Jackie Smith | Head | Product | Buyer’s Trust | ooba Group | mail me |
Property technology (commonly known as proptech) is on the rise globally. The escalating significance of proptech within the industry is underscored by its staggering projected market value – poised to reach $86.5 billion by 2032.
Closer to home, however, South Africa’s proptech adoption has lagged and is hindered by entrenched analogue processes and user resistance.
Embracing proptech is essential to our industry’s global competitiveness. These tools help to streamline processes, boost efficiency, cut costs, improve the customer experience, enable data-driven decisions, and reduce our carbon footprint.
Widespread adoption hampered by infrastructure limitations
Realising these benefits requires full industry buy-in, a challenge that persists in South Africa.
In 2022, The South African Property Owners Association (SAPOA) Proptech Division conducted a survey on property businesses which revealed that 52% of surveyed organisations did not have a specific technology or innovation strategy in place. In addition, 83% of respondents shared that more than half of their processes were still manual.
South Africa’s private sector is resourceful, but widespread technology adoption hinges on a robust digital infrastructure. The challenge of ongoing load shedding interrupting internet connectivity and device power supply means that proptech tools are not being harnessed to their full potential.
Challenges also stem from the ‘Digital Divide’, with a quarter of the population lacking regular internet access. Nonetheless, several proptech trends are already starting to reshape the local residential property industry.
Leasing and tenant management platforms
On the rental side of proptech trends, digital tenant management and leasing platforms are streamlining processes and improving the experience for tenants and industry professionals alike.
These platforms often include features for tenant onboarding and screening processes as well as for signing digital lease agreements.
Tenants can use these portals to log maintenance requests, pay their rent and as a direct communication channel with property managers, with a documented conversation history ensuring transparency and accountability for all parties.
Secure online transaction platforms
The property sector frequently involves substantial electronic money transfers, often lacking sufficient security measures. Consequently, it’s become highly susceptible to cybercrime, making some buyers hesitant to entrust their deposits to third parties like conveyancers or estate agents.
The financial aspect of real estate remains largely unchanged from two decades ago when electronic banking became mainstream. This means that it is ripe for innovation and game-changing technology to make transacting online more secure, transparent and a better experience for all parties involved.
One such game-changing proptech tool is the Buyers Trust platform, a web-based application that gives homebuyers an alternative proposition for the investment of their property deposit. It issues a free bank guarantee and protects buyers from having to transfer the funds to a third party who may not have adequate cybersecurity measures in place. The secure platform gives the homebuyer full transparency of their deposit investment as opposed to their money sitting with the seller’s attorney.
The proptech trends that will see the most the most success in South Africa are not the most futuristic technologies – as our digital infrastructure is not yet equipped to handle them – but rather those that offer tangible practical benefits to consumers.
Tools that feature a simple user interface, require minimal data and allow users to have greater control over how their personal data and financial investment are managed will have the most long-term success.
With this disclaimer in mind, she shares two exciting futuristic proptech trends gaining traction overseas that could become increasingly commonplace in South Africa over the next decade.
Virtual tours and visualisation
Some property professionals are increasingly turning to Virtual Reality (VR) to market, stage, and design properties.
VR is often used by agents to conduct virtual property tours and stage empty houses, so that potential buyers can view a property and customise it to their preferences from the comfort of their own home. This increases the size of the buying pool, making it easier for buyers from disparate locations to “view” homes.
VR also enables developers and architects to create virtual models and walkthroughs of properties that are still in the planning and construction phases, helping to visualise the final product and make informed design decisions before construction begins.
The rise of smart homes
Smart homes integrate technology and automation thereby enhancing convenience, energy efficiency and security. Internet-connected devices, including heating, lighting, locks and security systems can be controlled remotely via smartphones or voice-activated tools like Alexa or Google Assistant.
One of the primary benefits of smart homes is the ability to optimise energy usage, which has a positive impact on both reducing your environmental footprint and decreasing your utility bill every month.
Smart heating and cooling systems can learn owner preferences and adjust temperatures, while lighting systems can be automated to turn off when rooms are unoccupied. However, smart homes require electricity to function so local adoption is primarily reserved for those who can afford to go ‘off-grid’.
If South Africa is able to overcome current infrastructure limitations and fully harness these emerging technologies, the property sector will experience a host of productivity and profitability gains that could revitalise our dynamic industry.
