PropTech, or property technology, is gaining traction across the MENA (Middle East and North Africa) region’s real estate sector, with an increasing number of startups entering the space to modernize and digitize the industry. Despite significant market opportunities, these startups face unique challenges that limit innovation and competition.

One major hurdle is securing early-stage funding, and another is limited access to essential data, as established players are often reluctant to share information with newcomers, making collaboration between startups and established firms difficult. The property listing sector, however, is considered a safer and more accepted entry point for stakeholders and investors alike.

In 2022, PropTech investment in MENA peaked at $101 million across 30 deals, representing 2.6% of total startup funding, according to Wamda Research Lab. However, funding dropped by nearly 32% in 2023, with 19 startups raising $69 million. Saudi Arabia, the UAE, and Egypt are the leading destinations for VC-funded PropTechs, with listing and search services as the top-funded categories, followed by property management, vacation rentals, and "rent now, pay later" financing.

Property Listings as a Disrupted Area

Sales marketplaces are the most popular and disrupted segment in PropTech; around 60% of active PropTechs in the region operate as property listing platforms. Building a successful listing portal requires ongoing funding for data collection, which is challenging for early-stage startups. The listing space is dominated by a few well-funded players with a strong presence in multiple countries, including Bayut, Dubizzle (acquired by EMPG), and Property Finder, as well as localized platforms like Aqar in Saudi Arabia.

These leading companies have accumulated extensive user bases over the years, pioneering digital property listings and establishing a strong reputation in the early 2000s. In recent years, new PropTechs have emerged to target niche markets, such as vacation rentals, coworking spaces, and reverse search listing services.

To stand out from larger platforms, some startups add additional services to their listing platforms to improve profitability and ensure long-term financial stability.

Challenges in an Uneven Playing Field

In regions where these major players operate, new listing startups often face an uneven playing field. For example, Egypt-based Boyot started as a listing platform but pivoted to facility management due to the high costs of running a listing service. This shift led Boyot to develop solutions for rent collection using fintech tools. Isqan, another Egyptian PropTech, also faced difficulties; high burn rates and competition led its founders to shut down the listing platform and shift to a traditional brokerage model.

Growing Demand for Listing Services

The demand for data visibility in real estate is driving the focus on property listings, particularly in emerging markets like Jordan, where property-focused listing portals are limited. Jordanian entrepreneur Ahmed Nawasrah founded Khareta to help buyers and sellers make quick, data-driven decisions. Similarly, Iraq is experiencing increased interest in PropTech as population growth drives demand for more housing. Startups like Erbil-based Homele aim to bridge the gap by providing property listings along with connections to local home service providers.

A Potential Turning Point

In a more developed PropTech ecosystem, innovation will expand beyond buying, renting, and selling, as founders and investors explore new business models to address complex industry needs. Property management SaaS solutions are one example. Positive regulatory changes, particularly in Saudi Arabia, also support this momentum. Additionally, there is growing demand among developers for operational efficiency, which could drive interest in more specialized PropTech solutions, such as construction technology.