The importance of technology on Nigeria’s real estste cannot be overemphasized. These recent times, the introduction of modern technology has transformed various industries in the country. With the Nigerian real estate having no exception to new technological advancements, new innovations have largely replaced the traditional paperwork intensive processes, transparency issues and consistent inadequacies and irregularities which were previously encountered within the Nigerian real estate market.
This significant shift and transformation which is largely driven by the fast-paced advancements of modern technology has notably led to the eventual introduction of smart contracts and block chain technology which is gradually reshaping the scope of how most real estate transactions are being conducted nowadays.
This article seeks to explore the functional role technology pays in reshaping the nature and scope of the Nigerian real estate industry, with major highlights into the impacts of technology regarding real estate property transactions, management and accountability.
The fruitful union between real estate and modern technology these recent years is highly evident from the remarkable transformation of the real estate market. This is noticeable with traditional practices that once dominated the property and real estate transactions of the past has now started to give way to the newly, digitised processes which are faster, higher efficient, highly secured and can be easily accessed.
It is very important to conclude that this is not just a major trend that would become obsolete overtime, but rather a revolutionary change that is signalling the awakening of a new era within the Nigerian real estate market.
Before we proceed to the 7 importance of technology on Nigeria’s real estate sector, I will advice you check out our article on How to buy a house in Nigeria – process, budgeting, steps and requirements.
7 importance of technology on Nigeria’s real estate sector.
The implementation of technology into the real estate system in the Nigerian market has been highly beneficial with the following advantages;
- Technology has created an avenue for new opportunities and innovation.
- The introduction of technology has eliminated the old redundancies and inefficiencies of the traditional system
- It has helped to raise matters of important legal and operational considerations for real estate stakeholders
- Basic challenges such as slow registration process, malicious documentation processes, opaque titling of documents has been easily resolved with new technical innovations such as Blockchain, digital payment solutions, smart contracts and geographic information systems thereby restoring transparency and honesty within the real estate industry.
- Online platforms nowadays can be leveraged for digitalized property listings and lease thereby minimising manual processes, saving additional time and costs in the long run.
- These online platform when coupled with modern digital marketing tools can be utilized to enable real estate shareholders to reach a wider market range of potential buyers or investors.
- Data analytics which provide valuable insights into property valuation and performance, market trends, investment opportunities can easily be gotten using modern digitalized tools thereby boosting good, ethical decision making.
With all the aforementioned it’s very easy to see that the advent of technology is highly advantageous to the real estate industry in Nigeria, with new opportunities and exciting challenges created for property owners and investors. Listed below are some of the ways technology is being utilized in the real estate market in the Nigerian industry.
5 Ways technology is utilized in Nigeria’s Real Estate Sector
1. Online property listings
This is one of the most prominent changes now on the rise due to digital technology in the Nigerian real estate industry. It involves the use of digitalized platforms, websites or even applications via the internet to display properties that are available for the market either for sale, rent or lease.
These online property listing sites, such as Travla.xyz usually provide detailed information with necessary photographs attached of the available properties. Some even include tools that allow one to initiate transactions directly on the site while others just provide the details of the property owner or investor whom potential customers can easily contact and meet up with.
Different websites and apps nowadays offer a wide variety of property options for potential customers to browse through based on their preference. This feature has made these online platform and sites referred to by many as ‘digital marketplaces.
On this digital marketplace, property hunting has been made highly convenient with little to no need for physical meetings with the property owner, minimising time and resources wastage.
All thanks to this form of technology, anybody can purchase a property of his choice online from the comfort of his house anywhere you are globally.
2. Virtual property Tours and 3D Visualization
In life, there is a cliché, “seeing is believing”. Modern technology has embraced this cliché by providing new immersive experiences through which prospective clients can inspect landed properties. This is via virtual reality property tours.
These tours utilize highly specialized immersive and visualization techniques to allow prospective clients to view and explore properties remotely via an online network without physically being there. This unique technology allows buyers to have a realistic feel of the space allowing for the buyer to access and inspect the property without physically being at the location.
On these tours the buyers are provided with a 360- degree view of the property, thereby saving the need and costs of multiple people viewings, time and physical visits.
Additionally the recent use of virtual tours has been discovered to accelerate the decision making process of most clients ensuring they promptly secure desirable properties.
3. Use of property management software
Real estate owners and companies in the Nigerian market now have access to advanced property management software. These software are programs that are designed for the automation of certain tasks in such a structured manner that enhances operational efficiency.
These software programs can serve a variety of functions and can be used to automate periodic tasks such as rent collection, maintenance requests and even lease management. The use of these software will help to streamline the scope of the property management process, minimise human error and mishandlings and boost efficiency.
An advantage not also far-fetched is that it improves the satisfaction of the tenant or property user through swift issue resolution as every payment is digitally documented by the software program.
4. Real estate predictive analysis
This involves the use of data analysis tools and algorithms to forecast, analyse and process current real estate market trends which can be property prices, demand and supply rate, rental rates etc to make informed decisions.
Most property investors and stakeholders require this predictive analysis to be able to identify highly profitable areas, calculate property appreciation/depreciation risks and to optimize their investments decisions overall.
From the above mentioned reasons it is easy to deduce that such data or information to be used for this predictive analysis need to be carefully gathered, curated and stored as such data/information is vital for any successful real estate plan.
Using a safe and secure data driven approach will help in one’s real estate journey to mitigate certain risks and maximize valuable returns
5. The advent of smart homes and Internet of things (IoT)
The adoption of IoT technology and smart homes which is now on the rise has ushered in a new era in the country. The smart home and IoT technology has made it possible for homeowners to install digitalized smart devices that allows one to control and monitor various parts of a property remotely.
This includes security systems, temperature and climate control, lighting and a whole lot of other features that can improve and enhance the human living experience.
It is important to note that though these features main purpose is to relieve and improve the living experience of its property owner, it can greatly increase the property valuation at the time of purchase. This means the more the IoT features in the property, the more you’ll have to pay to purchase such property.
Conclusion
While it’s very easy to say that technology brings forth only ground breaking transformations, it also comes with its own fair share of challenges especially in the Nigerian society we find ourselves.
Tasked with cyber security concerns, to evolving law regulations, to the poor infrastructural system and heightened competition amongst most real estate brands, any real estate shareholder who wishes to adapt and fully harness the power of technology in Nigeria has to prepare to embrace the tech movement and jump on the wave of new opportunities within the Nigerian real estate industry.