With global capital flow into real estate declining across regions, international real estate experts have emphasised the need to explore other sources of capital for projects and opportunities offered by technology in resolving the nation’s huge housing deficit.

The experts spoke at the developers’/cross-border insights sessions on Property technology (Proptech) at the 75th International Real Estate Federation (FIABCI) World Congress hosted in Lagos. The congress attracted FIABCI delegates from around the world and across Africa including Uganda, Ghana, Rwanda and South Africa, who were united in reshaping the future of real estate under the theme: “Global Real Estate Renaissance”.

Chief Executive Officer, Andalusia Real Estate Investment & Development, Saleh Tabakh, argued that the industry is challenged by funding impediments and urged developers to explore non-traditional sources of capital to finance projects.He lamented the problems associated with sourcing capital from commercial banks.

Tabakh said one of the familiar alternative capital sources explored by operatives is tokenization, a process of converting ownership or other rights in a real estate property into digital tokens, typically on a blockchain.

The tokens represent fractional ownership of a property and can be traded on digital platforms, allowing for more accessible and liquid real estate investments, potentially breaking down barriers to entry and enabling wider participation.

“We can allow any person to be able to participate in off-plan projects with as low as $150 and have a share in projects and getting returns. Also, we can allow people who want to invest to have long-term payment plans,” he said.

He stressed the need for developers to understand that as demand for housing keeps increasing, there must be plan formore sustainable solutions, which could include creating vertical communities as lands become more expensive in cities.

According to him, cities like Dubai and others are fast embracing mixed-used developments, where everything needed is available in one building, to limit the high level of travelling and traffic challenges in cities.

The Managing Director/Chief Executive Officer, GMH Luxury, Kuyebi Joseph, said the influence of technology in the housing industry cannot be over-emphasised, particularly in the area of time management, faster delivery of housing units and cost of funds.

Joseph said: “Imagine being able to build over 2,000 housing units in 70 days with the adoption of modern technologies like 3-D housing printing, and modular building. Technology is not only reducing the costs in terms of timeline but also improving the quality of delivery. You can’t compare modular or panel housing construction to our traditional methods of building. Technology has helped to reduce and minimise the cost of energy as the real estate sector happens to be one of the highest consumers of energy.”

However, he lamented low participation of core professionals in the Nigeria’s real estate sector, adding that there was need for improved role to deepen standard enforcement.

Speaking at a cross-border insight session, President, Nigeria Proptech Association, Dr Roland Igbinoba, said there is potential funding for technology in the real estate value chain.

He said as of 2022, the size of the proptech market was about $30 billion, with North America, Europe and Asia having the largest share of investments, while within the proptech space, only three per cent is commanded by Africa.

Igbinoba, who is the founder, Propcrowdy, argued that issues of lack of infrastructure and urbanisation have hindered the adoption and scale up of proptech in the continent. However, he said the issues also present a great opportunity to embrace proptech.

Co-Founder & Chief Operating Officer, Dormot Technologies, Ayomide Alabi, explained that a way out is for the active participation of government and private sector towards scaling up proptech adoption in the industry.

With property technology influence in the real estate industry, the Managing Director, Pishon Consults Limited, Uganda, Catherine Nanteza, expect more smart cities and smart homes in cities in the next five years.