In the face of ongoing macroeconomic challenges affecting the MENA region and beyond, real estate has emerged as a secure investment choice for many looking to safeguard their finances. Responding to this trend, Ranime El Skaff founded Prop-AI in early 2022, aiming to simplify property ownership and investment, beginning with Dubai.
Prop-AI leverages artificial intelligence to collect and analyze essential data, allowing it to assess fair market values, forecast potential appreciation, and evaluate return on investments (ROI). This data-driven approach empowers buyers to make informed decisions that align with their personal preferences and financial objectives.
El Skaff, who spent a significant portion of her career at McKinsey & Company—one of the world’s leading consulting firms—draws on her extensive financial and analytical expertise to navigate the real estate market. “As a Lebanese woman witnessing the turmoil surrounding our currency, I view real estate as a relatively stable investment,” El Skaff explained in an interview with StartupScene. “It provides a level of comfort and should be straightforward to manage.”
Since officially commencing operations earlier this year, Prop-AI has already doubled the volume of transactions compared to its initial three months. The company has ambitious plans for the future, intending to expand its reach within Dubai and explore new markets next year as part of its global growth strategy.
The Data-Driven Approach
The effectiveness of AI systems is heavily reliant on the quality of data input. Inaccurate or incomplete data can lead to unreliable predictions, undermining the decision-making process for businesses. El Skaff succinctly emphasizes this point: “It’s garbage in, garbage out.”
To combat this issue, Prop-AI prioritizes the use of accurate, comprehensive data, regularly reviewing and updating its information sources. “It’s crucial to avoid poor data in your models,” she stressed. “Quality data is necessary for achieving meaningful results. The process of refining our approach is ongoing; we continuously explore ways to enhance our data interpretation and rectify any discrepancies.”
By utilizing robust data, Prop-AI enables buyers to invest more efficiently and intelligently. Its AI algorithms swiftly process market listings, analyze potential investments, and assign scores based on individual investment criteria, all within seconds. Once suitable properties are identified, the startup’s advisors assist clients with mortgage arrangements, viewing schedules, and navigating the banking inspection process.
Navigating Funding Challenges
Like many startups, securing funding can be challenging, especially amid the venture capital downturn that characterized much of 2023. However, this funding crunch presented Prop-AI with the opportunity to streamline operations and focus on profitability. “We launched the product with a fraction of the capital we might have needed in a different environment,” El Skaff noted. “While it was a significant challenge, it has driven us toward efficiency.”
Despite signs that the funding environment may be improving, the proptech sector faced notable setbacks last year. Investments in MENA’s proptech dropped to $69 million in 2023, down from $101 million the previous year, representing a decline of nearly 32%, according to Wamda. While the number of investors in MENA increased by 30% in the first half of 2024, the region still saw a 34% year-over-year decrease in funding, as reported by Magnitt. E-commerce continued to attract the highest investment, with fintech leading in deal count.
Future Aspirations
To sustain growth and profitability, Prop-AI is actively working to diversify its revenue streams. Currently, the company generates income from buyer broker fees and data monetization. “We are on a path to monetize our data,” El Skaff revealed. “As our data quality improves, it becomes easier to capitalize on it, contributing almost 10% to our revenue.”
In the coming years, Prop-AI plans to integrate international payment options within its platform to further diversify and enhance its revenue potential.
For the time being, El Skaff remains focused on expanding Prop-AI’s footprint in Dubai, increasing its client base, and closing more deals before pursuing new markets next year. “Our goal for next year is to establish a presence in another city or two, either within the region or beyond. We aim to replicate our success in Dubai in new locales,” she concluded.
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