SA’s property sector ripe for digital disruption
A technology-enabled property sector has the promise of enhanced efficiency, transparency, and accessibility in South Africa, and adopting these developments will most likely result in a more dynamic and responsive industry.
Peter Clark, founder and managing partner of Redimension Capital, a prop-tech venture capital firm, tells ITWeb Africa that these technological advancements will meet the changing needs of landlords, tenants, and investors.
South Africa's property-tech market is booming as landlords rely on digital solutions to handle the residential rental sector, according to analysts.
Clark explains that given the current low levels of automation and digitisation in the property industry, there are numerous opportunities to streamline processes, improve user experience, and bring other new solutions.
“Start-ups and entrepreneurs in prop-tech have the chance to play a pivotal role in shaping the future of the property sector in South Africa,” he says.
Clark adds: “Technology is and will continue to change the way we interact with property. For those that embrace it, it will be an enabler for growth, and for the slow adopters, it’s likely to impact their current business models.”
He continues: “We are only at the start of the property industry embracing technology in South Africa. Current estimates suggest that only around 20% of processes are digitised or automated.
“This indicates a significant opportunity for growth and development. While we are behind some developed markets, the potential is immense, not only for catching up but for fundamentally transforming how we invest, manage, and interact with properties.”
Clark says digital ways of operating can help landlords save resources while respecting and protecting renters' rights.
He explains: “Technology can provide solutions for broader marketing of properties to the right audiences and creating transparent processes to onboard, manage and incentivise tenants, based on real-world behaviour, in seamless end-to-end solutions.”
Redimension Capital’s focus is to support promising early-stage, tech-driven companies, through funding and strategic guidance.
Redimension Capital is also working in collaboration with the multi-million rand EPF Tech Fund. On the relationship with the fund, Clark says: “This has helped us ideate product solutions and foster innovation for the proptech section.”