The real estate sector is one that has been wrought with slow adoption of technology and a high barrier of entry, despite it being one of the largest asset classes in the world, most of the business categories around it seemed stuck in the early stages of tech adoption but all that has been changing radically in recent years.
With generational trends and shifting consumer behaviors (especially those brought to life during the course of adapting to the “new normal” that is the aftermath of COVID-19) a new wave of innovations targeted toward meeting changing customer needs are being born.
Worldwide, the real estate market is worth $712 Trillion with 75% of this being residential, yet, a large portion of the world’s population is unable to partake of it, not (only) as a result of a lack of knowledge or technical know-how but largely due to the high cost of entry. One of the most pressing roadblocks for investors trying to get in on the real estate market is the illiquidity of assets. To a large extent, investing in real estate today requires upfront investments of lump sums making it difficult for people who are looking to diversify their portfolios with real estate to do so.
According to Crunchbase, in 2019 alone, about $16 billion in venture capital was allocated to real estate-related startups making it clear that the opportunities for above-average returns and global-scale disruption are eminent.
Real estate in Africa holds tremendous monetary benefits because of its huge population, high rate of urbanization, housing deficit, and increased construction activities. Although the pandemic disrupted activities in the sector and in economies as a whole, there are some upward trends have emerged. Taking Nigeria as a case study, the country moved from 6th to 3rd on Absa’s Financial Markets 2020 Index. Despite the difficulties the country is facing, Nigeria is continuing to rise as a top investment destination. When it comes to real estate, Nigeria currently has a deficit of 16 million to 22 million housing units, according to a report by PwC, this requires about 700,000 new houses to be built yearly, compared to the less than 100,000 houses that are being constructed yearly. This makes a clear case that the democratization of real estate is overdue, the question now is, how? The answer can be found in Proptech solutions like Squareroof.
Squareroof is opening up opportunities for more individuals to get into real estate by providing easy access to buy, own and sell a share of an income property without the operating responsibility. This means that, as opposed to the norm, with Roof, you can partake in quality real estate deals that help you put your money to work by collaborating with other individuals to share the cost of sponsoring a project without having to carry the burden of managing a property, giving you access to enjoy consistent passive income and a diversified portfolio.
As real estate is evolving and adapting to more technological solutions, the opportunities within the space are growing and evolving as a result. To be able to take advantage of the growing opportunities in the real estate sector, it is imperative that you know what they are, understand how they work and are informed on how you can get involved, join us as we discuss the future of real estate opportunities.