Property and technology: The next frontier
Category Newsletter: Lead Article
Disruption is something that we've come to understand as a positive thing, particularly in the tech space. One only has to look at often-cited examples such as Uber, Airbnb and Netflix, among countless others, for substantiation. The property industry too has been impacted by disruptive tech innovations, and for an industry that's often criticised for being too "analogue", the strategic incorporation of technology into our systems and processes are exactly what we need to create new opportunities, ensure the industry remains professional and that we are able to render world-class service.
For the sake of clarification, proptech is simply "one small part of a wider digital transformation [that] consider both the technological and mentality change of the real estate industry", as per the definition offered by Unissu, the largest, most accurate directory of Proptech businesses in the world".
What's useful about this definition is that it takes into account the "mentality" change that underpins the widespread adoption of disruptive technologies. This is no different for the property sector.
South Africans are increasingly comfortable with using online tools for doing everything from shopping for groceries to buying or selling property, and this is a great thing. Proptech has great potential to help make our industry more effective, more agile and allows us - importantly - to stay up-to-date with consumer preferences and needs.
Buyers these days are really savvy and well-informed about market conditions, property prices and the like, thanks to information freely available on various property portals. This makes for a far more dynamic property transaction, which ultimately makes the market more robust and competitive, which is a very good thing.
Digital technology in the property space allows for a level of transparency that places the power in the hands of the consumer. Not only does this make it more convenient for buyers and sellers but it also enhances the quality of the decision-making process.
A key feature of proptech is its ability to make data more widely available. Data - simply information about clients and markets - is one of the most valuable assets in business today. Data takes the guesswork out of decision-making by offering relevant insights and analysis that work to inform strategy. In property particularly, this can help to predict market fluctuation which in turn can help roleplayers plan how to best take advantage of associated opportunities.
Proptech is there to help estate agents offer a better, faster and more dynamic service to customers, but does not replace the estate agent,.The role estate agents play in property transactions remains vital. While the digital tools help to make information more readily available to the client, the agent offers advice and expertise that are invaluable in the home-buying process.
For example, when it comes to selling a property the goal is almost always to move it as quickly as possible. This is what agents do every day, which means they are able to work faster and more efficiently because they know the systems, the processes and the industry. People forget that selling a property is about more than listing it online and waiting for potential buyers to flock to you. It requires active marketing, not to mention the documentation, viewing appointments, negotiations and reams of paperwork.
The property market is a complex business with various legalities and processes that must be adhered to. The easiest way to navigate this is to work with a professional - it saves the client time, money and stress.
As we adopt more proptech solutions for use across various aspects of the property transaction, there's every chance that a digital-first approach will simply be the way we do property in South Africa. This is particularly important as we seek ways to strengthen and grow the industry in an economy that was severely strained, even before the ongoing effects of the Covid-19 pandemic added another layer of complexity.
Proptech has the potential to make the property industry in South Africa more efficient, more resilient and to help drive value for clients at every turn. The latter point being the most significant.
Author: Leapfrog Property Group
