Further, buying through a broker improves the variety of properties available and
confers buyers with evidence on the quality of properties and the localities in which
they are situated (Hendel et al., 2009). Moreover, brokers often advise buyers on
the sources of mortgage financing and property insurance, in addition to the
assistance with legal documentation (Seiler et al., 2008).

On the opposite side of the spectrum, Zumpano et al. (1996) had proved that
buyers who use brokers do pay more for the purchased property unlike to those
who do not buy through a broker. But their results also indicate that this cohort
have higher incomes and also more likely to use a broker in purchasing their
home.

To summarize, brokers have an important role in real estate brokerage as they

facilitate transactions. By eliminating the broker, sellers and buyers have a
potential to minimize the cost, but would not benefit from a professional advice as
well as the search and sale of a property may take longer. Moreover, sellers and
buyers regard positively the human touch.

However, the technological advancement, including the growing number of tech

companies that target the real estate industry, has a great impact on the traditional
way of property purchase and lease. Several services provided by the broker
could be replaced by digital technologies. Moreover, Frey and Osborne (2013)
have pointed that real estate brokers are the first ones among all real estate
professions on the likelihood list to be automated in future. Further, Miceli et al.
(2007) argued that the two basic functions of real estate brokerage, matching and
bargaining, have been already significantly diminished by the improvements in
information technology. Therefore, it is important to examine the existing property
technology market and its correlation to the traditional approach to brokerage.

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2.3. Real Estate Technology in the 21st century

The 21st century is described as a transnational and post-digital society (Storch

and Ortiz Juarez-Paz, 2018; Carroll, 2013; Grin and Grunwald, 2000) in the
transition to the fourth industrial revolution (UNCTAD, 2019; Hoar et al., 2017;
Schwab, 2016).

The fourth industrial revolution is characterized by several significant shifts in

the way that economic, political and social value is being created, exchanged, and
distributed. These shifts in values are closely associated to the emergence of new
technologies that connect the digital and physical worlds, and they are furthermost
influential when they combine and reinforce one another (Philbeck and Davis,
2019).

Schwab (2016) reflected that the innovative technologies such as the

blockchain, Big Data, artificial intelligence (AI), internet of things (IoT), cloud
computing and software as a service (SaaS), drones and 3D scanning, virtual
reality (VR) and augmented reality (AR) became more integrated in the physical
and social spaces and founded the post-digital society. Even if real estate is
considered a conservative, capital intensive and non-transparent industry (Doelin
and Sante, 2018; Shaw, 2018) it has been already impacted by innovative
technologies, that are often associated with the Proptech.

2.3.1. Proptech phenomenon – definition and review

Proptech is usually referred to various digital platforms and underlying

technologies that have an impact on the real estate industry (JLL, 2018). Despite
being one of the most frequently used words in real estate industry for past five
years, there is a lot of indistinctness around this term (Shaw, 2018; Baum, 2017).
The ambiguity around Proptech definition and its impact on the real estate industry,

8
has led Proptech to be regarded as a phenomenon in both academic and
practitioner literature (Poleć, 2019; Machado, 2019; Macclelland, 2019; Lecamus,
2019; Dyton, 2019). Therefore, this study will further refer Proptech as a
phenomenon.

As aforementioned, Proptech is defined and regarded indistinctively, therefore

more critical analysis is needed to clear the created ambiguity (Doelin and Sante,
2018; Feth and Grunenberg, 2018; Shaw, 2018; Baum, 2017; Lecamus, 2017).

2.3.1.1. Proptech in the view of academics

Unclearness persists amongst academics as well. Baum (2017) regards

Proptech as a part of bigger digital eco-system that interconnects with Fintech. In
his vision, Proptech is divided in three sectors: Smart real estate, Shared economy
and Real estate Fintech (Figure 1).

Figure 1. Proptech and Fintech. Adopted from Baum (2017)

9
Rather than defining Proptech, Baum (2017) reviewed in detail each of the sectors
it comprises.

Smart real estate are digital platforms which facilitate the operation and
management of real estate, therefore making it to be a smart building. A smart
building usually refers to an asset which runs efficiently through automated
technology in its building systems.

From the Shared Economy perspective, technology-based platforms facilitate

the use of real estate assets. It is usually referred to co-working and co-living and
is defined as the share or exchange through peer-to-peer based platforms of real
estate or services related to it. The most notable examples of Shared Economy
platforms are: Airbnb, We-Work and Uber.

Real Estate FinTech describes digital platforms which facilitate the trading of
real estate asset ownership including market research engines, crowdfunding
platforms, debt and mortgage tech platforms, residential and commercial sales,
letting and management engines. Baum (2017) reflected that this technology is
there to take all the offline real estate search and transaction process online.

Shaw (2018) has taken a different approach to define Proptech and deemed
that Baum (2017) has failed to define the same term, noting that dividing Proptech
into discrete market segments seemed muddled and ontologically problematic.
Thus, Shaw (2018) regards Proptech as a sum of digital platforms that interconnect
various real estate stakeholders. Rather than classifying digital real estate
platforms, Shaw (2018) had categorized the stakeholders in four clusters and
portrayed their interrelation facilitated by various Proptech applications (Figure 2).

10
 Figure 2. Real Estate Platforms Map. Adopted from Shaw (2018)

Each circle in the Figure 2 is attributed to a different market stakeholder, the

size of the circle signifies the role of the according stakeholder in real estate
industry. Links between circles represent the digital platforms and the width of each
link indicates the quantity of available digital platforms.

Further, it is clearly observed that Agents (real estate brokers) are not the
dominant stakeholders. Moreover, the link between Home Owners and Residential
Tenants is direct and bypasses the Agents, this means that there are many digital
platforms that connect seller and buyers directly. Although, as the Agents are
connected to both, Home Owners and Residential Tenants, Shaw (2017) suggests
that this connection may diminish with further technology development and its
increasing accessibility.

Finally, Shaw (2017) defines Proptech as a collective term used to define digital
platforms offering technologically innovative products or new business models for
the real estate markets. One thing Shaw (2018) and Baum (2017) regard similarly

11
is that Proptech, in a way or other, represents various digital platforms that impact
real estate industry including brokerage sector.

2.3.1.2. Proptech in the view of practitioners

The term Proptech, its impact on real estate industry is reviewed and
acknowledged to be major, by top-tier consultancy and real estate firms (CBRE,
2018; Deloitte, 2018; KPMG, 2018; JLL, 2018; PwC, 2018; EY, 2017). JLL (2018)
has defined Proptech as a blend of the words property and technology that is used
to create or renovate services offered in real estate (buy, sell, rent, develop, market
and manage property) to a more efficient and effective way.

Proptech has been defined as well by the Royal Institution of Chartered

Surveyors (RICS, 2017) and, similarly, represents a fusion of the words “Property”
and “Technology”, referring to all aspects of technology and how it impacts the built
environment, including software, hardware, materials or manufacturing. Further,
RICS (2017) mentioned that the term Proptech is often misused and the term
refers specifically to the small start-ups that are using technology to address
market problems.

In attempting to summarize the above views of academics and practitioners,

Proptech could represent a sum of digital platforms, software, hardware and
innovative manufacturing materials that are designated to transform real estate
into a more transparent, sustainable, efficient and effective industry and may lead
to major shifts in the way real estate is traded, managed and financed.

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 2.3.2. Evolution of Proptech

The first real estate digital companies emerged long before the term Proptech
appeared and coincided with the popularization of the personal computers. (JLL,
2018; Baum, 2017). Since then Proptech has considerably evolved.

Baum (2017) has categorized its evolution in three waves: Proptech 1.0,
Proptech 2.0 and Proptech 3.0. The first wave, Proptech 1.0 came into sight in the
US and UK in mid-80’s and continued till early 2000s’. The most prominent
technology that has refaced real estate practice was the Excel, it became real
estate essential tool for the organization and analysis of data (Baum, 2017).
Software providing solutions for the analysis and management of commercial real
estate investments, like Argus, Yardi and CoStar, are also associated with
Proptech 1.0. These technologies are generally considered to be closed-form
enterprise services, often requiring significant and expensive customization by the
client.

The transition from Proptech 1.0 to Proptech 2.0 started in early 2000s’ with the
rise of on-line residential market sector. Proptech 2.0 was driven by the broad
access to the internet via Wi-Fi, 3G telephony and personal mobile devices like
phones and tablets. Proptech 2.0 comprises informational dissemination of digital
platforms, Rightmove and Zoopla in the UK and Trulia and Zillow in the US that
are market leaders till date, followed by numerous similar platforms worldwide.
Core technologies of Proptech 2.0 are e-commerce, social networking and open-
source software.

The most recent wave, dated to few years ago, is Proptech 3.0 and is meant to
revolutionize the market by bringing a high level of disruption in the real estate
industry overall (Baum, 2017). Most of the market participants, being still in
Proptech 2.0 phase, are quickly adapting and transitioning to Proptech 3.0 (Ullah
et al., 2018). The following technologies, associated with Proptech 3.0 and
commonly referred as disruptive: blockchain, big data, artificial intelligence (AI),
internet of things (IoT), cloud computing and software as a service (SaaS), drones

13
and 3D scanning, virtual reality (VR) and augmented reality (AR) (Ullah et al.,
2018; Baum, 2017; Shaw, 2018; JLL, 2018). The technologies related to Proptech
3.0 and their impact on the real estate industry will be analysed further in this
dissertation.

A similar view of Proptech development has been proposed by RICS (2017), where
can be observed how various real estate stakeholders digitalise in time (Figure 3).

Figure 3. Proptech Evolution. Adopted from RICS (2017)

RICS (2017) stresses that Proptech and digitisation do not pertain solely to the
purchase of IT software or equipment, but more to the integration of these into
companies’ business processes, changing the way these companies plan, build,
maintain and use the social and economic infrastructure.

Both views can be regarded as a depiction of the same process, from different
perspectives, referring to Proptech and its evolution in time, with respective
implications on the real estate market players.

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2.3.3. The potential implications of Proptech 3.0 on the real estate industry

Being a recent technological wave, the implications of Proptech 3.0 on the real
estate brokerage have not been widely analysed in academic literature. Few
scholars (Ullah et al., 2018; Baum, 2017; Maharg, 2016; Wessels, 2016) have
investigated the consequences of latest property technologies in the developed
economies. There is minimal to no evidence of the presence of innovative real
estate technologies in emerging economies.

The table in the (Appendix A) encompasses a thorough review of Proptech 3.0,

by the researcher, the future of real estate, ultimately summarizing the potential
implications of these technologies on the specific real estate segments, depicting
the possible opportunities and threats.

