Kenya’s real estate sector is witnessing a remarkable transformation fueled by technological advancements. From the adoption of blockchain for secure transactions and ownership rights to the proliferation of digital platforms bringing various stakeholders together, and the utilization of construction-phase tracking and monitoring tech, technology is revolutionizing the property investment landscape in the country.
In a session moderated by The Kenyan Wall Street at the 11th East African Property Investment Summit in Nairobi last week, four innovators sat down to discuss the topic, ‘Technology Driving Property Ownership.’ This panel answered – what technologies will make property ownership more accessible?
Blockchain: Redefining Transparency and Security
Blockchain technology, renowned for its immutable and decentralized nature, has emerged as a game-changer in the property investment industry. By leveraging blockchain, investors can enjoy enhanced transparency and security throughout the entire transaction process.
Smart contracts, powered by blockchain, facilitate automated execution of agreements, eliminating the need for intermediaries and reducing transaction costs. Additionally, blockchain-based property registries offer a tamper-proof record of ownership, mitigating the risk of fraud and ensuring the integrity of property transactions.
Two companies in Kenya are already working hard on this. One, a startup called alphabloQ enabling both retail and institutional investors to tap into a private blockchain for property ownership in Kenya and Nigeria as part of a $30M+ USD portfolio of properties available. YieldGuru, a startup that’s part of Nairobi’s Antler ecosystem, is building on the public blockchain to make property ownership easier for retail investors across the globe.
Digital Platforms: Facilitating Access and Efficiency
The advent of digital platforms is helping to democratize property investment in Kenya, enabling investors to access a diverse range of investment opportunities with unprecedented ease.
These platforms come in many different shapes and sizes, but what is similar between them all is that they leverage technology to streamline steps in the investment process, providing investors with comprehensive data and analytics to make informed decisions. Moreover, digital platforms offer functionalities such as online transactions, portfolio management tools, and real-time market updates, enhancing the efficiency and convenience of property investment.
One such platform here in Kenya is Naivera, a company dedicated to derisking affordable housing projects by bringing together various stakeholders from mortgage lenders, financiers, developers, and property investors. Naivera has uniquely been able to achieve a 16% ROI, delivering above market returns to their investors.
Construction-Phase Tracking and Monitoring Tech: Ensuring Quality and Accountability
Effective project management is critical to the success of property investments, and technology has revolutionized construction-phase tracking and monitoring in Kenya. Innovations such as drones, IoT sensors, and construction management software enable real-time monitoring of construction progress, quality control, and adherence to timelines.
By leveraging these technologies, investors can mitigate project risks, ensure compliance with regulatory standards, and optimize resource allocation, ultimately enhancing the return on investment.
General Design Management & Building Company, also known as GDMB, leverages technology such as OpenSpace SLAM (Simultaneous Localisation and Mapping) Technology and Matterport Digital Twin Technology. GDMB conducts regular construction audits with a helmet mounted 3-D mapping camera which leaves end buyers with a virtual walkthrough of their building. Services such as these are important for property buyers in Kenya and abroad to de-risk their investments by remotely monitoring and visualizing progress ensuring accountability, transparency, and trust throughout the construction phases.
The Future of Property Investment in Kenya
As technology continues to evolve, the future of property investment in Kenya holds immense promise. Emerging technologies such as artificial intelligence and virtual reality are poised to further revolutionize the sector, offering predictive analytics for investment decisions and immersive experiences for property visualization. Moreover, advancements in fintech are expanding access to financing options, making property investment more inclusive and accessible to a broader demographic.
In conclusion, technology is reshaping the property investment experience in Kenya, driving efficiency, transparency, and innovation across the entire value chain. As investors embrace these technological advancements, they stand to benefit from enhanced opportunities, reduced risks, and ultimately, greater returns on their investments. By leveraging technology’s transformative power, Kenyan developers and real estate agents have more options to stand out to prospective investors.
