In the last decade, technology has disrupted countless business models, and the speed of these disruptions keeps growing daily. According to Forbes, technology has grown exponentially over the last century, and the rate at which reliable and stable industries are disrupted is indisputable. Ever-changing market conditions, consumer needs, and behavioural shifts gradually redefine the global real estate tech sector. The Kenyan real estate industry continues to expand as investor appetite grows alongside the customer base. Consumers of real estate products have evolved from only using non-technological solutions like physical blueprints and physical site visits to now incorporating technology in their decision-making.
The current real estate customer’s investment needs are accompanied by questions such as, does the house have internet? Can I find the place and developer online? How can I see what I am investing in without physically being there? These expectations and needs have pushed real estate firms to apply strategies and technological innovations like virtual reality, renders and fly-through videos that align with emerging trends to enhance efficiency and meet consumer needs to remain competitive.
The application of technological solutions in the Kenyan real estate sector is and will continue to enable the players in the industry:
Understand investors’ needs
Real estate investors now demand intelligent and energy-efficient homes designed with technology in mind to reduce costs, boost automation and ensure security. This has pushed real estate firms to strive to provide solutions such as renewable energy in the form of solar panels to appeal to investors who are conscious of green buildings. They are also building smart homes that support intelligent apps for security and other home functionalities like turning off lights or closing curtains remotely.
The role of Technology in creating Personalized Home Appliances
Investors also want to see, explore and experience multiple housing projects, even before construction, through virtual tours enabled by virtual reality and fly-through videos. Virtual reality and fly-through videos have further helped boost diaspora investor confidence since they can visualize and understand their potential investments.
Efforts are also in place to exploit technology for data analysis to understand current and future investors’ needs vs. wants. This means clearly understanding who the investors are, the kind of property they want and its location, their budget, and the best ways of reaching out to them. This analysis uses different technologically enabled means, such as machine learning algorithms, to identify patterns and build predictive models that can be interpreted to influence future decisions and projects. Developers also use data analysis to cement their decision to diversify their projects by having high-end, mid-market, affordable housing projects.
Adopt the use of digital tools.
According to data from the Data Reportal for the Digital 2023 report, there were 17.86 million internet users in Kenya in January 2023, an 8 per cent increase between 2022 and 2023. The growth in internet use has led to an increasing need for leveraging the digital space to share information and market products. According to the National Association of Realtors 2021 survey, 96% of home buyers used online searches to find homes. The surge of internet use by investors when house hunting has led to increased use of social media and websites by real estate players to provide information. This has encouraged investors in the diaspora to invest back home since they can easily access information.
More comprehensive access to social media has also contributed to an increase in the online search for information. With the opening up of the internet space, investors can easily get updates on previous, ongoing or upcoming projects. The digital space also enables them to read reviews and testimonials from fellow investors. Through the real estate’s social media accounts, investors can interact with the firms, ask questions and understand their investments. For individuals unable to attend physical site visits, technology is being used to give weekly and regular updates on social media or through webinars that are used as member education forums. Customers can ask questions, provide feedback, and get access to online newsletters that further increase their trust in the developer.
Increase construction efficiency
Technology is reshaping the face of the construction industry from its conventional perspectives to the modern era. As construction demand continues to grow, real estate players are forced to keep up with the new trends in the market. So many technological advancements have evolved in the industry that seek to make it possible for construction developments to last a lifetime. The application of technology in construction enables vast improvements in productivity, efficiency, durability, and safety. Technologically enabled materials like aluminium formwork, prefabrication, and 3D printing have allowed for faster delivery of construction projects. These technologies help speed up construction, thus increasing efficiency and timeliness while avoiding macroeconomic factors that could affect costs.