The opportunities brought by the technologies of Proptech 3.0 are enormous

and they truly have the power to reshape the industry. Artificial Intelligence (AI),
one of the prominent technologies, offers a better customization for buyers and
sellers, has the ability to manage multiple properties and improves customer
interaction (Ullah et al., 2018). Blockchain allows secure and transparent
registration of real estate titles and provides faster turnaround times in property
transactions as well it improves asset liquidity and indivisibility (Wessels, 2016).
Big Data, contributes to reduction of risks associated with property purchase as
well it empowers buyers for better decision-making process while eliminating
further regrets (Mathew et al., 2015). Cloud Computing reduces the IT costs in
organisations (Dawson, 2016). Drones create a greater customer attraction by
offering overhead shots for real estate projects (Kuzma et al., 2017). The Internet
of Things (IoT) keeps users more immersed and connected to the built
environment (Li et al., 2009). Virtual and Augmented reality software and hardware
offers possibilities to visualize real estate by not visiting it physically (Alonzo,
2014). These are only few positive implications of Proptech on the real estate
industry. Other possible implications, the succinct description of each technology

15
and a list of leading organizations efficiently utilizing such technologies is
presented in Appendix A.

While some of the technologies are developed to enhance real estate brokers
activity, others bring disruptive innovation meant to disintermediate traditional
brokers (Yasav, 2015). As evidenced in the Appendix A the impact of the AI and
blockchain on real estate brokerage may lead to the disintermediation of a
traditional broker.

In this way, further in this chapter, this academic research will critically analyse
the disintermediation phenomenon, and its effects on the real estate industry and
brokerage in particular.

2.4. Disintermediation – definition and the broad impact on the RE

industry

Domingo-Ferrer et al. (2017) and Turi et al. (2018) described disintermediation

as a process of reducing the chain of interaction by diminishing or even avoiding
the use of intermediaries between transacting parties. Maharg (2016) has defined
disintermediation as the process when the role of the intermediate is absorbed,
eliminated entirely, or taken over by digital technologies.

Broadly, real estate industry has already faced the impact of disintermediation.
This is represented by the new disruptive business models in: hotel sector
associated with the sharing economy (Airbnb), retail sector associated with
ecommerce (Amazon) and office sector associated with co-working (WeWork);
(van Alstyne et al., 2016; Montgomery et al., 2018; Janasz, 2018).

Airbnb has shaken up the traditional tourism accommodation model by

providing an online marketplace that permits the large-scale rental of spaces from
one ordinary person to another, thus disintermediating major stakeholders in the
tourism industry i.e. travel agencies, hotels, etc. (Guttentag, 2015). Airbnb’s sold

16
roughly 164 million room nights in 2018 (Statista, 2019) and has surpassed the
major hotel chains like Wyndham Hotel Group, Marriot International and Hilton
Worldwide altogether by the number of room nights booked (Guttentag, 2015).

The declining demand for high street retail is often referred as the result of the
growth of e-commerce (Hubbard, 2017). Online retailers like Amazon and Alibaba
have taken over almost every segment of retail from electronics and fashion to
groceries (Berg and Knights, 2019). The convenience of online shopping has led
to a major disintermediation of physical real estate. Over 10,000 retail stores of
various brands, including the well-established ones like Forever 21 and Toys “R”
us, have closed during 2018 and 2019 (Badrinarayan and Becerra, 2019).

Co-working has disrupted traditional occupational office markets and changed

the underwriting performed by lenders, hence disintermediated the conventional
office real estate (Kojo and Nenonen, 2017). Tech-style coworking operators like
Regus and WeWork keep absorbing traditional office as start-ups and the
independent workforce grow and both small and large companies shift into
community workspaces. Although, the recent IPO failure of WeWork, the seventh
largest “unicorn” in the world (Yonghong, 2019), suggests that disruptive
technologies, often promoting disintermediation, may be not sustainable financially
(Love, 2019; Read, 2019).

2.4.1. Disintermediation in Real Estate Brokerage

Disintermediation in real estate brokerage has been regarded as a threat since

the appearance of the internet and the information and communication
technologies (ICTs), in late 90s’ – early 00s’ (Baen and Guttery, 1997; Benjamin
et al., 2002; Aalberts and Townsend, 2002; Crowston et al., 2001; Grover and
Teng, 2001; Muhanna and Wolf, 2002; Zumpano, 2002). However, ever since
technology has advanced immeasurable, Montgomery et al., (2018) suggests that
real estate brokerage model still meets all the criteria of an industry ready for

17
disruption. Being one of the oldest industries in the world, it hasn’t been
significantly restructured or changed in a century and it’s crammed with fees and
large players who are too big to adjust to ever-changing trends in technology (Ba
and Yang, 2018; Harutunian, 2010; Cohen, 2016).

Disintermediation is not only happening due to the technical change of a market

but is also determined by a change in habits amongst buyers (Maharg, 2016). A
research (Yasav, 2015) on impact of digital technology on buyer’s behaviour
suggests that over 30% of respondents have regularly used their mobile phones
to check prices before making a purchase. Moreover, 85% of consumers, most of
them being millennials, stated they have purchased a product after seeing it on
social media. Further, Yasav (2015) indicated that the use of digital technology to
research, browse and purchase has gone from segment-specific to mainstream.
Digital tools have integrated into buyers’ habits, besides the access to full price
transparency, it has led buyers to become much more dependent on technology
and thrive in an integrated online/offline world.

2.4.2. Digital Real Estate platforms - enablers of disintermediation

Similarly, to Baum (2017) and Shaw (2018), RICS (2017) regards digital
platforms as a predominant trend in the real estate industry that has a great impact
on the traditional approach to real estate brokerage.

A research of available tech companies in real estate brokerage has identified

three major groups of digital-platforms/applications that substantially differ in the
way they operate and lead to disintermediation with different effects (Harris, 2019).
These digital platforms fall under Proptech 2.0 and 3.0 (addressed earlier)
respectively. Moreover, with technological advancement, each group has a rising
direct impact on the disintermediation.

18
 One, and the largest group, are the web-sites that advertise properties listed by
the broker, it does not bring disintermediation but in fact represents a handy tool
for a modern broker. Such web-platforms were the first to appear and become
common and popular worldwide, with each country having its market leaders e.g.
Compass.com in the US, zoopla.co.uk in the UK and PropertyFinder.ae in the UAE
(Conway, 2019; Alfaraj, 2019).

Another group, also called as “iBuyers”, has emerged recently in the US, are
the web-platforms that purchase the property directly from the seller, retrofit it and
further, advertise for potential buyers (Moore, 2018). The major benefit that
“iBuyer” firms brought to property sellers lies in the comparatively short liquidation
period, opendoor.com (2019) promises to submit an offer within 48 hours and
transact in 7 days (Opendoor, 2019). This convenience comes at 1 to 1.5 percent
higher cost than what the conventional real estate brokers charge as commission
(Friedman et al., 2017). As evidence of personal research, “iBuyers” mainly
operate in developed, stable and transparent markets, such as the US, UK and
Western Europe, this may be a consequence of their business model that implies
a high level of risk (Moore, 2018). “iBuyer” companies disintermediate conventional
real estate brokers, Although, their core function remains the market knowledge,
although as at the core of their function stays the market knowledge, the backing
of local real estate brokers is required. In other words, “iBuyer” firms will still have
to employ real estate brokers to perform the execution of services and provide
market specific advice. Therefore, “iBuyer” companies represent a combination of
technology and real estate brokerage (Moore, 2018).

The third group are real estate tech companies that have appeared recently with
the target to completely disintermediate conventional brokers (Choi et al., 2019).
They offer similar services and act as an online intermediary between sellers and
buyers. At the core of their business model are lower cost and lower quality of
service provided, representing main features of market disruptors (Ullah et al.,
2018; Bughin and Van Zeebroeck, 2017; Read, 2019). A distinct particularity of
this group is the narrow specialization that doesn’t permit quick penetration to new

19
markets, therefore such companies generally develop in one city or state (Choi et
al., 2019). One such company that stands out is Rex Homes, based in US. It
applies innovative technologies to connect sellers and buyers directly. REX claims
that they can sell homes faster than traditional brokers for a 2 percent fee instead
of the US industry standard of 5-6 percent, saving up to 70% on transactional
costs, when selling a property (REX, 2019; Delcoure and Miller, 2002).
FlyHomes.com is another real estate tech firm that encourages disintermediation
of the conventional brokers. FlyHomes allows buyers to take on-demand tours,
provides market insights, advises on mortgage options and charges a lower fee
than using a traditional real estate broker (Choi et al., 2019; Moore, 2018).

Based on the above evidence it has been noticed that Proptech is prominent in
developed economies. There is less evidence of Proptech being developed in less
mature markets. Moore (2018) has suggested that this may be the consequence
of a poorly regulated market, absence of respective law enforcements, lack of data
transparency and the nonexistence of real estate institutions i.e. RICS.

Digital real estate companies are attempting to disrupt the market by buying or
selling homes online. However, the imperfections and the particularities of the real
estate industry stops such firms from progressing in predominantly non-
transparent, new markets. Fuster et al. (2019) suggests that, as many buyers are
not comfortable engaging only with digital real estate firms, technology will not fully
replace human interaction in the homebuying phase and is likely to coexist with
and complement face-to-face transactions. However, in order to co-exist, the
stakeholders related to real estate brokerage must adapt quickly and embrace new
technologies by changing their business strategy (Chircu and Kauffman, 2000).
Being unable to do so and failing to adapt to new market conditions, traditional
intermediaries are likely to take a significant hit in their revenue and profits leading
to obsolescence of the traditional real estate brokerage in future (Ullah et al., 2018;
Bughin and Van Zeebroeck, 2017; Devaney et al., 2017; Law et al., 2015).

20
2.5. Conclusion

The role of traditional broker has not changed for centuries which makes a
strong case quality of human touch, professional advice regarding the market
knowledge and facilitating transaction process remain an important prerequisite.
However, the rise of digital technologies that affected the real estate industry
overall, has impacted real estate brokerage and the way the business model
operates. With the increased pace of tech companies entering the market, it can
be observed that multiple services, earlier offered by the human, have been
successfully incorporated in digital platforms, taking a significant share.
Furthermore, technologies like AI and blockchain represent a major positive
influence on the real estate industry but, to some extent, threat to the profession.
Likewise, other digital platforms and real estate companies that have adopted
innovative technologies have raised their profit considerably by decreasing the
professional fees, increasing efficiency and transparency of the process. Real
estate companies and particularly real estate brokers have to embrace innovative
technologies in order to not become obsolete.

