Real Estate Technology Adoption is an important topic today. Real estate, consisting of land and structures like buildings and roads, is a tangible property that offers various investment opportunities. It encompasses residential, commercial, and industrial properties and is widely considered a secure investment option. Contrary to popular belief, real estate investments are not limited to experts; anyone can take advantage of them. Investing in real estate acts as a safeguard against currency devaluation and instills confidence in shareholders.
Real estate is a valuable asset that enhances a shareholder’s portfolio and is primarily used for expansion purposes. It has a history of stability and is considered a low-risk investment. Currently, there is a global trend towards the development of smart cities, where urban planning incorporates networks, applications, and interactions for a technologically advanced living experience.
The real estate market plays a vital role in the overall health of the economy due to its size and potential impact. Real estate crises can have severe consequences, leading to financial and macroeconomic problems. Transparency and liquidity issues, high transaction costs, individual biases, and lengthy transaction times contribute to the challenges faced by the real estate market. Ignoring the immense business prospects offered by technology is unjustified.
Innovation has not only improved people’s lives but has also revolutionized property transactions. However, technological advancements come with security risks. Blockchain technology, which gained prominence with cryptocurrencies, provides an irrevocable and tamper-proof solution for the real estate sector. By leveraging blockchain, real estate transactions can become transparent, eliminating hidden clauses and enhancing trust.
Moreover, the COVID-19 pandemic has significantly impacted the economy and shifted advertising strategies towards digital platforms. As a result, the real estate sector needs to embrace digital transformation, including immersive technologies like virtual reality (VR). Utilizing VR in real estate marketing can lead to more sustainable and intelligent practices.
The following are some of the challenges in the real estate industry that can be addressed through blockchain and VR:
- Fraud risks associated with traditional written contracts and personal interactions can be mitigated through blockchain’s secure and transparent nature.
- Multiple expenses, such as legal fees, agent fees, and taxes, inflate the overall cost of real estate investments. By streamlining processes and eliminating intermediaries, blockchain can reduce expenses.
- Existing real estate procedures heavily rely on human elements, necessitating the involvement of additional parties to establish trust. Blockchain technology can facilitate trust and eliminate the need for intermediaries.
- The involvement of multiple agents in real estate transactions leads to time-consuming processes. According to a survey, over 70 percent of consumers consult with multiple professionals before making a purchase decision, resulting in significant time investment. Blockchain and VR can streamline these processes and save time for both buyers and sellers.
- The COVID-19 pandemic restricted physical property tours and hindered decision-making in the real estate industry. Embracing VR technology can provide virtual property tours and enable buyers to make informed decisions remotely.
Nigeria, with its thriving economy and a pool of skilled real estate professionals, has the potential to achieve these advancements in the real estate sector. ESV Dang, Ibrahim Jandah, a Registered Estate Surveyor and Valuer, shares this perspective from Abuja, Nigeria.