Adopting Emerging Technologies to Improve Real Estate Transactions in Nigeria

ESV Dang, Ibrahim Jandah, 

Real estate is a tangible property that comprises of land and structures including buildings, roads, and structures, among several other things. There are various sorts of real estate, such as residential, commercial, and industrial real estate. Real estate is regarded as one of the most secure investments. Real estate investments are available to anybody, not just gurus. It functions as a safeguard against currency devaluation and provides shareholders with a sense of confidence in their investment.

It is a tangible asset that looks excellent in a shareholder’s portfolio and is primarily used for expansion. Real estate is non-volatile and has been regarded as risk-free for many years. Worldwide, real estate is undergoing a significant development and shift toward smart cities. Smart cities are being developed, and a plethora of networks, applications, and interactions are being integrated into urban planning for initial and ongoing use.

Due to its magnitude and potential for catastrophic effects in the event of a collapse, the real estate market is crucial to the health of the entire economy. Real estate crises frequently result in financial problems, which can then trigger macroeconomic as well as microeconomic meltdowns. The real estate market has problems that could contribute to crises, including issues with transparency and liquidity, high transaction costs, individual preconceptions, and lengthy transaction times. Therefore, there is no justification for ignoring the tremendous business prospects that this technology can offer.

Innovation has not just advanced people’s lives, but it has also improved the techniques of property transactions. However, technological improvements do pose security risks. As a result of advancements in Block chain technology following cryptocurrencies, the irrevocable, tamper-proof technology began to take root in a variety of fields. Real estate, which was previously unreliable due to hidden clauses in lease terms and other factors, can now be a transparent process thanks to Blockchain technology.

Additionally, the COVID-19 pandemic has had a big influence on the economy and resulted in a considerable adjustment in advertising strategies towards digital advertising (Athira Azmi, 2021). As a result, the real estate sector is in dire need of digital transformation through the use of immersive technologies such as virtual reality (VR) (Andrew, 2018). It is imperative for the real estate sector to redesign their commercial tactics in order to deploy VR for more sustainable and smarter real estate marketing.

Below are some current real-estate challenges that blockchain and virtual reality (VR) can be used to surmount.

Conventional approaches have a greater risk of fraud because contracts are in writing and credibility relies upon personal interaction.

Expenses are also a concern owing to the uses of several agents and multiple expenses such as legal fee and other fees, multiple taxes etc, amongst many others. All of these costs are applied to the property value, making these investments costly.

Existing real estate procedures are reliant on human elements, and parties involved most often must engage an additional side in order to develop trust for these investment process.
The time spent in the transactional process suffers as a result of the engagement of several agents in the Real-estate Investment process. According to a survey conducted, over 70 percent of consumers consult with more than one professional to strike the best bargain and determine where to purchase the property. This takes a significant amount of time, which could be better spent elsewhere.

Prospective buyers were not able to tour properties on the market and make purchase selections, making the real estate industry one of the key industries impacted by the pandemic.
Nigeria, with the largest economy in Africa and a growing pool of versatile real estate professionals can achieve this.

ESV Dang, Ibrahim Jandah, a Registered Estate Surveyor and Valuer is the General Manager, Property Development at the Federal Housing Authority (FHA), he sent in this piece from Abuja.