Digital technologies have tremendously impacted the real estate brokerage in

developed economies, however there is little to no evidence of their presence in
emerging economies, making the disintermediation a phenomenon of the future.

21
 Chapter 3: Research Methodology

3.1. Introduction

Research Methodology Chapter aims to critically discuss and justify the

research philosophy, design, strategy approach, as well as data collection and
analysis method that supported the main research mechanisms, which are
essential in order to address the research aim in an efficient way (Saunders et al.,
2016). Thus, the research aim and objectives are defined below (Table 1):

RESEARCH AIM

To explore the phenomenon of Proptech, its implications on real estate

industry and traditional real estate brokerage in the context of Dubai market

RESEARCH OBJECTIVES

1. To examine the ambiguity around the term of Proptech by reviewing the

relevant academic and practitioner literature as well as primary data collected

2. To explore what Proptech 3.0 technologies have been adopted in Dubai

real estate market, including private and government sector

3. To investigate the Proptech implications on the real estate broker and its
potential disintermediating effect on the profession

Table 1. Research Aim and Objectives

22
 3.2. Research design

In order to address the research aim and objectives it has been decided to follow
the Onion Model (Figure 4), developed by Saunders et al. (2007), which provides
a complex and comprehensive approach to the research design, encompassing
the directional, and logical, relationship between the concepts.

Further, each layer shall be reviewed in the succeeding subheadings of this

chapter, depicting the selection of suitable theories and techniques (highlighted in
red).

Figure 4. The “Onion Research Model”. Adopted from Saunders et al., (2007)

23
 3.2.1. Layer 1 - Philosophical Stances

This study aimed at exploring the phenomenon of Proptech, its implications on

the real estate brokerage and disintermediation of traditional real estate broker.
Thus, the two central philosophical stances, Ontological and Epistemological, are
critically discussed (Ritchie & Lewise, 2003). Firstly, this study widely relies on the
subjectivism research philosophy, from the ontological perspective, perceiving
that social phenomena are created from perceptions and consequent actions of
those social actors concerned with their existence, mainly implying that social
entities need to be perceived as subjective (Dudovskiy, 2016). This stand has been
seen as most relevant considering the approach taken towards in depth
examination of subjective opinions of subject matter experts regarding the
phenomenon. Secondly, the epistemological position is based on interpretivism,
which portrays the readiness to provide means as objective as possible within the
collection, interpretation and presentation of the qualitative data (Saunders et al.,
2009).

3.2.2. Layer 2 – Research Approach

This study has taken an inductive approach as it witnesses and studies the
human actions to collect information and uses this data to figure meaning and
finally, frame a new theory (Anderson, 2008), in the case of this research, generate
more knowledge about the phenomenon of Proptech and explore its implication on
real estate brokerage and potentially, disintermediation. The main characteristics
of an inductive approach are depicted below in Table 2 (in red), confirming the
choice of respective approach.

24
 Table 2. Differences between deductive, inductive and abductive approaches;
adapted from Saunders et al., 2019

3.2.3. Layer 3 - Research Strategy

This study will adhere to the exploratory research strategy by conducting

interviews with ‘experts’ in the subject (Saunders et al., 2009), as it will provide an
opportunity to explore deeply the “Proptech” phenomenon and its implications on
real estate brokerage, thus, answering the research aim and objectives proposed
in this research.

This study adhered to Saunders’ et al. (2009) opinion in respect to the research
strategy that is classified as follows in the Figure 6.

25
 Figure 5. Types of Research Strategy. Adopted from Saunders et al., (2009)

Yin (2003); cited in Saunders et al. (2009), suggested that a case study
embodies a strategy for doing research which involves an investigation of
phenomenon within its narrow real-life context using multiple sources of evidence.
Succeeding the above, this study will investigate the “Proptech” phenomenon in
one market (Dubai), narrowed to a particularly real estate segment (brokerage)
and by utilizing a mono-method research choice.

In order to gather significantly complex insights and contribute to the aim of this
research, it is essential to provide case study details, outlining the macroeconomic
attributes with an emphasis on technological advancement in the real estate
sector.

26
 3.2.3.1. Case Study

Dubai represents one of the seven emirates of United Arab Emirates and is
located along the eastern coast of the Arabian Peninsula, at the southwest corner
of the Arabian Gulf. Dubai background is further portrayed in a concise manner
within the most recent and relevant facts in form of PESTLE analysis:

Political – Dubai's political system has been operating under the framework of
a constitutional monarchy. The political relationship between the seven emirates
developed as a loose federation rather than a centralized system. Each emirate
has its own hereditary ruler and enjoys substantial autonomy (Hasan, 2018);

Economic – Dubai's oil industry has been exhausted and the emirate's
economy is more effectively diversified, with the focus on real estate and tourism
(Haneef and Ansari, 2019);

Social - a total population domiciled and resident in Dubai, in June 2019, are
counted for 3,272,415 hitting a rise by 192,250 compared to the same period in
2018 (Dsc.gov.ae, 2019). Dubai is currently the world's most cosmopolitan city,
with foreign-born residents making up 83% of its population. Its residents come
from more than 200 countries and speak more than 140 different languages
(Abbas, 2018).

Technologic – The Smart Dubai Office was formed in 2015 to oversee Dubai’s
digital transformation and consistently adopt latest technological innovations to
provide more efficient, seamless, safe and personalised city experiences for
residents and visitors (EY, 2019). Furthermore, in 2018 has been launched
Dubaipulse web portal through which all government data become available for
anyone to use, reuse, distribute or share with others without restrictions
(Government.ae., 2019 B).

27
 Legal – The legal system is instituted upon civil law principles and is influenced
by the Islamic Shari’a Law. Dubai has no federal corporate or income tax and
therefore it is often referred as “tax-free heaven”. However, in 2018 has been
implemented a value added tax of 5% on the national level (Kingsley and Heap,
2019). In 2012 UAE has introduced a system of Cyber Laws (Government.ae.,
2019 B). Taqyeem, Dubai’s Real Estate Appraisal Centre part of the Dubai Land
Department have active agreements with the main Valuation standards-setting
bodies worldwide, including the RICS (Dubailand.gov.ae, 2019).

Environmental - rapid economic development has raised environmental

challenges related to the high pace of population growth, an increased demand for
energy and water and the fast-paced urban development accompanied with high
level of GHG and other emissions (Government.ae, 2019).

Dubai represents a dynamic market and various reports regard it as a new world
tech-hub (CompTIA, 2019; EY, 2019).

“Well-developed infrastructure, world class business facilities and

abundant oil resources mean Dubai is a top international smart city with
growing demand for residential real estate.” (RICS, 2017 b)

Dubai has ranked the highest within the MENA Region, on a 45 th place in the
global rank in the IMD Smart City Index (2019).

Dubai Government Authorities have a central role in city development and

affiliation with technology. Dubai Land Department, real estate governing body, is
running various pilots for emerging technologies and have plans to move the
transfers of deed on a Blockchain ledger by 2020 (Veuger, 2018). In addition,
Wolter (2018) has suggested that Dubai Government is promoting sustainable
development and is building the smartest building in the world, totally controlled by
AI.

28
 Despite it being a city on the rise of technological advancement, only 67% of
real estate buyers are checking the web before the purchase, representing a rather
lower figure comparing with developed economies (UK - 93% and US – 83%
respectively; HSBC, 2017).

Dubai real estate market is considered relatively young, the freehold real estate
ownership being announced within a Freehold Decree in 2002 (Dubai Land
Department, 2019). For the past eleven years, Dubai real estate market has been
unstable with highly volatile prices across all asset types (Figure 1).

Figure 6. Dubai dynamic price Index from 2008 till present. Adopted from
PropertyMonitor (2019)

The real estate governing authorities have been actively involved in the
regulation process, by frequently issuing new laws and decrees (Dubai Land
Department, 2019). Furthermore, respective governing authorities have
implemented multiple Proptech applications and web-portals proposed in attempt

29
to improve and stabilise the property prices and other negative implications
(Balakrishnan, 2009).

Considering the above facts, government’s strategy towards a “tech-savvy” city

development and the limited academic research around Proptech, Dubai
represents a curious and strong ground for a case to study around the implications
of Proptech on real estate brokerage.

3.2.4. Layer 4 - Research Method (Data collection)

This research has implemented the mono-method qualitative research in a form

of semi-structured interviews (more details are to be discussed further in 3.2.6),
since it enabled to explore the research phenomenon within its inherent
environment (Lloyd-Jones, 2003; Denzin et al., 2008). Additionally, qualitative
research facilitates the understanding of the participants’ social reality, delivers
valuable insights into complex social phenomena (Bryman and Bell,1988;
Crossley, 2010; Srijumpa et al., 2002; Vanhoof and Mahieu, 2013).

Moreover, qualitative method research is fundamental for exploration

(mentioned previously) of the meanings and perspectives which individuals attach
to definition of “Proptech”, the use of it in real estate brokerage and its potential
disintermediating effect, thus justifying the choice of the respective data collection
method. The difference between the quantitative and qualitative data has been
elucidated in Figure 5, as follows:

30
 Figure 7. Variations of Research Methods. Adapted from Dudovskiy (2016)

3.2.5. Layer 5 - Time Horizons

This research will be conducted within a cross-sectional time horizon, that will
allow to observe and describe the incidence of the “Proptech” phenomenon in a
certain point in time: November 12th to November 26th of 2019. The cross-sectional
time horizon empowers the selected exploratory case study strategy and implies a
short period of time for the data collection (Robson, 2002; cited in Saunders et al.,
(2009).

31
 3.2.6. Layer 6 - Sampling technique, Data Collection Methods & Data
Analysis

3.2.6.1 Sampling Technique

This study applied a non-probability, heterogenous, purposive sampling

technique. Saunders et al. (2009) suggested that this technique is most suitable
for the qualitative exploratory research method as it allows to collect higher-quality
data and devote more time to obtain more difficult to reach respondents.
Furthermore, to elaborate on the research aim and objectives the researcher was
required to undertake an in-depth study of smaller groups selected for a particular
purpose. To explore the aim and objectives of this study, nineteen (19)
respondents were shortlisted, over a period of time, using a professional social
network (LinkedIn) as well as personal connections. A high emphasis was placed
on the professional seniority of respondents and their experience in the field (CEO/
Founder, senior management, associates) in order to explore the phenomenon
from different perspectives i.e. decision makers/ strategy developers, strategy
implementers, executors. The type of establishment was seen important as well,
and during the data collection phase, additional sampling exercises were
performed in order to ensure local and international presence. Table 3 presents
the interviewees, short description of the organisation they take part of, and the
role within it.

