CB Insights reports that in the first half of 2016, $1,8 billion was raised in capital for real estate tech technology companies.
That's an 85% increase compared to the same period just a year prior. Proptech, the disruption of traditional property entities has seen an astronomical rise in investment in the past three years, the majority of which went to American companies, but an increasingly larger showing among Indian, German and British companies as well.
South African proptech companies may not have gotten a large share of the money available in what ahs been dubbed the next decade's fin tech, there does seem to be a change in the adoption and financing of technology in general around sub-Saharan Africa.
Real Estate Investor Magazine's Nadir Jeeva published an article in the August edition about how South African companies have begun to take up the proptech charge. According to Jeeva, the ways in which digital technology has begun to surface in the commercial property sector include virtual property agents, crowd financing as well as the democratisation (aggregation, sharing, and collaboration) of information. All major disruptive game changers in any industries past
Noting the importance of embracing digital technology in the South African commercial real estate market, Jeeva continues:
"Digital technology is necessary to maintain the rhythm of profitability and wealth creation, to increase productivity levels, and ensure that a climate exists for competition and innovation to drive market leadership."
Imfuna seems to be a local company which has invested in the South African market with a suite of mobile applications designed for construction inspectors, residential and commercial property inspectors, and rental property inspectors.
Imfuna's digital inspection apps are one of the ways in which property companies can take advantage of technology advancements to grow their business. The app’s users report up to 75% time savings when using the mobile app to conduct their inspections, as opposed to the legacy pen-and-paper method.
What are your thoughts on the South African proptech terrain? Is there room for a consolidation of industry utilising technology to its full benefit? Is the slow uptake a litmus of the industry in general? Share your thoughts in the section provided below. Thank you for visiting Base64!