The Nigerian real estate sector is undergoing a
significant transformation driven by technological advancements.
The adoption of digital tools such as virtual reality, artificial
intelligence, blockchain, and big data analytics is improving
efficiency, transparency, and access to a broader network of
buyers, sellers, and investors. Traditionally, the sector relied on
manual processes, resulting in higher costs, delays, and
uncertainty. However, the digital revolution is streamlining
operations, making transactions faster, more transparent, and
secure, while simplifying property management and eliminating
bureaucratic obstacles. Embracing digitisation is essential for the
future growth of Nigeria’s real estate market, with various
digital trends offering both benefits and challenges.
The Digital Trends in Nigerian Real Estate and Benefits
a. Virtual Reality and Augmented Reality in Real Estate: Virtual
Reality (VR) and Augmented Reality (AR) are transforming the
property viewing experience, allowing buyers to explore homes and
commercial spaces remotely. 3D property tours enable potential
buyers to inspect properties from anywhere, eliminating travel
costs and agent influence. Using a VR headset or smartphone, buyers
can take immersive virtual tours, explore properties, and even view
the surroundings. This technology is particularly beneficial for
Nigerians living abroad, as it enables them to invest in properties
in Nigeria without needing to visit in person.
b. Online market platforms: The way properties are marketed and
purchased has been revolutionised, with online property
marketplaces like PropertyPro, PrivateProperty, and Nigeria
Property Centre making it easier to find properties globally. These
platforms allow users to filter searches by location, price, and
property type, offering detailed images, video tours, and virtual
reality experiences. This technology reduces the need for physical
visits, accelerates decision-making, and saves time and resources
during property searches.
c. Blockchain and Smart Contracts: 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. Sytemap, a Lagos-based company, 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.
d. Digital Land Registries: Property registration in Nigeria has
historically been slow and bureaucratic, often taking months or
years. However, states like Lagos and Abuja are advancing towards
electronic land registration. Lagos, for example, is leading with
initiatives such as the e-GIS portal and Aumentum Land
Administration Solutions to streamline land record management and
property transactions. While full digitisation is still underway,
its nationwide implementation would significantly modernise
Nigeria’s real estate sector. According to Hernando De Soto in
The Mystery of Capital, digital property data capture is key to
creating fungible assets and unlocking substantial economic
benefits.
e. Big data and Artificial Intelligence (AI): Big data and AI
are transforming the real estate industry by analysing market
trends to offer accurate property valuations and insights into
consumer preferences. AI-powered tools help investors, realtors,
and buyers make informed decisions using real-time data. Estate
Intel, a data-driven company, uses big data to provide analytical
insights into Nigerian property markets, helping investors make
smarter purchasing decisions.
f. Fintech payment solutions: The integration of financial
technology (fintech) in real estate is streamlining transactions
and improving accessibility. Digital payment platforms like
Flutterwave, Paystack, and Remita facilitate secure online payments
for property purchases, rentals, and mortgages. Additionally,
fintech-driven mortgage platforms are simplifying access to home
loans, making homeownership more achievable for Nigerians by
overcoming traditional financing challenges.
Limitations of Technology Adoption in Real Estate
Despite advancements in Nigeria’s real estate sector,
several challenges hinder the full adoption of digital
innovations:
- Resistance to Change: Many stakeholders,
including real estate agents and landowners, are reluctant to adopt
digital solutions due to trust issues, lack of digital skills, and
fear of losing control over transactions. Traditional
intermediaries often see digital platforms as a threat. - Regulatory Gaps: The absence of clear policies
and regulations governing digital transactions creates uncertainty,
particularly around blockchain-based property records, which
discourages buyers and investors. - High Implementation Costs: Advanced
technologies like blockchain, AI, and VR require significant
investment, which many small and medium-sized real estate
businesses cannot afford, slowing down adoption. - Fraud and Cybersecurity Risks: Increased
digital transactions raise concerns about cybersecurity, with
online scams and cyber threats deterring potential users due to the
risk of financial loss. - Digital Divide: 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.
Addressing these challenges is key to unlocking the full
potential of technology in Nigeria’s real estate industry.
Recommendations – The Way Forward
To overcome the barriers hindering the widespread adoption of
technology in real estate transactions, the following solutions are
recommended:
- Media Engagement and Awareness: Real estate
firms and industry bodies should organise digital literacy
programmes to educate stakeholders on the benefits of digital
solutions. Media campaigns through TV, radio, and social media can
help dispel myths about digital transactions and share successful
real-life examples to encourage wider adoption. - Government and Regulatory Support: The
government must enforce laws regulating digital real estate
transactions, including those related to digital land registration
and cybersecurity. Establishing a central regulatory body will
ensure compliance, create transparency, and foster a secure,
investor-friendly environment. - Leverage Cloud-Based Solutions: Real estate
companies should adopt cloud-based platforms with scalable pricing
models, such as Software-as-a-Service (SaaS), which reduce upfront
costs and avoid heavy infrastructure investments. This includes
tools like cloud-based CRM software, virtual property viewing
platforms, and AI-powered valuation systems. - Strategic Partnerships with FinTech and Tech
Companies: Collaborations with tech startups specialising
in blockchain, AI, and VR can provide real estate firms access to
digital tools at lower costs. Partnerships with fintech companies
can also reduce expenses for secure online payments and mortgage
processing. - Cybersecurity Measures: Real estate platforms
must implement Two-Factor Authentication for user logins and
encrypt financial data to protect sensitive information from
unauthorised access, ensuring a safe digital environment for
transactions.
These steps will address the challenges and foster the adoption
of technology in Nigeria’s real estate sector.
Conclusion
The digitisation of real estate in Nigeria has transitioned from
a futuristic concept to an ongoing reality. As previously noted,
the emergence of online property listings and blockchain-based land
registries is fundamentally transforming the manner in which
properties are acquired, disposed of, and managed. While certain
challenges remain, the adoption of digital technologies is poised
to create a more transparent, efficient, and secure real estate
market.
As Nigeria moves away from traditional practices and adopts a
technology-driven real estate ecosystem, stakeholders who
proactively embrace these innovations will be strategically
positioned to succeed in the increasingly digital landscape. The
legal implications of this transformation will require continued
attention to ensure that digital transactions are properly
regulated and protected under Nigerian law.
References
1. Springboard, The Impact of Technology on Real Estate
(https://www.springbord.com/blog/impact-of-technology-on-real-estate/)
2. Virtual Reality and Real Estate: Transforming the Home
Buying Experience (https://www.nigeriahousingmarket.com/real-estate-guide-nigeria/virtual-reality-and-real-estate)
3. Olajide Ajire Prince, The Effect of Technology in Real
Estate (https://www.researchgate.net/publication/384734706_The_Effect_of_Technology_on_Real_Estate)
4. n1
5. Sytemap – Simplifying African Land Ownership
with Technology (https://sytemap.com/)
6. Lagos Launches Automated Application Portal for Land
Acquisition (https://www.channelstv.com/2024/01/27/lagos-launches-automated-application-portal-for-land-acquisition/#:~:text=Governor%20Babajide%20Sanwo%2DOlu%2C%20on,land%20title%20documents%20in%20Lagos.)
7. Ibrahim Baruwa, Digital Transformation Trends in
Nigeria’s Real Estate Market:Innovations and Active
Project
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