Organization Description Role, Seniority Further referred

as

Dubai Real Estate governing Senior Advisor Government

body

32
 US property platform powered UAE Proptech 1
by blockchain, with a Ambassador
representative in UAE

Large regional property portal, Director, Proptech 2

with headquarters in Dubai Research and
Data

Local real estate crowdfunding Founder and Proptech 3

platform CEO

Local Start-up digital platform Founder and Proptech 4

aimed at connecting buyers and CEO
sellers directly

Global tech event company Project Director Proptech 5

American international real CEO, Dubai Broker 1

estate franchise with headquarters Office
in Texas

Worlds’ Top 3 real estate Director, Broker 2

brokerage firm, over 200 years Transaction
history and within Fortune 500 Management, MEA

Large regional advisory firm Partner, Head of Broker 3

Investment and
Commercial
Agency

Local luxury boutique agency Founder and Broker 4

CEO

Local real estate brokerage Senior real Broker 5

estate broker,
MRICS

33
 One of the "Big Four" Director, Real Consultant 1
accounting organizations Estate, MENA

Real estate consultancy, FTSE Director and Consultant 2

250 company and listed on the Head of Dubai
London Stock Exchange Office

Luxury real estate developer CEO Developer 1

Large local real estate Strategy Developer 2

developer Associate

Large regional real estate CIO Developer 3

developer, listed on Dubai
Financial Market

Local property and association Managing Property

management, operating since Director manager
1985

International Asset Valuation Founder and Surveyor 1

and Advisory Firm CEO

Large Regional Valuation and Managing Surveyor 2

Advisory Firm Director and Group
Head

Table 3. Respondents by organizational roles and seniority

3.2.6.2. Data collection methods

The primary data collection method was selected accordingly to Saunders et

al. (2009), that suggested semi-structured interviews as an appropriate source of
primary data suitable for an exploratory case study with a qualitative approach.

34
The semi-structured interviews provide an opportunity to ‘probe’ answers, where
the interviewees need to explain and build on their responses. Another fact
supporting the selected data collection method is fetched by Saunders et al. (2009)
that reflected, in a study where the concern is to understand the meanings that
participants ascribe to a phenomenon, and it is imperative to adopt a qualitative
data collection method.

To generate reliable holistic results in the investigation of the “Proptech”

phenomenon, the interviewed respondents were at the CEO level or in other senior
roles within their organizations.

As the researcher adhered to the grounded theory approach in data analysis

(discussed in details in the next section), constant comparative analysis and
theoretical sampling was performed till data reached a saturation point (Aldiabat
and Le Navenec, 2018; Charmaz, 2006; Glaser and Strauss, 1967). The data
saturation or “theoretical saturation” point (Tay, 2014; cited in Aldiabat and Le
Navenec, 2018), was reached at 19 interviews, reaching both coding saturation
and meaning saturation (Hennink et al., 2016).

According to the constructionist epistemology and the qualitative approach,

most of the interviews were held face-to-face. In multiple interviews, the researcher
was required to give additional questions to explore better the “Proptech”
phenomenon and its’ implications. However, in certain interviews, when the
respondents were naturally reflecting on the forthcoming questions those particular
questions, for logical reasons, were omitted.

The average length of an interview with every respondent was twenty-five (25)
minutes. The majority of the interviews were held in an informal manner. All
interviews were audio recorded on a mobile phone software: “Recorder”, with
respondents’ preliminary written or verbal consent, the latter in the case of the
telephonic interview.

The questionnaire, presented in the Appendix B, consists of ten (10) open and
semi-open questions, designed to reveal entirely the research aim and objectives.

35
An important aspect considered in questionnaire design was suggested by Healey
and Rawlinson (1994), to leave sensitive questions until near the end of the
interview as this would allow time for the participant to build up trust and confidence
in respect to the researcher.

The secondary data sources has been utilised in this research in order to
gather information around the case study (in context of Dubai, in order to provide
a comprehensive approach to data analysis.

3.2.6.3. Data Analysis

NVivo is a query tool that analyses data and detects trends (QSR International,
2012), recommended by various academics (Saunders et al., 2009; Dudovskiy,
2016). This software comprises of multiple analysis tools including features for
investigating unstructured qualitative data (i.e. semi-structured interviews) that
supported the researcher in performing this study. The primary data has been
transcribed, coded into relevant nodes as well as cases and investigated using
open coding, axial coding and selective coding techniques (Charmaz, 2009).
Coding has been performed in several phases, along with constant input of
additional data, adhering to the grounded theory technique of data analysis,
explained further.

36
 Figure 8. Conceptual Ordering of General Grounded Theory Methods, Adopted
from Birks and Mills (2015).

Corbin and Strauss (2008) and Walker and Myrick (2006) have suggested that
a grounded theory technique can be associated solely with qualitative data
analysis, within a case study research strategy. Therefore, based on the examined
data, the researcher has developed a grounded theory/framework that highlights
the connection between the cases, nodes and the emerged trends. The fact that
research around Proptech phenomenon in Dubai is minimal an almost inexistent,
it provides substantial ground for development of new knowledge and theory,
leading to the selection of the above mentioned technique. The grounded theory
framework will be revealed and analysed in the Chapter Five.

37
 3.3. Validity

The analysis of the data collected represents the primary evidence of the
research. The conclusions elaborated regarding the research aim and objectives
have been solely based on the data analysis. In order to decrease descriptive
validity issues, the researcher made use of recordings, precise transcriptions as
well as NVivo software.

3.4. Reliability

Considering that semi-structured interviews might not offer identical reliability as

a structured interview, the researcher made use of recordings, precise
transcriptions as well as NVivo software.

3.5. Ethical Considerations

This study has considered all related ethical concerns as follows:

• The names of participating firms have not been mentioned and have been
anonymized throughout the study;
• Total anonymity of the interviewees has been guaranteed, including name,
nationality, religion and any other personal information;
• Prior to the interview, each participant has read or listened the “Participant
Information Leaflet” and in the cases of face-to-face interviews a “Consent
Form” has been handed out for as signature, as per Heriot-University
standard (attached in the Appendix C);
• The participation in the study was on a voluntary and non-rewarding basis.
• The transcripts and audio recordings in original will be held for six (6)
months from the submission of this study.

38
 • Additionally, some transcripts have been adjusted in an effort to provide
anonymity to the company that interviewees represent.

3.6. Limitations

In order to further elaborate on the subject of this study and gather a holistic
view of the phenomenon occurring within the real estate ecosystem, it would be
beneficial to engage in fruitful discussions with other stakeholders’ types such as
buyers, sellers, academics aside from industry leaders.

3.7. Conclusions

This chapter debated the research methodology within a critical analysis of the
academic literature. All proposed methods used in this research have been
justified. The study was led by the Onion model and adhered to a case-study
strategy within a qualitative multi-method research using an inductive approach
(subjectivism and constructionism as two discrete philosophies) to elaborate on
the proposed aim and objectives. Methods of data collection, analysis and
sampling, as well as research validity, reliability and ethical considerations have
been discussed in detail.

39
 Chapter IV: Research Findings

4.1. Introduction

Previous chapter of this academic research had rigorously analysed the

case study on Dubai, and consequently regarded this alpha city as an attractive
and valuable location for the research of the Proptech and its implications.

Research findings fundamentally focus upon the primary data analysis in order
to address the aim and objectives of this academic study. The following findings
intend to complement the existing body of knowledge regarding the Proptech
phenomenon, its level of adoption within the Dubai market, as well as the potential
implications upon the real estate brokerage profession.

The following findings intend to complement the existing body of knowledge

regarding the Proptech phenomenon, its level of adoption within the Dubai market,
as well as the potential implications upon the real estate brokerage profession.

To maintain and protect the qualitative value of the study, the primary data will
be presented in the form of respondents’ direct citations extracted from the
interview transcripts, and represent interviewees opinions and attitudes
addressing the research questions.

Research findings have been structured and discussed in accordance to their

contribution towards the objectives of this study, as depicted in Figure 3:

40
 • Opinions on regulations
around Proptech and
brokerage in Dubai
• Opinions on what • Opinions on what
Proptech represents Proptech 3.0 technologies
have been already
implemented in Dubai
private and government
sectors;
Objective 2
Objective 1

Objective 3

• Opinions on the quality of

real estate brokerage
services
• Opinions on possible
implications Proptech may
have on real estate
brokers’ profession;

Figure 9. Research findings addressing research objectives

4.2 Opinions on what Proptech represents

In line with the aim of this study – to explore the Proptech phenomenon – it has
been decided to gather all real estate stakeholders’ opinions regarding the
definition of Proptech phenomenon.

The term Proptech, has been regarded differently by various respondents.

However, an emerging pattern has been noticed among the respondents in the
same group, with a strong to minimal awareness of the phenomenon.

41
 A comprehensive view of the Proptech phenomenon was elucidated by the
representatives of Proptech companies, followed by Surveyors, Developers and
Brokers.

“Technology to help consumers with their real estate and property needs. It
represents software, hardware and everything in between” – Proptech 5

“Proptech would be the use of technology to support the real estate industry” –
Surveyor 2

“Proptech (encompasses) the use of technology in the entire spectrum of

property development” – Developer 1

“Technology which influences/ impacts or can be used in the property sector”

- Broker 3

On one hand, several respondents referred to these technologies by implying

on their current and future usage within the field while defining Proptech. On the
other hand, other interviewees provided extremely vague responses.

“Proptech is a word that summarizes all new technologies associated with the
real estate transactions, be it blockchain, AI or IoT” – Proptech 1

“Proptech is any technology that will make our life easier” - Government 1

All respondents have demonstrated an overall positive attitude towards

Proptech.

42
NVivo query on the most frequent words describing Proptech delivered the
following results:

• improve – count: 27
• hardware – count: 19
• quicker – count: 22
• software – count: 31
• assist – count: 21
• service – count: 34

In the below Figure 10 is presented the Word Cloud related to Proptech.

Figure 10. Word Cloud around Proptech. Extracted from NVivo

43
 In conclusion, findings regarding the opinions on what Proptech represents
identified that there is no unanimity among the respondents. Interviewees tend to
comprehend Proptech phenomenon from the perspective of the segment they
operate in. Generally, all respondents had a positive attitude towards the Proptech,
with high hopes for further adoption and improvement within the built sector.

