Over the years, the global real estate sector has seen a flood of investments, with funding for commercial real estate reaching a whopping US 1.3 trillion in 2021 (a 55% increase from 2020). With radical growth comes the need for expansion and sophistication, resulting in a strong alignment between technology and real estate to scale the sector and help leapfrog the barriers impeding industry growth.
PROPTECH refers to property-related technology deployment. It encompasses a wide range of property technologies, including smart home setups, virtual reality, artificial intelligence, big data analytics, asset management software, cloud integration, and various other tools.
Ugo Obi of Tilden Development Limited enlightens us, saying that “the Nigerian real estate industry is one of many to have embraced technology, especially in property evaluation, development of online marketplaces, smart homes, prospecting, and marketing”.
What does the future of tech-real estate integrations in Nigeria look like?
“Here are some tech implementations transforming the Nigerian property industry,” Mr. Obi explains.
1. Property Marketplace Software
The most widespread use of technology in the Nigerian real estate industry is the creation of marketplace software and listing platforms, which allow buyers and sellers to work more efficiently. Before the advent of marketplaces, a person interested in renting, leasing, or purchasing real estate would have to meet with an agent to assess the property.
You can now access thousands of homes, shops, and other businesses with just a few taps on your phone’s screen. These platforms also include chat features that allow buyers and sellers to communicate directly without the interference of a third party.
2. Virtual Property Examination
Virtual property inspection began as a stopgap during the global COVID-19 pandemic and has evolved into an essential and interactive asset in the global real estate market. Inspection is at the top of the priority list when negotiating, leasing, or purchasing a property.
A virtual inspection is a more convenient and cost-effective alternative to traditional methods. It gives clients an immersive experience of the features of a specific home or building without requiring them to spend valuable time and money on physical inspection.
Although a new phenomenon in the Nigerian market, virtual inspections can redefine consumer experiences, increase trust in the ecosystem, and improve the accuracy of property information shared with the audience.
3. Intelligent Home Technology
Smart home technology is also becoming increasingly popular in Nigeria, particularly in luxury residential and commercial spaces. A typical smart home or office includes convenience, remote control, customization, energy efficiency, flexibility, security, and future-proofing. In terms of valuation, it is reasonable to expect a smart home to attract more investment than a traditional home.
Undoubtedly, incorporating technology into real estate development increases the value of any property.
“Although the trend of automation and convenience is still relatively new in Nigeria and slowed by limited access to broadband internet, it is poised to revolutionize the real estate industry in the coming years, and promises that Tilden Development Limited will be at the forefront in ensuring its adoption,” Mr. Obi insists.
