Leveraging technology to drive real estate sector

Home to Central Bank of Oman, the Central Business District (CBD), a one-mile strip in the heart of Muscat, was once decorated with headquarters of the largest financial institutions in the Sultanate. It provided an easy doorway to the shopping centre of Ruwi and the largest schools in Oman still lie within a 5-mile radius of the district. Needless to say, CBD was a real estate developer’s paradise and apart from new constructions, there was little for builders to do.

Fast forward to 2016, oil prices crashed. Rents dropped by a quarter and occupancy rate was at an all time low as institutions began major expenditure rationalisation. Jobs were lost and while the government could retain Omani workers, expats who made up a major chunk of residential tenants, had to go back home. Like many other areas in Oman, the formidable CBD was suddenly no more a developer’s paradise.

The real estate market that had remained stale in offerings to tenants for years, now, required something new to fight the crippling demand free fall and fierce competition due to overcapacity. But how could developers stay competitive in times of low demand?

Facilities like play area, gym, security gates and cleaning services are all suggestions to stand out in the crowd but is that enough? Or is it time for a technology revolution in the real estate sector? I asked Faisal Durrani, Head of Research at Cluttons.