4.3. Opinions on what Proptech 3.0 technologies have been implemented in

Dubai private sector

As observed earlier, many respondents define Proptech through specific

technologies, relevant to their field, alongside with their usage and adoption.
Therefore, it is relevant to further discuss holistically the above phenomenon:

The following technologies have been identified in the Dubai real estate market:

• Cloud Computing and SaaS

• Big Data
• Blockchain
• AI
• VR and AR
• IoT
• Drones and 3D scanning

The above list of technologies is arranged in a decreasing order by its use and is
a subjective perception of interviewees.

All respondents confirmed the use of Cloud computing and shared the view that
other companies may also use it:

44
 “Cloud computing and SaaS, yes probably is the most prevalent then
everything else on this list. – Broker 1

“I presume a number of companies have their own CRM systems etc. and
they're all held in the cloud” – Broker 4

Likewise, Big data, is perceived to be largely utlised, although most of

respondents are using third party service providers to access the big data:

“From the real estate perspective, Big Data, really, doesn't come into it for us
because we use the likes of Property Monitor, ReidIn, to do that for us” –
Consultant 1

Interviewees had opinions that blockchain is rarely used, while most of them
having high hopes about the government introducing this technology for deeds
transfers:

“I think blockchain will come from government perspective, not from private
entities necessarily. I think what blockchain will do is feed and provide trust in
the transaction of properties” – Proptech 3

Artificial Intelligence (AI) is regarded to be developed and utlised by the well-

established Proptech firms. Furthermore, most of the respondents have mentioned
that they haven’t seen much of AI technologies on the market, and the ones they’ve
seen are of a very basic level.

45
 “AI, very little, apart from very basic AI chatbots and other things you don't see
a lot of it” – Broker 1

Further, the same respondent, that has operated in both US and Dubai markets,
has revealed that in the US his company has developed advanced AI technology,
but for certain reasons this technology is not utilised in Dubai.

“In the US, they've actually got an AI, suppose their own version of Siri, which
is really cool … it basically streamlines agents' day. It's like: Hey, … book a
viewing for 123 Sheikh Zayed Rd at 3pm" and then she would just lock all the
parties together and send invites to everyone. But here, none of it” – Broker 1

It has been evidenced that AR and VR technologies are only used by

developers to showcase the off-plan properties. Other stakeholders are not
using VR and AR due to the associated high costs.

“Creating VR experience is costly and impacts the final price of the product.
We tend to create VR for expensive properties where profit margins allow us
to do so” – Developer 3

The internet of things (IoT) is also used mainly by developers. There is

further evidence that IoT is used more efficient and often in Dubai than in more
mature market like the US.

“Dubai actually is far more ahead than the U.S. when it comes to IoT. It's
incredible.” – Proptech 2

None of the respondents are using Drones, however, this technology has been
discussed the most during the interviews. All respondents would be interested in

46
utilising the drones in their operations, although the required set of permissions
are costly and being difficult to obtain.

“There's a lot of people want to do it and get involved with it, but outside
of developers and some of the larger stakeholders it's just too
expensive” – Broker 1

“Drones - No, I mean you can't fly drones in Dubai without a permit is
very difficult to get permits” – Proptech 2

One respondent suggested that the use of drones in commercial real estate
brokerage and valuation is as well unviable.

“It's commercially unviable for us as a surveying firm to use because you

have to obtain permission for every time you want to use the drone and
apply to the relevant authorities and the cost of doing that well exceeds
the fee that we would ever get” – Broker 3

In conclusion, finding regarding Proptech 3.0 in Dubai real estate industry

identified the opinions on what are the most and the least used technologies.
Cloud Computing seems to be the only technology being commonly used,
followed by the Big data, used at a lower scale and by most respondents being
accessed through third party providers. Blockchain technology has been widely
discussed by all respondents, however as a technology, most would usually refer
to the government as the main user. AI, VR and AR, IoT are perceived as
expensive technologies and most respondents said they are not utilising the
technology and haven’t seen others utilising it. Drones are regarded as the only
technology which use is impeded by the governing authorities.

47
4.4. Opinions on what Proptech 3.0 technologies have been implemented in
Dubai government sector

The adoption of Proptech in the government sector has been seen by some
respondents as an important criterion of Proptech adoption in the real estate
market.

“So, government is having a very important role in either being a

bottleneck to Proptech or being a facilitator of it.” – Real estate
developer 3

Several respondents mentioned that government has taken a leading role in

adoption of Proptech, therefore suggesting an example to be followed by private
sector companies:

“I believe that they’re trying very hard to add the advantages of Proptech and
it’s not just Dubai Land Department, it’s also smart Dubai with the Dubai Now
app. They’re adding a lot of new features, like DocuSign and so I mean the
government has the best intention in place to make it a much more better
experience for the brokers as well as the consumers.”- Proptech 2

“They try, from a government perspective they are the most involved in
Proptech, in any real estate market I’ve seen.”- Broker 1

48
 “The issue you have is we have been extremely fortuitous that government has
taken the lead in technology and development in the UAE.” – Real estate
developer 1

“government almost compete with the private sector in the sense that they
launch web portals, valuation apps, their own data apps.” – Broker 3

Most of the respondents had displayed a positive attitude and have mentioned that
the real estate governing body is about to start or is already utilising the blockchain
technology:

“So, whereas the rest of the world is probably somewhat behind, I think in terms
of technology by the government departments, I think they’re way, way, way
ahead” – Developer 1

“Dubai Land Department are trying to be the first and the best in certain areas.
I think there is an announcement coming out in the next six months or so around
the stuff that they are doing the blockchain” – Proptech 5

“The government is going to put things on the blockchain, but anyone else that
says they’re using it, it’s kind of a buzz word.” – Broker 1

Further, the government representative has shared what exact technologies they
have adopted:

49
 “We are utilising AI, Blockchain and Big Data. Other technologies might be less
related to the government sector, therefore there can be seen a lower rate in
implementation” – Government

Few respondents mentioned that despite the evident efforts in Proptech adoption
by the government sector and therefore facilitating it in the private sector, there is
still room for improvement in terms of execution of Proptech strategy overall, best
practices and technology enabling environment.

“So, I feel like we’re still doing it in a traditional way. We would love to have an
ecosystem that supports innovation and Proptech, backed up by government
support in data transparency, developers’ financing etc.”- Government

“I believe that they have their idea of what should be implemented. Sometimes
I think they’ve studied best practices around the world to do that. Other times I
think that decisions have just been made ad hoc with little thought and I think
your execution is incredibly poor.” - Broker 1

In conclusion, the above findings identified that respondents perceive Dubai real
estate governing body to be very pro-active in the Proptech sector. Most
respondents were aware about the up-coming blockchain project and have shown
their positive attitude towards it. Some respondents, including the Government
representative have indicated that there is room for further improvement in regards
to Proptech adoption by governing authorities.

50
 4.5. Opinions on regulations around Proptech and brokerage in Dubai;

Tuning into the above discussion around government’s leading role in

implementation of Proptech in own entities, it is feasible to investigate the extent
to which the Proptech phenomenon is regulated in Dubai’s real estate market.

There has been a rise on the opinion that the legislation around Proptech is still
underdeveloped and few mentioned that it is far from most developed countries:

“Legislation might be lacking sometimes to support some of those things”- Broker

1

“The market in Dubai I think is still being in its infancy stage mainly due to an
absence of a mature legal framework”- Proptech 4

“The real estate brokerage in Dubai lacks governance in many respects. So,
compared to larger, established, mature markets we actually operate in an
unregulated market” - Broker 4

Some respondents implied that Dubai is a unique market, incomparable to some

extent to other economies and extremely hard to regulate:

“I think it is a very complex market to try and facilitate, so many different types of
stakeholders that handle so many different types of assets and everybody's
motivations and everybody's end goals are so different.” – Consultant 2

51
Few respondents commented on the international standards of regulations, the
benefits of RICS compliant market as well as the relative low barriers to brokerage
licensing in Dubai, compared with developed economies:

“In the UK your obligations are maybe a touch more stringent rather than how
business is done here. The obvious one is not taking the fee from both sides. That's
something that you are allowed to do in Dubai by RERA law. In the UK, if

your RICS is regulated it's an absolute no, no. So, there's a few ethical question
marks.” - Broker 5

“So, you get so many people who would say: "Hey this is easy, I've got a thee week
course and I can make a whole lot of money". So, it attracts a whole bunch of
different type of people to the industry.”

Measures taken by the government towards increasing data transparency have

been also suggested by one respondent:

“RERA has come up with like escrow accounts. So, I think I see that there's
a lot

the government is doing to assure transparency” - Developer 3

As an immense part of Proptech overall resonates around data, many respondents

discussed the importance of regulations around data privacy and protection,
mentioning that to a certain degree these are present in Dubai’s real estate
brokerage market, however, with an evident need of further development:

52
 “It's a really hot topic at the moment and there is some data law like Open
Data Law around data dissemination and exchange, cyber law. I expect
there'll be some additional regulation to come in the near future.” – Broker 5

“We fall outside of the new European GDPR regulations and other
international regulations around data. So, we're not quite sure how we should
be treating it. We're aware that it's offense to "cold calls", but is it indeed an
offence to use that telephone number to send them a regular WhatsApp?” -
Broker 4

An increased number of respondents expressed their opinion about the extensive

regulation regarding the use of drones, the obligatory requirements of licensing
and stringent monitoring based on the recent incidents in the air space of Dubai
International Airport:

“The current situation aroused based on couple of incidents in the past,

related to security, when drones disrupted the Dubai Airport operations. This
might be a major cause why the government is reluctant to increase the
usage of drones.” – Government

“Drones have issues with legalities when it comes to the usage of air space.”-
Proptech 3

“(…) it is a security risk here and it has caused chaos at the airport and I
understand why they have that limitation.” – Proptech 1

53
However, one respondent displayed uncertainty and lack of awareness regarding
the regulations surrounding the usage of drones, especially in the residential real
estate brokerage:

“Drones- I love. And we don't use them, it's bizarre. Again, some confusion
here around what's legal, where can you fly them, why can't you fly them,
would I possibly get thrown to jail if I flew in the wrong place, what height I go
to, how do I achieve the license for the drone etc.? And if I'm flying it over
Emirates Hills is that permitted or is that on a flight path or anything else? I
think one of the integration issues around things like drones is a lack of
knowledge.” - Broker 4

Some interviewees imply that government has Proptech facilitation on their

agenda, but its outcomes are yet to be seen, in a longer run:

“I can say there is definitely a will to facilitate Proptech.” - Proptech 1

“On the government level there are initiatives, but again, I'm curious
about the outcome. Because the outcome typically, is not in line with the
idea” – Surveyor 1

In conclusion, this section has revealed the opinions of respondents on how

they perceive the regulations around Proptech and real estate brokerage in Dubai.
Some respondents had concerns regarding the ease of becoming a broker.
However, others have mentioned that such ease is present globally and not just in
Dubai. The opinions around the legislation of Proptech were controversial. Some
respondents said that the market is underregulated, while some said that is

54
overregulated. Most Interviewees perceived government regulations as Proptech
facilitators. The only grey area stemmed is around the use of Drones, most
respondents mentioning the difficulty and cost of obtaining permits for their use.

