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Fri, Nov 14, 2025 | Jumada al-Awwal 23, 1447 | Fajr 05:15 | DXB 
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Dynamic pricing could boost realtors' revenues in Dubai
Automated dynamic pricing can generate revenue increases of 15 to 25% for hosts of short-term rentals on platforms like Airbnb and Vrbo. One apartment in Dubai saw its monthly revenue jump 83%
Dynamic pricing of properties could boost the revenue of real estate developers by 15-30 per cent while it could increase profitability by 10-20 per cent, according to industry reports. However, the UAE’s real estate developers are yet to deploy dynamic pricing mechanism to boost their sales revenue.
“Based on a review of industry reports and software provider data from 2024, dynamic pricing in real estate, particularly in the short-term rental and multifamily sectors, has been shown to increase revenue by as much as 15 to 30 per cent. Results vary widely depending on the property type, market, and pricing software used,” said a report.
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Dynamic pricing is a strategy and mechanism where businesses set flexible prices for goods or services based on real-time market demand. Also known as surge or time-based pricing, it aims to maximise revenue by adjusting prices according to factors like demand, time, and competition. Common examples include airline tickets and rideshare services, which charge more during peak hours.
How does it work? Algorithms analyse factors like market demand, local events, day of the week, seasonality, and competitor prices to set optimal nightly rates. In high-demand periods like holidays or festivals, prices automatically increase to maximize profit.
Automated dynamic pricing can generate revenue increases of 15 to 25 per cent for hosts of short-term rentals on platforms like Airbnb and Vrbo. One apartment in Dubai saw its monthly revenue jump 83 per cent over its previous long-term rental income by switching to a professionally managed, dynamically priced short-term rental model.
The dynamic pricing market is growing at a projected Compound Annual Growth Rate (CAGR) of 10.1 per cent from $648.53 billion in 2025. More than 1.4 million companies globally use cloud-based pricing engines, showing a 43 per cent rise in adoption since 2021. This growth is driven by the demand for AI-driven price automation and real-time updates across multi-channel e-commerce, logistics, and retail sectors.
In 2024, the UAE real estate market saw significant growth, with total transactions reaching approximately Dh893 billion across Abu Dhabi, Dubai, Sharjah, and Ajman, and over 331,300 transactions. Dubai, in particular, registered a record-breaking Dh761 billion real estate transactions, driven by strong investor confidence and a dynamic economy.
However, DPrice, the world’s first AI-powered dynamic pricing platform built exclusively for real estate developers, now brings dynamic pricing to the UAE’s developer community to maximise revenue from each home they sell.
In project-financed real estate development, every pricing decision directly impacts the developer’s ultimate profit. DPrice exists to maximise this critical bottom line. If deployed properly across the real estate market, DPrice’s dymanic pricing could significantly boost the Dh893 billion worth of real estate transactions through 331,300 transactions recorded last year.
During market downturns, the developer’s share shrinks while bank obligations remain constant. With market estimates suggesting a large number of developers may face operational losses in 2025 worldwide, maximising revenue through intelligent pricing is no longer optional — it’s essential for project viability.
A technology start-up, DPrice is using data analytics and artificial intelligence in dynamic pricing. A data-driven approach, leveraging the latest market insights, ensures property is positioned competitively to attract the right buyers or tenants quickly.
“We are the first AI-powered dynamic pricing platform built exclusively for real estate developers. 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,” Nick Katsan, General Manager of DPrice, says.
Most developers employ pricing strategies that systematically underperform. After selling one unit, developers automatically raise prices on similar units by a predetermined percentage or fixed amount. This mechanical approach ignores actual demand fluctuations. The consequences are severe – such as unsold inventory at escrow account forces developers to inject personal capital for bank settlements, he says.
“Underpricing is another problem that fast-tracks sale, but the company loses substantial potential revenue. Target Sales Velocity Pricing through which Developers set target sales rates (e.g., 15 units per month) and periodically adjust prices to hit these goals. The finance department establishes targets quarterly, semi-annually, or annually. The pricing department reviews rates weekly or monthly. By the time adjustments reach the market, developers are responding to conditions from months ago—not current realities,” says an industry expert. “The fundamental problem is that both approaches lock developers into reactive, backward-looking pricing strategies that miss optimal revenue opportunities.”
DPrice abandons fixed pricing increments and predetermined sales targets entirely. Instead, the platform continuously calculates optimal sales velocity based on current market conditions and predictive analytics; precise pricing that is required to achieve that velocity and maximum profitability within project financing constraints.
Nick Katsan says, “Behind our platform is a world-class team of AI innovators, data scientists, and applied mathematicians — recognised experts from leading European universities with extensive research portfolios. We’ve paired this scientific excellence with deep real estate and development know-how, ensuring our technology delivers measurable business results.
“Our algorithms are grounded in cutting-edge research, including breakthrough work from Columbia University. What was once academic theory is now a powerful, market-ready solution—refined, converted into a scalable product, and already proving its impact.”
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