The untapped potential in the property industry can be harnessed by Property Management Companies and Property Technology (PropTech) Startups by activating data-driven services and technology to meet customers’ needs, Mr ‘Deremi Atanda, the managing director of Remita Payment Services Limited (RPSL), has advised.
Mr. Atanda, a panellist at the Good Tenant Conference held recently in Lagos, addressed the theme: “Maximising ROI and Scaling Impact for Property Management Companies through Technology.”
He elaborated on how innovation through data and technology can help Property Management Companies identify new and existing market opportunities, driving operational growth.
Fellow panellists included Adekunle Jinadu, Co-Founder, Good Tenants; Osarugue Awani, Vice President, Marketing and Strategy, Terragon Group; and Charlotte Oduniade-Akeju, Chief Business Director, Tremendoc Limited; amongst others.
They reached a consensus on the pivotal role of data aggregation, partnerships, and technology in the PropTech industry.
PropTech refers to the application of technology to improve the real estate industry. While the PropTech industry is still in its early stages of development, it is growing rapidly.
According to Precedence Research, the global PropTech market size was valued at $30.16 billion in 2022 and is projected to reach $133.05 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 16%.
This investment is fueling the development of new and innovative solutions for the industry.
According to Mr. Atanda, the increasing application of technology in this sector holds significant promise. However, traditional industry players risk being disrupted if they fail to adapt and align themselves with this trend.
“Technology is rapidly reshaping the real estate landscape, fundamentally altering how the sector operates. Notably, this transformation is being driven by individuals and organisations outside the traditional realm of property experts.”
“This shift highlights the disruptive power of technology when applied to established industries. It can dislodge and replace those who hold traditional roles, particularly if they fail to embrace technological advancements. Hence, the urgent need for industry players to move beyond a superficial interest in technology and actively engage in its adoption and implementation,” he remarked.
The Managing Director of Remita further highlighted their existing collaborations with some of Nigeria’s leading financial service providers. The company is actively onboarding diverse tech startups through its dedicated “Remita for Startups” initiative, designed to provide essential support and accelerate the success of these emerging businesses.
The “Remita for Startups” initiative provides startups with a comprehensive suite of resources aimed at empowering them throughout their venture-building journey.
These resources include training opportunities through the Remita Startup Academy; granting startups access to experienced professionals within the tech ecosystem.
Additionally, startups can benefit from extensive product development opportunities by utilising Remita’s solutions, such as funds transfer APIs, payment gateway APIs, a comprehensive vending suite, direct debit APIs, POS terminals, and more. The initiative also offers valuable collaboration opportunities through strategic partnerships and access to capital.
With a population exceeding 200 million individuals, according to data from the United Nations, Nigeria presents a significant and largely untapped market opportunity. The informal sector contributes an estimated 70% of the country’s GDP (National Bureau of Statistics of Nigeria). However, unlocking the full potential of this market necessitates effective data aggregation, transparent processes, increased efficiency, stringent quality standards, and a streamlined credit system.
Mr. Atanda recognises this vast chasm of possibilities, stating, “Remita is evolving into a data-driven company. Data can reveal a wealth of insights about the industry and its tenants. We are on the cusp of revolutionising Nigerian real estate through data and technology, while simultaneously supporting startups entering the sector.”
The deployment of technology and data possesses the potential to make the Nigerian real estate sector more transparent; boost liquidity through access to flexible credit; cut fraud through increased title integrity; aggregate demand to drive greater homeownership and reduce bureaucratic bottlenecks limiting sectoral growth.
Mr Atanda further stated that as with every other economic segment, innovation will always outpace regulation. Real estate operators must, therefore, proactively explore the vast potential within this sector, staying ahead of regulatory frameworks.
“Technology is permeating the real estate sector and defining its workings. Even individuals not directly involved in real estate will contribute through data, paving the way for technology startups to disrupt the industry. Property Management Companies neglecting to innovate will be left behind in the industry’s new growth phase, which will be fuelled by data and technology,” he concluded.
Recognising the substantial financial commitment real estate represents for many individuals, Mr Atanda highlighted the company’s commitment to alleviating this burden through innovative solutions.
“We offer an automated direct debit service, in conjunction with partnerships with key organisations, to provide salary earners and SMEs with consistent cash flow a convenient and timely solution for rent payments to landlords and property management firms,” he remarked.
Echoing Mr Atanda’s sentiments, Adekunle Jinadu, co-Founder of Good Tenants, emphasised the company’s dedication to leveraging technology and process innovation to unlock and grow diverse revenue streams for property and facility management leaders.
He quipped that his organisations’s research across the African property market reveals similar challenges that demand more technological solutions.