4.6. Opinions on the quality of real estate brokerage services

Following on the above discussion on the licensing regulations, a high number

of respondents mentioned the quality of the real estate brokerage services in
Dubai. Therefore, this subject proved to be essential while exploring the real estate
brokerage within the context of Proptech implications upon profession. During the
interviews, the respondents have shown concerns regarding the quality of service
of local real estate agencies.

“I see a lot of people who are not happy with the real estate agents” –
Government

“In my dealings with the brokerage system here, it’s not transparent at
all…what I’ve seen in the market, is a lot of people (agents) just trying
their luck” – Proptech 3

In addition to the poor service quality, respondents raised the issue related to the
large number of agents operating within the market.

“(…) there is a multitude of agents, very low-end agents that just say: “Oh
the door is open. Go, help yourself.”” – Consultant 1

55
 “in Dubai there’s a lot of real estate agents that, I would doubt that they
have minimum success to at least keep going” – Surveyor 1

Several respondents suggested that the current environment within the real estate
brokerage is somewhat reasoned by the ease of becoming a real estate broker in
Dubai.

"It's easier to get a broker license than a driving license in Dubai" –

Proptech 3

“The barriers to entry into brokerage are probably too low here, which is
a cause for a bad user experience.” – Broker 3

However, another respondent has mentioned that becoming a broker is generally

easy across the world.

“I mean even in developed ones (markets), because the barrier to entry

to get into brokerage is so low almost everywhere in the world, and the
payday is so high” – Broker 1

Concerns have been raised regarding brokers’ level of education.

“(..) the brokers’ market … is actually participated by brokers who don’t

have the levels of education, knowledge, skill sets, experience” – Broker
4

56
 “I think it’s (Dubai brokerage) still behind from an education point of view”
– Proptech 4

Two interviewees have shown a positive attitude towards the brokers’ level of
service, although, this is the case if only compared to the previous level of service
in real estate.

“The quality of agents across Dubai has improved considerably

compared to where it was at 10 years ago” – Consultant 2

“Anyone used to be a real estate broker long time ago, even the
watchman or the taxi driver” – Government

Several respondents have mentioned that the poor level of brokerage service and
lack of value perceived by the clients may facilitate direct transactions between
buyers and sellers, including by use of Proptech.

“(poor quality of broker services) opens door for Proptech and

opportunities for landlord to direct user deals” – Broker 3

In conclusion, the above section has presented the opinions related to the
quality of brokerage services in Dubai. All respondents have mentioned a poor
service quality in combination with a large number of brokers on the market. Some
respondents have implied that this may be a cause of the simplified process to
become a broker accompanied with potentially high incomes. Some respondents

57
have suggested that the poor level of brokerage services may open the doors for
new digital platforms that connect buyers and sellers.

4.7. Opinions on possible implications Proptech may have on real estate

brokers’ profession

Following the discussions regarding the quality of the brokerage service, the
disintermediation theme has emerged and was even anticipated by some
respondents. Most have acknowledged that this phenomenon is taking place in
more mature markets. As evidenced by the respondents in previous sections in
this chapter, two key factors influencing and leading to a successful
disintermediation process in real estate brokerage are: (1) a poor brokerage
service quality and government support for such technologies, like open data, and
(2) an automated property registration process. The opinions towards the
disintermediation were both controversial and conditional. The government
representative has admitted that an effective platform that connects the buyer and
the seller would be attractive in Dubai Market, however he lately mentioned that a
buyer would still require professional advice.

“People will always need to have someone who guide them through this
process as you aren’t buying a chocolate but 1-million-dirham
investment” – Government

Some Proptech respondents have firmly stated that there is no place at all for the
traditional broker, other Proptech respondents said that brokers play a key role in
the real estate sector and their disintermediation is very unlikely to happen. Such
controversial opinions from one group of stakeholders may be reasoned by the
type of service provided by the respondent.

58
 “Proptech has the ability to just completely wipe them (brokers) out” –
Proptech 5

“(…) individual brokers…have a tailored service, a personal service.

Where is the Proptech is just a screen and it’s you on a cable” –
Proptech 3

Brokers have mentioned that there is a possibility for disintermediation of

traditional broker, although that would be limited to brokers dealing in selected real
estate fields. Most of brokers have mentioned that commercial brokers will unlikely
be disintermediated, as they are a part of a very complex process unlike the
residential brokerage.

“oh yes, there will be disintermediation for sure” – Broker 1

Further in the discussion the same respondent has mentioned:

“on the resale transactions … (and) in the commercial, I think you will
always have brokers involved…they want the broker to do what the word
means – broker a transaction” – Broker 1

Consultant 2 has confirmed that he foresees disintermediation, however not in

Dubai, as the real estate market is highly volatile and this positively impacts the
demand for property advisors.

“I can see it happening (disintermediation)” – Consultant 2

59
Further in the discussion:

“Dubai market has been fairly volatile over the last 10 years and the
guidance and influence of good quality diligent agents in this market are
arguably more valuable than any other” – Consultant 2

Developers had positive attitudes towards disintermediation of traditional broker

and even would hope for such to happen in Dubai. This may be reasoned by the
rising fees developers pay third party brokers for attracting buyers.

“I’d like to see more and more technology being used and a reduction in
the use of the brokers” – Developer 1

“are they providing for me value for their 10 percent or for their 5 percent
- it's a very different thing. Does the skill set match the return to me? –
Developer 1

Surveyors also had debatable opinions in relation to disintermediation of the

brokers and while they would foresee such happening, it wouldn’t affect much the
brokers dealing in the luxury real estate market.

“I think that Dubai will have less estate agent offices a year or five years
from now (due to disintermediation)” – Surveyor 2

Further in the discussion

60
 “the more expensive you get, the more likely it is to remain more human
to human contact” – Surveyor 2

All respondents have mentioned the brokers that will be able to somehow
prove their value, be it by professional advice, great customer service or
innovative sales techniques, will always have a competitive advantage
against technology.

“The only thing that keep anybody in the middle of the service industry
alive, is if they provide value, nothing else” – Proptech 4

Following the disintermediation discussion, most respondents would

consistently argue the role of the modern broker and how this role may
change in future due to technological advancements and development of
Proptech. All the respondents have suggested that brokers would have to
improve both costumer service skills and knowledge in real estate sector.

“brokers need to evolve to create a higher level of service and

touchpoints with their customers, to ensure that they're providing the
best service possible…it’s about their relationship” – Proptech 3

“So, the role of an agent will have to become far more advisory and far
more educational” – Consultancy 2

And finally, to remain competitive, broker would have to embrace technology.

61
 “You will have people who haven't kept up with Proptech, who haven't
invested in the software, haven't invested in the systems that they use
and can't compete with other companies who did” – Property Manager

“technology is changing everything dramatically, and if you don’t get it

you will get left behind” – Developer 3

“At the end of the day, brokers will need to embrace the technology in
order to remain competitive” – Government

The brokers who will be able to provide high level of customer service and/or high
level of professional advise will always have a pace in the real estate sector.

“If an agent is trained properly and is reliable, then Proptech should

never replace him” – Broker 3

In conclusion, the opinions about disintermediation via Proptech have been

proved to be an emerging theme, most of the respondents have confirmed to see
it happening in one form or another. Although, such occurrence is being perceived
as conditional in all the cases. All respondents have affirmed that a professional
advice will always be valued and in demand. However, they have further
mentioned that the agents that are not adding value or adding limited value to
consumers will likely to be replaced by digital platforms. Some had mentioned that
due to fairly easy automation, the brokers in residential leasing and off-plan sales
are likely to be the first ones on the list for disintermediation. Others have said
that brokers in luxury real estate are unlikely to be replaced by technology as their
clients value the customer service and human touch. Stakeholders in brokerage

62
have suggested that commercial real estate agents will also not be
disintermediated due to the complexity of transactions and the high level of advice
required by such clientele. Proptech respondents have mentioned that by far not
all proptech companies are there to disintermediate the broker. Moreover, many
proptech firms have focused their whole business model around brokers’ activity
and the disintermediation of such is not in their interest.

To conclude, the findings of the research provided critical knowledge regarding

the research aim and objectives, which will be further discussed and eventually
satisfied.

Chapter V: Grounded Theory

5.1. Introduction

The Grounded Theory Framework (Figure 11) is an illustration of the

researchers’ subjective view of the Proptech phenomenon and its implications on
Dubai real estate market. The theory has been developed based on the above
presented secondary data, case study and principally from the in-depth, repetitive
data analysis, findings from primary data, gathered by consistent classification and
refinements. Due to the large amount of raw primary data, due to the dissertation
length limitations a part of it has not been included in Chapter 4, Findings. However,
all data has influenced the researcher in the inductive research approach while
developing the grounded theory. It is important to mention again that the primary
data has been collected from a non-probability, heterogeneous, purposive sample
and represents a fully subjective opinion of interviewees. A data saturation point
was reached at 19 interviews

63
 IoT Air Space
Cloud Drones governance
Computing and
SaaS
Proptech
definition and Big Data
Adoption of Data
usage
protection
Proptech in the
RE Market

AI

Adoption of Data use &

Type = Proptech management
firms Proptech in
Government VR and AR
Sector Blockchain
Adoption of
Proptech in
Private sector
RICS
Type = Property Laws’
Laws’ non-compliance
Management Regulations implementation (brokerage)
around Proptech

Type = RE Governance &

Consultancy Quality control
Low barriers
to
Brokerage &
Role of the RE licensing
Type = Surveyor broker Licensing
Limited growth &
development of
RE companies
High
number of
Type = RE Brokerage
Developer companies
Property
Market Impact on RE
volatility industry
Poor
Type = RE training
Brokerage Low quality
Companies Disintermediatio Brokerage
n of RE Broker Services

Supporting Emerged
theme 1 trend
Type =
Thematic Nodes
Stakeholder

Figure 11. Grounded Theory Framework: Proptech implications on Dubai real

estate market. Extracted from NVivo

64
Further, this chapter focuses around answering the aim of the study by presenting
the grounded theory in a narrative format.

