Proptech, also known as realtech, stands for real estate technology and refers to all software, tools, websites, applications and other digital solutions used by real estate professionals to optimize buying, selling, research , marketing, financing and other real estate activities. .
Technological innovations have facilitated the way things are done in the work-life environment globally. All facets of human activity are increasingly powered by digital technology.
As it is available in various industries, technology also impacts the growth of real estate or the real estate industry in different ways.
The real estate industry was initially slow to embrace digital transformation. However, with its awareness of the contribution of digital technology in other industries, real estate companies are gradually taking advantage of emerging technologies to reform their industry.
Today, the alignment between property management and technology has given rise to the fast-growing global proptech industry.
Proptech, also known as realtech, stands for real estate technology and refers to all software, tools, websites, applications and other digital solutions used by real estate professionals to optimize buying, selling, research , marketing, financing and other real estate activities. .
As stated above, proptech simply refers to the use of technology and software to meet real estate needs. These include those of owners, tenants, investors, brokers, traders, repairers, maintenance crews and property management companies. Proptech also covers smart building technology, space management and architecture.
Implementing proptech tools, processes and strategies helps improve the value and performance of real estate and the entire property management ecosystem.
Artificial intelligence (AI), virtual reality, big data and analytics are some of the trends that are revolutionizing the proptech market to enable buying, selling, renting or managing property.
Virtual reality and inspection drones allow owners, buyers and investors to view or inspect a property without physically entering that property. It enables remote transactions and digital contracts that facilitate and accelerate the customer experience.
The use of artificial intelligence, through networks of smart devices and sensors (IoT), is helping to power marketing and investment processes.
But the lack of transparency is a major anomaly facing the global real estate industry. The introduction of proptech in real estate has increased the demands for sustainable transparency and ethical practices.
In addition, proptech solutions facilitate data collection, paperwork automation and cost reduction, and open more opportunities for business growth, provide more value to all parties and promote quality communication between owners, tenants and real estate agents.
FinTech Global reports that the value of proptech companies was $7.1 billion, following the 2020 plunge due to lockdown across the globe.
Some notable global protech companies are HomeViews (London), Acaboom (London), Ohmyhome (Singapore), Casavo (Milan), McMakler (Berlin) and Knotel (New York). (San Francisco), Divvy (San Francisco) and Homeday (Berlin).
In Nigeria, Fiber, Rumi, Eden Life, Estate Intel, Rent Small Small, Spleet, Property Deal Zone and Yahshud Property Investment are some of the popular players in the proptech industry.
These companies make the real estate industry more accessible by simplifying the process for buyers, sellers, investors and other parties to easily engage. They are now improving services in the field of real estate technology with innovative and effective solutions.
But the lack of transparency is a major anomaly facing the global real estate industry. The introduction of proptech in real estate has increased the demands for sustainable transparency and ethical practices.
Real estate investors, developers and governments at all levels are beginning to recognize the imperative of real estate transparency vis-à-vis the urban environment.
Real estate transparency is an essential ingredient of a well-functioning economy and society, as the industry focuses on one of man’s greatest needs: housing.
Real estate transparency attracts new investment and business activity to a city, helps government and other key stakeholders make smarter infrastructure decisions, and enables sound long-term planning.
Global real estate services company, JLL, defines a transparent real estate market as one in which stakeholders have easy access to high-quality market and performance benchmarks; where there is certainty, consistency and rigorously enforced rules and regulations.
The National Information Technology Development Agency (NITDA) should engage with real estate professional groups, public and private stakeholders to streamline innovative solutions that can be safely deployed to ensure transparency .
In this context, corporate governance standards are strong and real estate transactions are carried out in a fair and ethical manner.
According to JLL Global Real Estate Transparency Index, 2020, London ranks first as the most transparent real estate market in the world. Los Angeles, San Francisco, Sydney and Washington DC complete the top 5.
Surprisingly, the global top 20 includes several second-tier English-speaking small and medium-sized cities like Seattle, Denver, Brisbane and Manchester, with Paris being the most notable non-English speaking city.
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Real estate transparency in Nigeria is lacking due to the activity of charlatans and fraudsters posing as real estate agents in urban centers.
These unscrupulous individuals have used the low digitization of real estate transactions to perpetuate their criminal acts.
Stakeholders such as Real Estate Developers of Nigeria, the Nigerian Institution of Estate Surveyors and Valuers, and others would do the industry a lot of good by encouraging registered businesses to adopt new technologies that digitize their operations.
Apart from efficiency, digitization would ensure the security of digital documents through the deployment of blockchain technology. This will minimize the incident of falsified/false documents being used to defraud customers and landowners, thereby protecting the interests of stakeholders across the industry.
The National Information Technology Development Agency (NITDA) should engage with real estate professional groups, public and private stakeholders to streamline innovative solutions that can be safely deployed to ensure transparency .
With NITDA’s guidance and support, technology developers and innovators would be empowered to give priority attention to creating innovative digital solutions for the emergence of more proptech startups in the country’s real estate sector.
In the long term, the digital transformation of the real estate sector would foster engagement between PropTech and real estate businesses, while providing networking opportunities with real estate professionals and technology investors.
Inyene Ibanga writes from Wuye District, Abuja; email: inyeneibanga@yahoo.com.
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