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Is Technology The Boom To Real Estate’s Full Recovery?

Blog / Mar. 18th, 2019

They say “Technology is the simple bridge between developers, agents, and tenants.” Well, not everyone knows that.

Now that we are well into 2019 let’s take a step back to look at the Real Estate sector in 2018.

Last year, a lot of people would say that the real estate industry saw general downturns. It could be said to be as a result of numerous factors like inappropriate supply in the residential sector, over-supply in the retail and commercial sectors, as well as government macroeconomic policy.

This development also had an adverse effect on real estate’s contribution to the National Gross Domestic Product (GDP).

According to the latest GDP figure, there was a negative growth of -2.68% at the end of October 2018. This showed a drop in the Q3 contribution to GDP from 7.09% in Q2 to 6.88%.

But, there’s a way out!

According to an article published in The Guardian Nigeria Newspaper, experts have said that the downturn witnessed by the sector was more of misjudgment by operators than lack of infrastructure and government policies. They also mentioned that resolving the mismatch of actual demand versus the current supply will indicate a new view of the real estate sector.

One other thing that was pointed out was the need to deploy technology in the real estate industry in Nigeria. This would make the industry more investable. Plus, it would help to increase liquidity; driving greater ownership and making the real estate industry a significant talking point in 2019.

Furthermore, in a recent survey carried out by KPMG on 130 real estate decision makers across 36 countries, 8% of them see technological and digital innovation as an intriguing prospect while only 24% already have a distinct technology and digital strategy.

A typical example of where technology comes into play is in the way properties are visualized and built. Also, it can be used in the way these properties are sold, marketed, and researched. Most importantly, with technology, the industry offers tenants adaptable, smart, flexible, and energy-efficient functionality. These are crucial factors when determining sustainable long-term investment criteria and evaluating the future feasibility of investment properties.

From the ways buildings are designed, built, and operated to how the office, industrial, and retail processes are conducted; technology helps to transform everything in real estate in profound ways.

What’s A Typical Example?

Take Building Information Modeling (BIM) for example; a shared knowledge resource and a digital representation of the functional and physical characteristics of a property that forms a reliable basis for decisions throughout the lifecycle of the facility. Everyone involved in the development of a facility is well-informed about what’s happening right from pre-construction to facility management.

Technology just seems to make things easier.

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