5.2. Grounded Theory

Based on the in-depth analysis of the collected primary data, it has been
concluded that Proptech represents an ambiguous term and holds dissimilar
meanings for different market stakeholders, fact that has been evidenced in the
previous chapter as well.

The source of the ambiguity may be the novelty and uniqueness of the term, as
it has been introduced in business communication only few years ago and became
a widely used catchword, however encompassing different meanings. Another
reason for the ambiguity may be the lexicology of the term “Proptech”, as
semantically it is formed of the words “property” and “technology”. Respondents
who were not able to define the term, in most cases would refer to these two words.
However, the academic literature regards “Proptech” as digital platforms in the first
place, while the underlying technologies represent just the tools for such platforms.
A level of ambiguity adds up a frequent association of Proptech with the start-ups
in the real estate digital space. The indistinctiveness around the term may have an
implication on the level of Proptech adoption, as an in-depth understanding of
technology is required before actual financial investments. The impact on the
business’ bottom line can’t be neglected and if there are possible limitations around
Proptech implementation, these have to be critically evaluated. In addition, in order
to assess the impact on the profitability, it is of paramount importance to
understand the benefits and full usability of respective technologies, as well as
ensure the best fit. It can be comprehended that the lack of awareness around the
technological solutions, their possibilities as well as limitations, risks and benefits
play a significant role in the status quo of Proptech adoption in Dubai and real
estate market development at large.

65
 Proptech 3.0 technologies are emergent in Dubai real estate market, whilst all
real estate stakeholders are actively implementing various Proptech solutions in
their operations. While, some are implemented at a lower rate and others like the
Cloud Computing, have been applied in most of the represented entities. One
potential reason for the wide adoption of this trend, may be the relative low cost in
comparison to the added value of data safety and accessibility.

All respondents have acknowledged the importance of Big Data. However, only
larger companies are utilising proprietary Big Data, while smaller companies are
accessing big data through third party applications and platforms, suggesting that
financial investments are required. Some interviewees had opinions that the
government is not sharing the data with the public, and advocated this to be an
impediment for the overall Proptech development. However, the government has
recently launched a complex and comprehensive web portal that provides access
to data from all economic sectors, including the real estate. Moreover, the access
to this portal is free and its presence is well disseminated through online channels.

The respondents have often related Blockchain as a primary Proptech

technology, it may be associated with the press tendency to popularize Blockchain,
especially in the FinTech sector. Many did not know about its purpose,
management and usage in real estate sector while others mentioned that it can be
“crackable”, therefore not recommended for implementation. It can be inferred that
real estate sector might be one of the later adopters of this technology, for valid
reasons.

Artificial Intelligence is perceived to be either absent or undeveloped in Dubai

by many interviewees, contrarily, it is being used efficiently by the larger property
portals and other well-established Proptech firms. A reason for the above
misperception may be the high expectation from the technology and the absence
of knowledge around its implementation and usage in various parts of the
business.

Generally, all respondents had an understanding of all Proptech 3.0

technologies, however, in many cases also having increased expectations. Local

66
Proptech and Brokerage companies have further mentioned that developing
proprietary Proptech platforms is too costly or too risky. Such attitude towards
proprietary Proptech development may be instigated by market uncertainty and
property price volatility.

The key role in Proptech development and implementation plays the

government, which in case of Dubai is facilitating the development of Proptech and
other technologies in general. However, as Proptech 3.0 is relatively new on the
market, the government is mostly reactive in laws’ adoption around it, prohibiting
the use of software or hardware based on the incidents, rather than future impact.
As for all innovations, these aim to carry positive outcomes, however most of the
time, bringing along an element of the unknown, which can be either positive, or
negative. Therefore, the government’s approach in taking this process around
innovation regulations at ease, is reasonable. It is worth to be mentioned that in
case the technology can be harmful to the society, we could see reactive but
prompt actions around governance and regulations. A good example is the use of
drones which have taken the market by storm, and plenty of real estate
stakeholders, especially in the field of brokerage, valuation and property
development, saw a tremendous operational potential. However, the regulations
implemented after the incident of a Drone disrupting airport operations, including
a complex drone licensing, as well as obligatory permits required for every
occasion usage, among few limitations, are restraining the adoption of this
technology in the private sector. The availability of such regulation is positive for
the society, however, there has been detected an increased the lack of awareness
around the regulation around drones that leads to vast underutilisation of the
technology. Generally, there is a persistent confusion among the stakeholders in
the private sector in regards to Proptech regulation. In most of the cases,
stakeholders are aware about restrictions in general, but they do not possess exact
knowledge of the law and end up not using the technology at all. While some
perceive the market as under regulated, others see it as over regulated and a
negative outcome of such government involvement.

67
 A common theme persisted in the discussions is the poor quality of the real
estate brokerage services in the emirate. There may be couple of potential reasons
behind service quality issue, such as: the poor in-house training, eased brokerage
licensing process, RICS non-compliant brokerage, cultural and educational
background of individuals and different levels of standards as well as expectations.
Poor brokerage services in combination with high transaction fees may be the
factors encouraging the rise of Proptech portals with disintermediating business
model. Such portals are likely to appear in transparent markets with access to Big
Data, like Dubai. Therefore, based on the above, Dubai may represent a perfect
location for brokerage disintermediating digital platforms.

Disintermediation of traditional real estate brokers by Proptech portals is treated

cautiously by both academics and interviewees. However, even if
disintermediation occurs, it would fetch positive change. Property market would
become by far more efficient, transparent and agents would have to work harder
to earn their fees and constantly bring value. Simultaneously, unethical and
unprofessional brokers could, most likely, abandon the profession due to its
increased complexity and competitiveness. Therefore, buyers and sellers would
have an assurance that, if they would choose going for a traditional broker, they
will get the best possible service and advice.

Proptech definitely has the opportunity to disrupt the status quo within the real
estate industry including the brokerage profession to its best possible outcomes.
Although, this disruption will also imply a disruptive change of people and their
competencies in the industry leading to increased competition – the most
competitive are to stay and the least competitive are to be disrupted.

68
 Chapter VI. Conclusion

The purpose of this research was to explore the Proptech phenomenon

and its implications on real estate industry and particularly real estate brokerage.
Hence, by conducting a case study in Dubai market and employing a qualitative
data collection methodology interviewing 19 senior real estate professionals, this
study delivered a subjective, yet critically analysed research of the Proptech
phenomenon.

Firstly, Proptech phenomenon has been examined using secondary sources of

data including academic and practitioner literature. These have indicated on the
ambiguity around the definition of the term and how the society perceives it.
Therefore, one of the established objectives was to examine this ambiguity around
the term of Proptech. Primary and secondary data suggested that Proptech is
generally regarded as a positive phenomenon. Academics (Baum, 2017; Shaw,
2018) regard the term as a collective for digital platforms with various purposes in
the real estate sector. However, the interviewees are often relating the term to the
underlying technologies. There is further non-unanimity around the term as
respondents tend to define Proptech from the perspective of their own real estate
segment. Proptech stakeholders have proved the best comprehension of the
phenomena.

The examined literature has further covered how Proptech evolved and what are
the emerging technologies. Baum (2017) has identified three Proptech waves, 1.0;
2.0 and 3.0. Each technology has been critically analysed based on its potential
implication on each of real estate segments, including brokerage. It has been
identified that most of technologies are bringing only positive changes in the built
environment. However, Ullah et al. (2018) suggested that two prominent 3.0
technologies (AI and Blockchain) may lead to potential disintermediating effect in
traditional real estate brokerage. Therefore, the third objective arose, which is to

69
investigate Proptech implications on the real estate broker and the potential
disintermediating effect on the profession.

To examine the implications on the role of the broker, the study has firstly looked
upon the available academic literature around this subject. Has been detected that
brokers have a central role in the real estate cycle. Various academics had argued
that technological revolution (Proptech in real estate) is able to diminish brokers
function. Moreover, the brokerage itself has not changed for over 100 years and
represents one segment ready for disruption. The above has been a second
evidence that the third objective is imperative when exploring the Proptech
phenomenon.

To explore Proptech and disintermediation phenomena has been decided to

adhere to the subjectivist ontology and interpretivist epistemology philosophical
stances. The research has adhered to a case study research strategy. Dubai has
been identified as a curious geo-location to explore the phenomena as the
secondary data pointed that the government is making efforts to digitalise the city
and promotes Proptech.

The interviewees have been selected using a non-probability, heterogenous,

purposive sample technique. The study has targeted respondents in senior roles
within various real estate segments. Out of over 100 approached seniors only
nineteen have accepted to take part in the study. Following the subjectivist
ontology respondents’ opinions have been considered as purely subjective. The
interviews were conducted either face-to-face or by telephonic conversations, all
interviews have been recorded and transcribed. Further, the primary data has been
analysed using NVivo software. Based on the examined data, the researcher has
developed a grounded theory and a framework that highlights the correlation
between the cases, nodes and the emerged trends and supporting themes.

To explore the Proptech implications on real estate industry in the context of Dubai,
it was essential to investigate respondents’ opinions on the following themes:

- what they consider to be proptech;

70
 - what technology they consider to be widely implemented in the real estate
private and government sectors;
- what do they think about the regulations around Proptech and brokerage;
- what is their opinion of the real estate brokerage market and on possible
Proptech implications on it;

All responses are considered as opinions, and presented data cannot be treated
as representative.

The study concludes with a ground theory conceptualised on the objectivity of the
case study and subjectivity of the interviewees. The ground theory has discussed
the potential reasons of ambiguity around the Proptech. It has further drawn the
attention on how the technologies used by the respondents and potential reasons
on why some technologies are widely used and others are not. The grounded
theory then has revealed that AI technology may be often overestimated. Finally,
the theory has connected the dots between two phenomena: Proptech and
disintermediation. Based on the secondary and primary data analysis,
disintermediation in real estate brokerages is more likely to occur in transparent
markets with access to Big Data. Disintermediating proptech platforms may be
efficient in markets where either brokers are widely unprofessional and unethical
or where brokerage professional fees are very high. However, further was
mentioned, the disintermediation of traditional brokers will affect the brokers that
are not providing enough value for the fee they are charging.

To conclude, the research findings within the grounded theory had successfully
satisfied the primary aim of this academic study. Hence, Proptech represents a
positive phenomenon that even if led to disintermediation, by no means would
holistically affect the entire industry, thus affecting only the brokers who provide
poor value to their customers. Fundamentally, Proptech represents a positive
change in the industry – that will definitely be of great benefit to the end-customer.

