There are growing concerns that Proptech which has become a growing trend across Africa will finally disrupt the continents real estate sector in ways never before envisaged by both real estate practitioners, developers and the general public. Proptech which is the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate though still in its growing stage has got to a level that major actors in the industry have taken notice of its disruptive tendencies in Africa. Described as the Uber of real estate, there are about 6,000 Proptech firms registered globally and this new frontier will play a key role across every aspect of real estate on the continent.
This becomes more apparent as a lot of startups especially in Nigeria, Kenya, Ghana, South Africa, and Botswana are pioneering the use of digital technology to leapfrog ahead and overcome traditional market challenges, such as land titles, mortgages, leasing, tenants, while also providing greater improved data and transparency for investors seeking to invest in new markets and assets.
Analysts say that funding for Proptech has grown significantly from $20 million in 2008 to an average of $12BN annually since 2016 with the number startups and seed funding rising each year. This is basically why the upcoming Africa Proptech Forum taking place in Johannesburg South Africa is attracting a lot of attention from across the continent. Organisers say the Forum will provide select Startups with an opportunity to pitch their disruptive business models to Africa’s most high-profile real estate investors and developers.
This opportunity to ‘pitch’ to a high profile and diverse gathering of capital players is fundamental to the growth of this emerging sector according to the organisers, especially as more and more venture capital funds look to Africa’s growing markets for the next big Unicorn.
“There is more capital available, and this year we will have a number of investors attending and two of our keynote speakers include Clive Butkow of Kalon Partners and Ashwin Ravichandran, the Managing Director of African tech incubator MEST.”
With both having recently closing significant seed funds transactions with Kalon investing $660,000 in Flow, a South African Proptech Firm, and MEST confirming the African 11 startups that will receive $100,000.000 in funding by what is one of Africa’s influential tech incubators. The rampant proliferation of Proptech, and subsequent investment, is due to the inherent ‘vertical’ integration opportunity between real estate and technology across the entire value chain.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.