Real estate developers in the UAE could see revenue increases of 15 to 30 per cent by adopting dynamic pricing models, a strategy already proven in the short-term rental market, according to industry data. While the technology has yet to be widely deployed by developers, a new AI-powered platform aims to change that.
DPrice, a tech start-up, has launched what it calls the world’s first AI-powered dynamic pricing platform designed exclusively for real estate developers. The company is now expanding into the Gulf region to introduce its technology to the UAE’s robust property market, which saw transactions worth approximately Dh893 billion in 2024 across Abu Dhabi, Dubai, Sharjah, and Ajman.
Dynamic pricing, also known as surge or time-based pricing, allows businesses to set flexible prices based on real-time market demand. In real estate, algorithms analyse factors like market demand, local events, seasonality, and competitor pricing to determine optimal rates. This model has shown significant success in the short-term rental sector, where automated pricing can boost host revenues by 15 to 25 per cent. In one Dubai case, an apartment’s monthly revenue reportedly jumped 83 per cent after switching from a long-term lease to a dynamically priced short-term rental model.
“We are the first AI-powered dynamic pricing platform built exclusively for real estate developers,” said Nick Katsan, General Manager of DPrice. “Our mission is simple: to help you unlock maximum profitability from every residential project. We are expanding into the Gulf region to partner with forward-thinking developers ready to transform their pricing strategies.”
The company argues that current pricing strategies employed by most developers, such as raising prices by a fixed amount after a sale or setting sales targets on a quarterly basis, are reactive and fail to capture maximum value. These methods often lag behind real-time market conditions, leading to underpricing or unsold inventory.
“The fundamental problem is that both approaches lock developers into reactive, backward-looking pricing strategies that miss optimal revenue opportunities,” an industry expert commented.
DPrice’s platform abandons these fixed models, instead using predictive analytics to continuously calculate the optimal sales velocity and the precise pricing needed to achieve it. The global dynamic pricing market is projected to grow at a compound annual growth rate (CAGR) of 10.1 per cent from its 2025 value of $648.53 billion, reflecting a broader shift towards AI-driven automation in commerce.
With Dubai’s real estate market consistently posting high transaction volumes, including a record-breaking Dh761 billion in 2024, the adoption of such technology could have a significant impact. The trend is particularly relevant for the Dubai off-plan market, where pricing for hundreds of units is set over the project’s lifecycle. Experts project stable growth for the UAE property market, making advanced pricing tools increasingly relevant for maintaining a competitive edge.
The technology behind DPrice is backed by a team of AI specialists, data scientists, and mathematicians, with algorithms grounded in research from institutions including Columbia University.
