Proptech Companies Disrupting Real Estate in Nigeria

Proptech Companies Disrupting Real Estate in Nigeria

Proptech in Nigeria

With a steadily increasing population and the emergence of numerous SMEs in Nigeria, the demand for housing and property is on the climb. This fact makes the country a blossoming destination for real estate investors. This brought us to the topic of proptech.

From the bustling urban hubs of Lagos, Abuja, and Portharcourt, to the serene cities across the nation; Nigeria’s real estate sector is a space flowing with potential.  

Within this dynamic, Financial Technology (FinTech) companies have emerged as accelerators of change with the seamless integration of technology into real estate transactions. This innovation has birthed a new sector popularly known as Proptech (Property Technology). 

At the end of this article, you will: 

  1. Understand the different ways fintech is being used in the Nigerian real estate industry  
  2. Understand the benefit of using fintech for real estate transitions: and 
  3. Understand the practical importance of using fintech solutions for your real estate needs

Let’s begin.  

What is Proptech 

Property technology (Proptech) simply refers to the innovative use of technology and digital solutions to enhance various aspects of the traditional real estate industry.

Essentially, Proptech seeks to streamline the way real estate transactions are executed, managed, and optimized. This makes the industry, more efficient, convenient, and sustainable using cutting-edge technological solutions. 

Proptech companies

Proptech companies leverage the innovation of apps, blockchain, software, data analysis, or other technologies aimed at streamlining property management, improving the home-buying and renting experience, and making buildings more energy-efficient and connected.

Gone are the days when budding investors needed to go through numerous walls to partake in the real estate space. With Fintech-driven Proptech platforms, both local and international investors can access the Nigerian real estate market with greater ease. 

 Thereby attracting capital to the sector, stimulating development and economic growth! 

Categories of Proptech Companies  

In this section, we will delve into the top Proptech categories, shedding light on the evolving industry of real estate in the digital age. 

Transaction Facilitation 

  1. Agency and Brokerage 
  2. Listing Services 
  3. Renting and Property Management 
  4. Leasing and Rent Management 

Asset Management 

  1. Asset Management 
  2. Investing 
  3. Real Estate Investment Advisory and Consultancy 

Financial Services 

  1. Mortgages 
  2. Loans 
  3. Probate 

Technological Innovations 

  1. Blockchain-Based Ownership (e.g., NFTs) 
  2. Virtual Inspection 

Others 

  1. Due Diligence 
  2. Construction 

The Future of Proptech in Nigeria 

The adoption of technology in Nigeria has grown rapidly over the decades, penetrating in some way into all the sectors of the country.  

 Considering the continuous emergence of proptech companies, there are certain factors driving the adoption of fintech in the country’s real estate industry. These factors not only address existing challenges but also tap into emerging opportunities, making fintech solutions increasingly indispensable in the industry. 

Here are the key drivers fueling the rise of proptech in Nigerian real estate: 

Rapid Urbanization and Population Growth 

Nigeria is experiencing rapid urbanization, with millions of people migrating to cities in search of better opportunities. This demographic shift has led to increased demand for housing and urban infrastructure, pushing for more efficient real estate solutions.

Housing Deficit 

Nigeria faces a significant housing deficit, with millions of citizens lacking access to affordable and quality housing. Fintech-driven innovations, such as property crowdfunding and digital mortgage lending, are helping bridge this gap by making homeownership more attainable.

Proptech - Lagos

Mobile and Internet Penetration 

Internet usage has grown in Nigeria as mobile Internet subscriptions hit 159.5 million in July 2023, according to data obtained from the Nigerian Communications Commission. This widespread connectivity has enabled fintech companies to reach a broader audience, offering digital real estate services accessible to a growing number of Nigerians. 

Active Internet Subscribers July 2023

Digital Literacy and Smartphone Adoption 

Increasing digital literacy and the widespread use of smartphones have made it easier for individuals to engage with fintech platforms for real estate transactions. Mobile apps and user-friendly interfaces have contributed to the seamless adoption of these technologies. 