71
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 Appendix A

Overview and analysis of Proptech 3.0 implications on Real Estate industry

Leading Organizations in
Potential implications on real estate industry
adapting the technology
Technology Brief Description Most Affected
Global Leaders In Real Estate Opportunities Threats Real Estate
Segment
Refers to the performance Amazon; Apple; FlyHomes; AI offers better AI encourages the Brokerage and
of complex and intelligent Banjo; DJI; iProperty Group; customization for buyers- disintermediation of Leasing; Property
functions such as those Facebook; Property Guru; sellers, predictive analytics, the traditional Management
Artificial done by the human brain Google; Intel; Purple Bricks; ability to manage multiple agents (JLL, 2018)
Intelligence but with computers and Microsoft; Nvidia NestAway; properties and customer (Omohundro, 2014;
(AI) intelligent programs and (Botha, 2019) NoBroker; Rex interactions as well as Ullah et al ., 2018;
minimal human (JLL, 2018) automation for agents RICS, 2017; Baum,
intervention (Rossini, 2000) (Ullah et al ., 2018) 2017)

Represents a combination Bank of Dubai Land Blockchain alows secure Blochchain Brokerage and
betwen elements: America; British Department; and transparent registration ecourages ther Leasing; Real
a) a shared and Airways; FedEx; International process of real estate titles, disintermediation of Estate Investment
distributed ledger with IBM; Maersk; Blockchain Real simplifies the complexity of the traditional and Financing;
synchronized data spread Mastercard; Estate transactions and the due agents and Property
across multiple sites; Microsoft; UPS; Association diligence process, structural surveyors Management
Blockchain
b) cryptography- a digital Walmart; (IBREA); Propy; provides faster turnaround (Baum, 2017; (JLL, 2018)
token with monetary value (Toshendra, Rex; Ubitquity; times of transactions and Maharg, 2016;
(Veuger, 2018) 2018; Krauth, Velox.re; (Baum, brings more liquidity Wessels, 2016)
2018) 2018; Veuger, (Wessels, 2016)
2018)

Represents a collective Amazon; EMC; Realestate.com.au

The efficient utilisation of The inability to Brokerage and
term for large interrelated Google; HP ; Realtor; Trulia;
Big Data contributes adapt to Big Data Leasing; Real
databases and the Enterprise; IBM; Zillow; Opendoor
towards risk reduction, may lead to Estate
associated process for Microsoft; (Ullah et al., 2018)
improves customers' obsolescence (Ullah Development;
extracting useful Oracle; SAP; engagement and alows for et al ., 2018; Baum, Real Estate
knowledge from the digital Splunk; detailed and precise 2017; RICS, 2017) Investment and
Big Data
data stream (Winson- Teradata; appraisals (Mathew et al . Financing; (Baum,
Geideman and Krause, Vmware (Scott- 2015). Furthermore, it 2017)
2016) Briggs, 2019) empowers buyers for better
decision making while
eliminating regrets (Ullah
et al., 2018)
Are regarded as the on- Amazon Web FlowFact AG; Cloud Computing The inability to Brokerage and
demand availability of Services; Immoware24; increases the scalability, adapt to Cloud Leasing; Property
computer system Dropbox; MaklerManager; flexibility and device Computing and Management;
Cloud resources, especially data Google Cloud Onventis; integration while reducing SaaS may lead to (Mladenow et al.,
Computing storage and computing Platform; IBM PropertyBase; IT costs for an organisation obsolescence (Ullah 2015)
power, available over the Cloud; Microsoft RealSpace (Ullah (Dawson, 2016). SaaS et al ., 2018; Baum,
and
Internet without direct Azure; Oracle et al., 2018) helps Integration of huge, 2017; RICS, 2017)
Software as
active management by the Cloud; multifamily organizations
a Service
user (Li et al., 2009) Salesforce; across portfolios through
(SaaS)
(JLL, 2018) the networking of different
property management
(Ullah et al., 2018)

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 Overview and analysis of Proptech 3.0 implications on Real Estate industry
(Continued)

Leading Organizations in
Potential implications on real estate industry
adapting the technology
Technology Brief Description Most Affected
Global Leaders In Real Estate Opportunities Threats Real Estate
Segment
Drones are highly accurate Drones: DJI; Drones: Drone2; Drones used in real estate The inability to apply Drones:
unmanned aerial vehicles Hubsan; Parrot; KnightPrank UK; create greater customer these technologies Brokerage and
that are controlled by Uvify; Yuneec Phantom3; attraction (Kuzma et al. may lead Leasing.
remote control or a ground (Feist, 2019). Skylark. 3D 2017); 3D scanned companies to 3D Scanners:
Drones and control station (Kuzma et 3D Scanners: Scanners: Leica drawings provide a realistic obsolescence in the Property
al., 2017); Ametek; Faro; Nova Multistation view of a property's layout future. There is no Management;
3D
3D hand-held scanners Maptek; MS60; Mobile and design, allowing evidence of Real Estate
Scanning
are used in real estate and TopCon LIDAR; Riegl consumers to plan any potential losses of Development
construction to produce as- (Technavio, LMS-Z210 3D; changes, renovations or drones or 3D (RICS, 2017)
built drawings (Sepasgozar 2019) Trimble SX10 additions (Mahdjoubi et al., scanners usage
et al ., 2016) (Ullah et al ., 2018) 2013) (Ullah et al., 2018)

IoT represents a novel Alibaba; Aquanta; IoT allows understanding The inability to apply Property
internet-based paradigm Amazon Web HouseCanary; and reacting to an this technology may Development;
that connects a variety of Services; Boch; Nest; Salesforce;
occupant's behaviour, lead companies to Property
things or objects around us Cisco; Dell; SiteWatch proactive repair and obsolescence in the Management
through wireless or wired Google; Huawei; (Darafsheh, 2018)
maintenance, linking future. There is no (CBRE, 2018)
technologies for attaining Microsoft; security systems to evidence of
Internet of desired goals (Yang, 2014) Oracle; smartphones, digitize potential losses of
Things (IoT) Samsung logistics management, IoT usage (Ullah et
(Computerworld, push notifications that al., 2018)
2019) enhance security. IoT
keeps users more
immersed and connected
to the environment (Li et
al., 2009)
VR is concerned with Apple; ArX Solutions; AR and VR offers time The inability to apply Brokerage and
creating virtual worlds Facebook; Common Floor savings, global buying and these technologies Leasing (JLL,
without referencing the real Google; HTC; Retina; Matteport; selling, tackling intangibility, may lead 2018)
world; Nextvr; Niantic; Roomy; Virtual and narrowing the interest companies to
Virtual AR is about augmenting or Nvidia; Xperience; pool for buyers. Further, obsolescence in the
Reality (VR) adding to the real world, Samsung; Snap; Vuforia (Ullah et opportunities include virtual future. There is no
and thus creating a blend of Sony; Wevr al ., 2018) property showcases, evidence of
Alternative real life and digital reality (Terdiman, 2017) guided visits, interactive potential losses of
Reality (AR) (Ullah et al ., 2018) visits, virtual VR and AR usage
staging,architectural (Ullah et al., 2018)
visualization and virtual
commerce (Alonzo, 2014)

Source: Synthesised by the researcher

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 Appendix B: Questionnaire

1. How would you assess the maturity/development of real estate brokerage

in Dubai in comparison with developed economies (ex: US, UK and
Europe)?

2. How would you define proptech?

3. What do you consider to be the role of the respective Government entities

in the development of proptech in Dubai and in real estate brokerage in
particular? Is the process facilitated/enabled or impeded? Why do you
consider so?

4. Do you consider that Dubai market is fully integrating the following

technologies:
a) AI
b) Blockchain
c) Big data
d) Cloud Computing and SaaS
e) Drones and 3D scanning
f) IoT
g) VR and AR

5. Has your establishment adopted any of the above technologies? If yes,

which ones? How?

6. What are the implications of proptech on RE brokerage?

93
7. Do you think there might be a possible negative impact of Proptech on the
RE brokerage? Please exemplify/ expand.

8. Do you foresee a link between proptech and disintermediation in traditional

real estate brokerage?

9. How do you see the brokerage profession to evolve in the future, taking
into account technological advancement?

10. How do you consider, are real estate buyers in Dubai ready to substitute
the traditional broker with a transaction enabling digital platform? Why?

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 Appendix C: Participation Leaflet and Consent Form

Participant Information Leaflet

Study Title: "The implications of Proptech on the real estate brokerage. A

case study of Dubai market.”

Investigator: Maxim Talmatchi

1. Introduction

You are invited to take part in a research study which will be conducted at Dubai,
United Arab Emirates in November 2019.

Before you decide to take part, it is important you understand why the research is being
done and what taking part will involve.

Please take your time to read the following information carefully. Take your time and
decide whether you want to take part.

Part One tells you the purpose of the study and what will happen if you take part.

Part Two gives you more detailed information about the conduct of the study.

95
 1. Part One

1.1. What is the study about?

The aim of this study is to examine the phenomenon of “Proptech”, its effect on
real estate industry and traditional real estate brokerage in particular. One objective of
this research is to study the ambiguity around the term of “Proptech” using both primary
and secondary sources. Another objective is to investigate the link between “Proptech”
and its effect of disintermediation of traditional real estate brokers.

1.2. Why have I been invited?

To clarify the abovementioned objectives as well as establish the maturity of

“Proptech” in Dubai, will be held interviews with the major real estate stakeholders i.e.
Real Estate Government Institutions, property developers, “Proptech” firms, real estate
advisory and brokerage companies, property surveyors and RICS members.

1.3. You do not have to take part

It is up to you to decide whether you want to take part.

If you take part, you are free to stop taking part in the study at any time without giving a
reason, and this will not affect you or your circumstances in any way. You can decline a
further contact with the staff of the study. You can request all your information to be
removed from the study.

2. Part Two

2.1. Who is organising and funding the study?

The investigator is organising and funding the study.

2.2. Will my taking part be kept confidential?

96
 Consent Form

Study Title: "The implications of Proptech on the real estate brokerage. A case
study of Dubai market.”

Investigator: Maxim Talmatchi

Participant Identification Number: No ___

Please tick the boxes you agree with.

All three are necessary to participate.

1. I confirm that I have read and understand the participant information leaflet
for the project named above. I have had the opportunity to consider the
information and ask questions and have had these answered satisfactorily.

2. I understand that my participation is voluntary and that I am free to

withdraw at any time without giving any reason, without my employment,
social or legal rights being affected.

3. I agree for information I provide to be used in an anonymised format and

presented as a part of reports and presentations.

4. I agree to take part in the above study.

97