-By Danlami Nasir Isah
Technology has now infiltrated all spheres of human endeavours and key sectors of the economy, and the real estate industry is not left alone, as it is also influenced and affected by technology.
The impact of technology on the real estate industry has increased in the past years. In a short period, real estate service providers have realised the impact and effect of technical solutions.
Gradually, technology is disrupting the way real estate has worked in the past.
First, Artificial Intelligence and machine learning has now aided moving data collected into action. This combination helps in making smarter decisions, using pattern recognition. Along with this, artificial intelligence in real estate algorithms, combined with a robust IoT device framework, now facilitates high-quality property management, including better control of power, lighting, and security systems.
For example, in many developed countries and some developing ones, an online real estate marketplace helps its users streamline the home search process, with personalisation powered by AI.
The system determines the expectations of the consumers, and recommends properties accordingly. The search remains no more a result of just the search query, but the overall system.
Secondly, Big Data and real estate agents have now found a way in analysing data to form integral part of real estate strategies. These data are used in predicting trends, opportunities, and strategies for companies. As such, companies can make data-backed decisions.
Thirdly, Blockchain is changing the way for real estate records and information. Blockchain, nowadays, brings down the rate of real estate frauds and increases compliance. Thus, it also leads to minimising tax leaks, and results in better property prices. The use of cryptocurrencies in the real estate industry could also advance more in the last quarter of 2021.
Also, real estate robots, although not popular in Nigeria, are not just beneficial for buyers, but they are also helpful for real estate agents.
Virtual assistants, voice bots, or chatbots help consumers get immediate answers to all their queries in no time. This keeps the communication going, and helps in providing clear solutions. Various proactive property management firms have started to use automated technology, like robots to ensure quick and clear communication between buyers and agents.
Similarly, drones provide efficient and budget-friendly aerial photography that helps create a better and more elaborated virtual experience. Real estate drones make compelling and dynamic images of, otherwise, inaccessible areas. This would lead to better property records, title data that is backed with video proofs. Also, drone images can be used to enhance marketing.
Combined with geolocation, the system will point to the physical position of the chosen property, and be able to visualise parameters such as zone maps, soils, landscapes, and country maps for the determination of the value of the land.
Finally, in the area of automation, so many real estate-related tasks have now become automated. Data scraping, data processing, and other mundane tasks shall be automated to get things done quicker and better.
Marketing automation is already enabling real estate agents to deliver real-time, customised marketing messages to prospective buyers during the sales process. Data scraping and process automation shall become standard in 2021.
Meanwhile, the immediate past Chairman of the Nigerian Institution of Estate Surveyors and Valuers, Lagos State branch, Mr. Adedotun Bamigbola, who spoke at a forum recently entitled, ‘Real estate in 2021: Is it time for some caution, more innovation or opportunities?’, organised by Thinkmint Nigeria, believes that embracing technology is the best way to go.
According to Bamigbola, technologies are limitless; hence, it is possible for the industry to do a catch-up, as stakeholders need to work hard, because the global economy is heading towards deployment of technological innovations.
Bamigbola reinforced the need to mentor young professionals, who are grounded in technology and innovation to effectively play a role in the real estate sector.
He explained that a major challenge was that the economy is government-driven, unlike the western world, where there are free markets.
“Whatever the government does impacts on the private sector. In developed countries, most mortgages are channeled through pension funds, but in Nigeria, mortgage is screwed towards the financial sector.
“We need to have local content in our building material markets. We can’t afford to import materials for building production. Rather, a lot of exports should be happening, so that we could generate foreign exchange.
“There is need for competition in the building materials manufacturing markets – cement, finishing materials, sanitary wares and cables. The construction industry has not witnessed the kind of support other industries benefited from government.
“The industry needs a seamless property registration process, provision of basic infrastructure that reduces cost of building production. Government should partner with professionals to make the sector efficient and effective,” he said.