Regulatory Support 

The Nigerian government and regulatory authorities have shown a willingness to support fintech innovation in real estate. Although there are no specific laws that define or regulate proptech companies, regulations relating to the industry can be found in start-up laws, real estate laws, and business laws. 

Desperate need for Transparency and Security 

Given historical challenges related to land ownership and fraud in Nigeria, Fintech solutions, including blockchain technology, enhance transparency and security in real estate transactions, making the industry highly appealing to stakeholders.  

Access to Funding 

In the past, real estate investment in Nigeria was often reserved for high-net-worth individuals and institutions. Fintech platforms provide individuals with easier access to real estate financing. This includes crowdfunding options, peer-to-peer lending, and simplified mortgage application processes, reducing barriers to entry for property investors and homeowners. 

Practical Applications of PropTechs in Nigeria 

Now that the reasons for fintech adoption in real estate have been made evident. We will now look at how these proptech companies can be used in the practical sense of the industry. 

These companies have harnessed technology to reshape the way real estate transactions are conducted, offering innovative solutions that cater to the diverse needs of investors, homeowners, and renters. Let’s delve into the journey of fintech in Nigerian real estate: 

1. Digital Property Listings 

In the early stages, technology’s contribution to the Nigerian real estate market primarily focused on digital property listings.  

From residential to commercial properties, platforms emerged to connect sellers with potential buyers and renters, providing a convenient and efficient way to showcase available properties based on their investment goals and preferences.  

Advanced search filters enable users to specify their preferences, such as location, price range, and property type, making it easier to find properties that match their criteria.  

These additions simplify the process of discovering properties without traditional real estate agents and word-of-mouth inquiries.  

2. Real-Time Property Marketing and Transactions 

Fintech-driven marketing platforms have revolutionized the way properties are marketed. Through targeted digital advertising, property owners and agents can reach a wider audience, improving the chances of swift sales or rentals. 

 These platforms also offer transparency, detailed property information, and virtual property tours, enabling investors to make informed decisions about potential investments. 

Furthermore, fintech companies facilitate online property transactions, enabling buyers to complete purchases, make payments, and sign contracts electronically. This shift away from cumbersome paper-based processes streamlined property acquisitions and increased transparency. 

3. Crowdfunding 

Property crowdfunding is a financial model that allows multiple individuals, often referred to as investors or backers, to pool their funds together to invest in a real estate project. 

 Crowdfunding platforms act as intermediaries, connecting developers seeking financing with potential investors interested in real estate opportunities. Enabling even those with modest budgets to participate in property ventures, share in profits, and diversify their portfolios. 

Investors typically purchase shares or stakes in the property project, and their returns are directly linked to the project’s performance. This can include rental income, capital appreciation, or a share of the property’s profits upon sale. 

4. Mortgage Loans Simplified 

Traditionally, accessing mortgages in Nigeria could be a complex and time-consuming process. But today, Proptech firms have stepped in to simplify mortgage lending by offering digital mortgage application and approval processes.  

Investors can leverage mortgage loans to finance property purchases, allowing them to acquire properties without paying the full purchase price upfront, making homeownership more accessible. 

Also with the invention of Peer-to-Peer Lending Platforms, investors can earn interest on their loans, often with attractive rates, while helping fund real estate development projects.  

5. Blockchain and Smart Contracts 

In recent years, blockchain technology has made its mark on the Nigerian economy and the real estate industry was not excluded. Fintech companies like HouseAfrica leverage blockchain for secure, tamper-proof property records and smart contracts that automate transactions.  

 This adds a layer of trust and transparency to real estate dealings, reducing fraud and disputes. 

In addition, some fintech platforms are exploring property tokenization, where real estate assets are represented as digital tokens on blockchain platforms. 

