the debut of virtual estate agency eXp Realty is making big waves in the local estate agent market . According to Marcel Coetzee of Leadhome , “ Traditional agents in South Africa sell an average of 0.6 properties per month , or around R1m-worth of monthly sales compared to Leadhome ’ s agents historically sell an average of 3.5 properties per month , or around R5m-worth of sales per month .”
PropTech Investments to Surge in 2021 The next big thing to arrive is Virtual Reality ( VR ) with companies like V-pix360 and Matterport offering a 360-degree view with unlimited access to view property in the palm of your hand . It is a total immersive experience as if you are walking and interacting through the property . This was closely followed by Augmented Reality ( AR ) which can overlay a real-world print , product or object with your branding - enhancing your experience and brand recognition online .
While there are a lot of PropTech companies that are popping up on the radar , there are only a few that have made a significant impact in the PropTech space . South African PropTech company HouseMe formed in 2015 was a rental digital platform that connected prospective tenants to landlords with full automation of the letting process for a fraction of the discounter and unfortunately went into business . According to Disrupt Africa , South African prop-tech start-up HouseME has closed after failing to raise a funding round necessitated by the negative impact of the COVID-19 pandemic on its operations .
Gerhard Kotze Managing Director of Realnet says , “ One of the biggest drivers of the current movement away from the big cities is the desire for more living space and more opportunity to take part in family outdoor activities and the prospect of buying both these things for much less in the countryside .”
Flexible office operator International Workplace Group ( IWG ) with leading brands such as Regus , Spaces , HQ and Signature is getting massive traction in these semigration markets for demand for more flexible office space in areas such as Pietermarizburg , George , Mossel Bay and Ballito as a result of the migration of professional and entrepreneurs to smaller towns .
“ As the industry continues to build its awareness of the value of PropTech over the next year , investment will likely grow considerably in both investment in innovative solutions , but also in required new competencies and capabilities within the teams .” Sander Grünewald , Global Real Estate Advisory Leader , KPMG International .
SOURCES Cretech , Revelation , University Of Oxford Research Report , Unissu . com , Devere Group & FoRE
16 JUNE 2021 SA Real Estate Investor Magazine