How Is Technology Advancing The Real Estate Sector

An overview of the use of technology in the real estate sector and examples of technologies currently in use. A focus on Nigeria as a case study, including some of the technologies in use, challenges/suggested areas for development.

The Use of Technology in the Real Estate Sector

Real Estate is an industry going through a profound computerised change. The utilisation of technology has a strong impact in this cycle: from  Customer Relationship Management (CRM) to virtual organising and advanced exchanges. These technologies make property management more helpful: for clients, specialists, and every other person included—accordingly, headways in technology form how realtors and property holders explore the home selling and buying process.

Real estate professionals depend on complex information to drive choices, evaluate home estimation, and track down ideal purchasers in the present world. Staying aware of the times can be troublesome, yet the technology accessible to specialists is a thrilling and advantageous shift. The following are how technology shapes the real estate business and how specialists can acquire an upper hand by remaining informed on the most recent patterns.

Example Technologies In The Real Estate Sector

Custom-Designed and Specialty QR Codes

QR codes have their uses in virtually every industry. It is especially true of Real Estate because QR codes are a fabulous way to display a house. However, if you post an advertisement for a home in a newspaper or billboard, you’re limited to using that ad space; therefore, you can only show a limited number of pictures and display only a certain amount of content. QR codes allow you to maximise your ad space. By placing a QR code in your ad space, you allow a prospective buyer to scan the code and be brought to more photos, information, or even a video of the home. You can give a virtual tour of a house right on someone’s cell phone!

Artificial Intelligence

How might AI real estate technology and chatbots help you? The technology can improve the realtors’ work. It allows them to focus on core tasks as remote helpers can answer quickly and post pertinent inquiries that will them realise the client’s necessities early. Additionally, organisations are executing AI technology to get reliable market estimates and future home estimation forecasts.

Blockchain Technology

While blockchain real estate technology is still in its infancy, it is gradually advancing into the real estate business. Many home dealers presently tolerate bitcoins as an elective instalment choice for high-value property deals. Blockchain technology has permitted individuals to handle critical monetary exchanges, like real estate deals, without delegates like banks. Blockchain technology can bring security, productivity, and straightforwardness to real estate exchanges if wholly used.

Smartsites

Smartsites real estate technology is crucial in the real estate industry. However, most people already know that websites are necessary. Furthermore, content needs to be fluent; that is to say, that should be immutable in no way, shape, or form. So again, it is true of the real estate industry, where new properties must be constantly added to a website, and homes that have been sold removed quickly.

Cloud Integration

Whether you want to renew a rent with a leaseholder or manage an inside business, tasks are more productive using cloud technology for distant closings, electronic record signatures, and different capacities that used to be done face to face.

Real Estate Development Digital Technologies

For completeness, the following are examples of digital technologies for use during property development planning, design, construction, operation and maintenance.

• Building Information Modelling (BIM).
• Maps/Streetview via the internet.
• Geographic Information Systems (GIS) – to review detailed information about the environment.
• 3D inserts on plans to show more complex details, such as service connections and utility interfaces.
• 4D CAD design –detect workspace congestion to identify potential on-site safety hazards
• Drones/unmanned aerial vehicles.
• Augmented and Virtual reality – simulate construction, maintenance and operation activities in a risk-free and realistic environment (digital rehearsals)

Nigerian Real Estate Sector – A Case Study

The Nigerian Real Estate sector grew 1.77% in Q1 2021 from 2.81% in Q4 2020 and -4.75% in Q1 2020 (National Bureau Of Statistics).

The Nigerian real estate industry is one of the most thriving industries, attracting many investments in funding and technological developments. The industry’s tech integration is growing at a pace similar to that of the early Fintech industry, and with this integration comes a new era of real estate management. Technology in real estate is popularly referred to as  ‘Proptech’ or ‘Realtech’, i.e. Property technology or Real estate technology, respectively.

Proptech refers to all the software, tools, websites, apps, and other digital solutions used by real estate professionals to optimise buying, selling, researching, marketing, financing, and other real estate activities (Forbes). Proptech uses modern digital innovation to address the needs of stakeholders-developers, investors, buyers, rentals, and property management companies in the property industry. It also covers smart building technology, space management, and architecture, similar to those discussed above.

Artificial intelligence (AI), virtual reality, big data, and analytics are just a few developments transforming the proptech market to make buying, selling, renting, or managing properties easier. For example;

• Virtual reality and inspection drones allow property owners, purchasers, and investors to see and evaluate a property without physically entering it. It facilitates remote transactions and digital contracting, making the client experience more convenient and efficient.
• Artificial intelligence, through networks of smart devices and sensors (IoT), helps to power the marketing and investment processes
• Data Analytics helps collect information on used and unused properties for better decision-making.

Digital technology in real estate has brought about new opportunities and startups, proffering solutions to some of the industry’s age-long problems in Nigeria. It’s not surprising that you can now buy a four-bedroom terrace building on Jiji.ng (an eCommerce general marketplace). Companies such as ‘Spleet’, ‘Rent small small’, ‘Hutbay’, ‘Fiber’, ‘Mypadi.ng’ and ‘Tolet.com.ng’ are some of the companies in the proptech space. These startups are revolutionising the process of renting, selling and managing landed properties all over Nigeria. Users can now register on online platforms to search for new apartments, rent a short let or service apartment, buy a fully furnished house or landed property and even make financial evaluations of one’s property.

Challenges in the Nigeria Real Estate Sector

With growth similar to that of the Fintech industries, this fast-developing space has challenges, including some.

• Property owners not finding it reasonable or attractive to list their properties on online platforms
• The general notion that procuring or renting properties online is more expensive and non-negotiable.
• The lapses of being unable to properly inspect what you are renting or procuring virtually are proposed to be resolved with drone inspections. Or perhaps virtual reality?
• Tech companies only work fine in urban areas leaving the rural areas out of the market pool.
• Disparity between property owners and online platform owners on the financial evaluation of properties.
• Income, affordability and access to mortgages
• Regulation and enforcement to address construction malpractices that have led to some buildings’ collapse.

Final Words

Research from Agusto & Co shows that in 2020, the GDP of the Nigerian real estate industry was around ₦3.96 trillion, a 9.4% decline compared to the previous year’s ₦4.37 trillion; this was reported to be a residual effect of the pandemic. Furthermore, Nigeria is the most populous country in Africa, with a population growth rate that is not expected to slow shortly, expected to reach 263 million by 2030. Therefore, there is a continuously increasing demand for real estate and infrastructure products and services. It is estimated that Nigeria has a housing deficit of about 20 million housing units as of October 2021.

Given the demand for properties, further growth is anticipated in the sector; therefore a good sector for technological investment and development to solve the housing problems. Tech enthusiasts and operators in this sector are encouraged to explore the example technologies presented in this article, where they are not currently in use, to improve transparency and trust and encourage public participation to advance the Nigeria real estate sector.

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