Tokenization makes fractional ownership of high-value properties possible, opening opportunities for even small investors to own a share of premium real estate. 

6. Property Management Software 

Fintech platforms such as Rentsmallsmall, offer property management solutions that help investors efficiently manage their real estate portfolios, including rent collection, maintenance, and tenant communication. 

 These tools enhance the management of investment properties, ensuring optimal returns and reducing administrative burdens. 

 Top 10 Proptech Companies in Nigeria  

Here are some notable real estate marketing campaigns driven by fintech in Nigeria: 

Rentsmallsmall  

Proptech - Rentsmallsmall

RentSmallsmall is a platform that offers flexible monthly payment plans for renting properties, with an emphasis on simplicity and affordability. 

Proptech Category: Rental services. 

Core Services Offered 

  1. Flexible Payment Plans: RentSmallsmall offers various flexible payment plans to make monthly rent payments easier for users. 
  2. Zero Legal & Agency Fee: The platform connects users to verified properties, eliminating the need for brokerage and legal fees. 
  3. Vetted Homes: Users can browse and filter unique property listings on the platform. 

Dominant City of Operation: RentSmallsmall operates predominantly in Nigeria, with a dominant presence in Lagos and Abuja. 

Property pro 

Proptech - PropertyProng

PropertyPro.ng offers a web-based platform for property rentals and sales, connecting users with legitimate and verified real estate agents. The platform features over 60,000 property listings, including homes, houses, lands, shops, office spaces, and other commercial properties. 

Proptech Category: Listing Services 

Core Services Offered 

  1. Property Search: PropertyPro.ng provides users with an online platform to search for properties available for rentals and sales. 
  2. Connecting Users: The platform connects users with legitimate and verified real estate agents, ensuring a secure and reliable property search experience. 
  3. Partnerships: PropertyPro.ng offers opportunities for small, medium, and large-scale real estate companies in Nigeria to partner with them to scale up the sales and rentals of their properties. 

 Dominant City of Operation: PropertyPro.ng operates in Nigeria, with no specification of a dominant city. 

 VENCO

Proptech - Venco

VENCO is an all-in-one community management solution for multi-unit residential and commercial communities. It offers software solutions for property managers, owners, and tenants in various cities. 

Proptech Category: Community management 

Core Services Offered

  1. Smart Utility Vending: VENCO provides online, real-time energy vending capabilities compatible with prepaid energy meters. They also offer their own brand of meters with enhanced features. 
  2. Security Management: VENCO offers a system for visitor and people management, including secure codes, virtual IDs, and access control options. 
  3. Community Management Tool: VENCO provides an integrated property database, issue reporting and management, amenities booking, financial reports, and messaging tools for Facilities Managers and Residents’ Associations. 

Dominant City of Operation: VENCO serves multiple cities and communities in the country.  

Estate Intel 

Proptech - Estate Intel

Estate Intel provides real estate market intelligence and data-driven insights to help businesses make informed decisions in the real estate sector in Africa.

Proptech Category: Real Estate Market Intelligence 

Core Services Offered

  1. Real Estate Market Intelligence: Estate Intel offers access to historic property prices, vacancy rates, project team data, and more for nine property sectors in eight African cities, providing valuable market insights. 
  2. Faster & More Accurate Valuations: They provide a lease and sale comps database with over 600+ transactions, enabling accurate property valuations. 
  3. Verified Projects Information: Estate Intel offers verified project information, including price, location, and contractor details, on thousands of properties across Africa. 

Dominant City of Operation: Estate Intel operates in multiple African cities. 

Seso Global 

Proptech - Seso Global

Seso is Africa’s trusted property marketplace making it easy to search, finance, and buy verified properties while providing end-to-end support during the homebuying journey. 

 Proptech Category: Listing Services 

Core Services Offered 

1. Vetted Properties: Seso collaborates with over 185 property developers, offering access to 15,000+ verified units for property seekers. 

