Proptech will cut project costs by 50%, say experts
TECHDIGEST – Experts at the recently concluded Africa International Housing Show in Abuja have stated that incorporating property technology, or proptech, can potentially cut project costs by up to 50 per cent.
They stated that avoidable costs such as agent fees can be eliminated through the use of Artificial Intelligence virtual inspection while a simple and transparent process financing platform could be utilised to build investors’ trust.
Speaking during a proptech session at the event, which was themed “Research for affordable housing policy and delivery in Africa”, the experts said proptech would unravel issues on crowdfunding, construction management, alternative financing window, cheaper marketing strategy, among others.
The Chief Executive Officer of Octo5 Holdings Limited, Babajide Odusolu, said technology had been created to fast-track the actualisation of opportunities in the real estate sector, which would reflect on product price.
He said, “Proptech is the use of applications of information technology and platform economics to boost the real estate industry. It is an interface of technology and real estate.
“These platforms using your mobile phones make it possible to scale up businesses speedily. Prop tech will make your business transparent to you and your investors.
“For instance, costs on project developments can be reduced by 50 per cent. A minimum of 15 per cent of project cost goes to compliance and design cost and 35 per cent on land and services but with the adoption proptech platforms, developers can slash compliance costs by half, simply by using technology.”
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Experts at the recently concluded Africa International Housing Show in Abuja have stated that incorporating property technology, or proptech, can potentially cut project costs by up to 50 per cent.
They stated that avoidable costs such as agent fees can be eliminated through the use of Artificial Intelligence virtual inspection while a simple and transparent process financing platform could be utilised to build investors’ trust.
Speaking during a proptech session at the event, which was themed “Research for affordable housing policy and delivery in Africa”, the experts said proptech would unravel issues on crowdfunding, construction management, alternative financing window, cheaper marketing strategy, among others.
The Chief Executive Officer of Octo5 Holdings Limited, Babajide Odusolu, said technology had been created to fast-track the actualisation of opportunities in the real estate sector, which would reflect on product price.
He said, “Proptech is the use of applications of information technology and platform economics to boost the real estate industry. It is an interface of technology and real estate.
“These platforms using your mobile phones make it possible to scale up businesses speedily. Prop tech will make your business transparent to you and your investors.
“For instance, costs on project developments can be reduced by 50 per cent. A minimum of 15 per cent of project cost goes to compliance and design cost and 35 per cent on land and services but with the adoption proptech platforms, developers can slash compliance costs by half, simply by using technology.”
Vanguard
