The disruptive impact of technology in all aspects of human activity is no longer news. It is a reality staring us in the face, and it is so pervasive that nowhere, including real estate, is left out.
Today, though some investors are yet to adopt it, digitization has become the new face of real estate. It is a new façade for new times, according to Sandip Borkar of Yourstory—an online publication on digital transformation.
Real estate is integrating digital technologies across the sector, introducing tools like artificial intelligence and automation to redefine operations and interactions between agents, sellers, and buyers.
In its legal perspective on digitization in real estate, the Olisa Agbakoba Legal (OAL) explains why, despite its advancement, full adoption of digitization is yet to happen in real estate, blaming it on resistance to change.
The body explained that many stakeholders, including real estate investors, agents and landowners, are reluctant to adopt digital solutions due to trust issues, lack of digital skills, and fear of losing control over transactions, stressing that traditional intermediaries often see digital platforms as a threat.
The body also notes that the absence of clear policies and regulations governing digital transactions creates uncertainty, particularly around blockchain-based property records, which discourages buyers and investors.
“Advanced technologies like blockchain, artificial intelligence (AI), and virtual reality (VR) require significant investment, which many small and medium-sized real estate businesses cannot afford, slowing down adoption.
Again, many real estate agents and property owners, especially in rural areas, lack the digital skills and internet access necessary to navigate digital platforms, hindering widespread adoption,” OAL stated
Some investors in the sector have, however, adopted this concept and are already running with it. One of such investors is Pennek Nigeria Limited, a leading real estate firm specializing in investment, development and management.
Kennedy Nnadi, the company’s managing director/CEO, in an interview with BusinessDay, provided insights into their digital transformational journey. “In recent years, we’ve been making our platform more digital, embracing social media platforms as a means of connecting to the world,” he disclosed.
Continuing, he said, “we also have projects in Abuja and Lagos that operate with smart technologies. I strongly belief that we’re getting to that stage of total digitization.”
According to him, Pennek is dedicated to creating innovative living spaces and providing an affordable lifestyle experience that positively impact on homeowners and the communities they serve. “Pennek was established to meet the real investment needs of home and land seekers, offering tailored solutions that combine affordability, luxury, and long-term value,” he said.
Like Pennek, other investors who have adopted digitization see the benefits it brings to their operations. For instance, the diverse applications of AI and machine learning (ML) have opened endless possibilities in businesses.
Roland Igbinoba, the president of the Nigeria Proptech Association, who has been vocal about the importance of digitization in the real estate sector, says there is need for technology to improve transparency, efficiency, and sustainability in property operations.
Igbinoba has advocated for the digitization of land documents in Lagos State, which will allow interested persons to access property information from anywhere in the world.
This initiative is part of a broader effort to create a sustainable platform for local and foreign investors to participate in the real estate sector. Igbinoba’s efforts reflect a commitment to leveraging technology to address challenges in the real estate market and enhance the overall experience for stakeholders.
Similarly, OAL sees benefits in the adoption of blockchain and smart contracts in real estate business, explaining that this is necessary since property fraud is a significant issue in Nigeria, with multiple claims to a single property posing risks for buyers and investors.
“Blockchain technology addresses this by providing secure, immutable records of property ownership and transaction history, reducing fraud and title disputes,” they said, citing Sytemap, a Lagos-based company, which uses blockchain for digital title deeds and secure transactions, fostering trust.
“Additionally, blockchain’s smart contract feature automates ownership transfer once terms are met, eliminating intermediaries. This integration reduces fraud and enhances the transparency, security, and efficiency of real estate transactions,” OAL assured.