2. Property Finance: Seso partners with leading lending banks to provide bespoke mortgage solutions and flexible payment plans. 

3. Geographic Focus: Seso operates across sub-Saharan Africa, with a current focus on West Africa, including Ghana and Nigeria. 

Dominant City of Operation: Seso primarily serves the property markets in Ghana and Nigeria. 

House Africa 

Proptech - HouseAfrica

HouseAfrica is a property technology firm founded in 2019 with a mission to enhance efficiency and trust in the African real estate industry through innovative technologies. 

Proptech Category: Blockchain-Based Ownership (e.g., NFTs) 

Core Services Offered

1. Satellite Map: HouseAfrica provides a secure satellite platform that simplifies the process of verifying land locations and distances for property buyers. 

2. Blockchain & NFT: They leverage blockchain and NFT (Non-Fungible Token) technology to assist real estate companies in issuing verifiable certificates of land allocation. 

3. Payments & Payouts: HouseAfrica offers solutions for real estate companies to easily accept payments from anywhere, anytime, and automates commission payouts. 

Dominant City of Operation: HouseAfrica’s focus is on enhancing the real estate industry in Africa. 

Cobuildit 

Proptech - CoBuildit

CoBuildit is a platform that allows individuals to co-invest in real estate projects, forming partnerships to fund these projects and gain high returns. 

Proptech Category: Investing 

Core Services Offered

1. Gain Massive Leverage: CoBuilding provides access to partners and real estate projects that individuals might not be able to afford on their own. 

2. Keep Control of Your Project: Unlike traditional crowdfunding models, CoBuilding allows partners to have control over the real estate project. 

3. Get Great Tax Benefits: CoBuilding is tax-efficient and enables participants to retain more of the profit compared to traditional real estate investment models. 

Dominant City Operation: CoBuildit’s dominant city of operation is Abuja 

Newhomes.ng 

Proptech - Newhomesng

Newhomes is a one-stop property solution in Nigeria that lists existing marketable properties by certified Sellers and Developers. 

Proptech Category: Services 

 Core Services Offered

1. Property Listings: Newhomes list choice properties in choice locations, helping users find properties based on type, amenities, and budget. 

2. Trustworthy Property Listings: They only list properties from trusted developers, ensuring that home buyers can make informed decisions. 

3. Investment Services: Newhomes offers investment services to help maximize returns on investment properties, including long leases, short lets, and dedicated asset management. 

Dominant City of Operation: It focuses on listing marketable properties across all cities in Nigeria.

Gatepass 

Proptech - GatePass

GatePass is a mobile platform designed to connect estate managers with residents to address community-related issues efficiently. 

Proptech Category: Property Management 

Core Services Offered

1. Community Management: Estate managers can create, manage, and track communities on the platform. 

2. Payment and Bill Management: The platform supports seamless personalized fund management, including bill generation, payment, and collection, fostering trust within communities and ensuring regular bill payments. 

3. Security Management: GatePass offers security functions, such as real-time visitor management within communities and automated emergency notifications. 

Dominant City of Operation: GatePass is a digital solution that can be implemented in various communities and regions. 

Coreum RE

Proptech - Coreum RE

Coreum is a Real Estate (RE) Company aiming to make Real Estate affordable to everyone, regardless of income level, age, or location. They utilize Real Estate Syndication to promote positive growth in the African Real Estate Market. 

Proptech Category: Investing 

Core Services Offered

1. Real Estate Syndication: Coreum allows a broader range of individuals to aggregate their funds for the purchase and development of strategic real estate assets, thereby lowering the barrier to entry in the real estate industry. 

2. Property Co-Investment: Members can co-invest in real estate properties with high growth potential, benefiting from value appreciation and rental income. 

3. Diversified Portfolio: Coreum’s model enables members to diversify their real estate portfolio by investing in various locations and different types of real estate, including bare land, commercial, or residential developments. 

