Saudi Press

Saudi Arabia and the world
Saturday, Apr 20, 2024

Dubai-based firm Realiste eyes Saudi Arabia’s growing market

Dubai-based firm Realiste eyes Saudi Arabia’s growing market

Dubai-based firm Realiste, a personal artificial intelligence assistant for real estate investments has set ambitious growth objectives with Saudi Arabia as a key market.

Founded in December 2021, the company is a proptech startup that develops AI-powered products for real estate investing with market forecasts that extend up to three years.

The company aspires to be the first real estate exchange that can help to identify the most profitable options in the market, allow purchase online within seconds directly from developers, and manage all the purchased assets in one place.

In an exclusive interview with Arab News, Alex Galtsev, founder of Realiste, said the company aims to revolutionize the region’s real estate market with a specific focus on Saudi Arabia.

As one of the fastest growing real estate markets in the world, the Kingdom stands as a key aspect for Galtsev’s strategy, stating that “the target market for Realiste AI in Saudi Arabia includes both secondary and primary real estate markets worth more than $100 billion.”

He went on: “We see more interest in the Saudi market from investors. We expect that whoever buys 10, 20 apartments in Saudi and leaves it for five years, will be able to come back and see them grow by 100, 200 percent over that period.”

The company has already established one foot in the Kingdom’s market after landing a $10 million partnership during the LEAP event last February.

“Realiste recently launched a joint venture in Saudi Arabia, valued at $10 million, with local partners, including Ahmed Alenazi, former CEO of stc Pay. The collaboration will involve local developers and banks in digitizing 13 cities by the end of 2023,” Galtsev stated.

Realiste also raised $500,000 for business development at a valuation of $10 million in Saudi Arabia with local partners. The company aims to digitize both the supply and demand of the property market.


“Expansion (to the Kingdom) has brought us more visibility and allowed us to attract more investors. We will continue establishing ourselves and products on the market throughout the year,” he added.

“Our projections for the Kingdom are around 300 clients by the end of this year,” Galtsev said, adding a projection of 1,300 transactions on the platform in 2023, up from 110 last year. “We are making use of our already well-known AI-driven tools, Index and Portfolio in the Saudi real estate market to attract foreign investors, like in other markets, such as Dubai,” he added.

Index is the end user’s intelligent mobile app that helps to make informed investment decisions, while Portfolio is the management system that enables users to view and modify investment opportunities.

“The ease and convenience these innovative approaches bring to real estate investment is unparalleled, making it a game-changer in the industry,” Galtsev said.

The AI provider currently operates on a positive cash flow with revenue reaching $1 million in Q4 2022 from the Dubai branch and aims to achieve a 30-time increase this year to hit $30 million in 2023.

These goals seem achievable thanks to the Kingdom’s growing market and Realiste’s promising metrics that include annual growth at 100 percent.

“Saudi Arabia is predicted to grow significantly over the next decade as investors are drawn in by the government’s large-scale economic initiatives, such as NEOM. Residential property prices in Riyadh, the country’s capital, have risen by up to 60 percent in the last six months, indicating that the market is already expanding,” Galtsev stated.

He added that the volume of Saudi Arabia’s off-plan transactions was $81 billion last year with less than 1 percent digitized.

“To digitize the market, Realiste has developed key products, including a portfolio of real estate value tracking, market analytics along with the ability to book apartments online, and instant property evaluation,” he added.

“Vision 2030 combined with the increasing demand for housing, has spurred investments in several new futuristic cities,” Galtsev explained, adding: “Allowing foreign investment in Saudi Arabia’s real estate market has the potential to generate multiple positive economic impacts.”

The value of Saudi Arabia’s real estate sector is forecasted to reach $161.3 billion this year, according to data firm Statista.

The market currently generates around 9.4 percent of the Kingdom’s non-oil gross domestic product.

The company operates on a commission-based business model from real estate developers and banks on each transaction.

Realiste managed to secure $5 million in funding from angel investors in its early launch phase, including Russian banks and real estate developers.

As part of its plans, the company aims to raise a $15 million series A funding round this summer.

Realiste has operations in New York, London, and Moscow, as well as Dubai, Riyadh, Abu Dhabi, Bangkok, and Jakarta.

It has secured over 40 contracts with some of the world’s largest banks and developers, and in 2022 was recognized as the leading AI company in the UAE by the Future Innovation Summit.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×