Dominant City of Operation: Coreum focuses on making Real Estate accessible across Africa. 

Why You Should Use Proptech Products  

Why should you consider Proptech? Whether you’re a prospective buyer, seller, investor, or agent, here’s why you should consider exploring fintech options for your real estate needs: 

Access to Invaluable Data 

Proptechs provides you with easy access to comprehensive data and insights about properties, market trends, and financing options. With this information, you can be ensured to make smarter investment choices and secure the best deals.  

Moreover, online platforms and listings are accessible 24/7, allowing clients to view properties and make inquiries at their convenience. Digital platforms allow stakeholders to update property listings in real time, ensuring that potential clients have access to the latest information. 

This enables you to cater to a wider audience, accommodating potential clients from different time zones and schedules.  And further ensures that properties are presented accurately, reducing misunderstandings and minimizing wasted time on both sides of a transaction 

Convenience 

With Proptech you can say goodbye to the hassle and bustle of paperwork, lengthy processes, and countless in-person meetings. Services such as digital property listings, online mortgage applications, and paperless transactions save you valuable time, money, and effort.  

Cost Savings 

Fintech can help you save on transaction costs, administrative expenses, and even financing. Solutions such as online mortgage lending platforms help to secure competitive rates and reduce your overall expenses. These savings can significantly impact your bottom line when venturing into real estate. 

Transparency and Security 

As said earlier, blockchain-based solutions like HouseAfrica offer a new dimension of transparency and security in real estate transactions. You can trust that the information you store and access is accurate and protected from fraud.  

Emergence of Digital Marketing 

In past times, Nigerian real estate was dominated by printed material and word-of-mouth transactions. With the involvement of proptech and features such as listings, the landscape of the Nigerian real estate sector, offers numerous advantages for property stakeholders. 

Digital marketing tools allow stakeholders to create highly targeted campaigns based on demographics, location, interests, and behavior. 

Sellers and developers can focus their marketing efforts on reaching individuals who are most likely to be interested in their properties, leading to higher-quality leads. This results in better allocation of marketing budgets more efficiently, optimizing their spending for maximum ROI. 

FAQ’s 

Should I accept a lease from a proptech company?

If a Proptech company offers to lease an apartment, there are essential steps to take. First, conduct due diligence checks to ensure the legitimacy of the offer. Secondly, it’s a good idea to collect rent receipts directly from the landlord to prevent any future disputes. Lastly, visit the property in person before committing to confirm that it matches what you’ve been told. These precautions help safeguard your interests in the leasing process. 

What must I know if I am buying a property online? 

1. Confirm that the property’s title is registered at the Lands Registry. 

2. Verify that the company possesses the legal authority to transfer the property to you. 

3. Ensure that the property is clear from any government acquisition. 

4. Visit the property in person to verify its location, size, and physical characteristics. Additionally, inquire with neighbors if there is any evidence of conflicting claims to the property. These steps are essential for a secure and informed decision regarding the lease. 

Conclusion 

The Nigerian real estate market is evolving, and fintech is at the forefront of this transformation. 

 
 As technology continues to advance, fintech will undoubtedly play a pivotal role in reshaping the future of real estate in Nigeria. Whether you are a buyer, seller, investor, or real estate professional, proptech offers a wide array of tools and platforms that can simplify your transactions, provide valuable insights, and save you time and money.   

Proptech is not just a trend; it’s a practical and strategic choice to stay competitive and make informed decisions in the dynamic Nigerian real estate market. It is not just a tool; it’s a revolution that empowers you to navigate the complexities of the Nigerian real estate market with confidence and ease. 

 So, as you embark on your journey, remember that the future of real estate is digital, data-driven, and full of opportunities waiting to be explored through fintech solutions. Embrace it, and watch your real estate ventures thrive in this exciting new era. 

And for further understanding of the financial intricacies of the Nigerian financial market, subscribe to our Newsletter here and start your way to financial literacy. 

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