TECHNOLOGY
The escalating significance of Proptech within the industry is underscored by its staggering projected market value - poised to reach $ 86.5 billion by 2032 . Closer to home , however , South Africa ’ s Proptech adoption has lagged and is hindered by entrenched analogue processes and user resistance .
REdimension Capital , a pioneering investment firm dedicated to reshaping the future of South African real estate , is pleased to announce the first close of its inaugural fund , the REdimension Real Estate Technology and Sustainability Fund . This unique fund , which has received support from leading , forward-thinking stakeholders in the real estate sector , will focus on investing in early-stage innovative technology companies that deliver demonstrable improvements in the way property is developed , managed , and engaged with .
By strategically aligning with sector stakeholders , the fund has built an ecosystem of mutual value , aiming to deliver both investment and operating returns while accelerating technology adoption and driving sustainable outcomes .
" Embracing Proptech is essential to our industry ' s global competitiveness ," explains Jackie Smith , Head of Buyers Trust , a cutting-edge bank-hosted deposit solution for homebuyers . “ These tools help to streamline processes , boost efficiency , cut costs , improve the customer experience , enable data-driven decisions , and reduce our carbon footprint ."
Widespread adoption hampered by infrastructure limitations . Realising these benefits requires full industry buy-in , a challenge that persists in South Africa . In 2022 , a report compiled by REIdimension for the South African Property Owners Association ( SAPOA ) conducted a survey on property businesses which revealed that 52 % of surveyed organisations that did not have a specific technology or innovation strategy in place . In addition , 83 % of respondents shared that more than half of their processes were still manual .
" South Africa ' s private sector is resourceful , but widespread technology adoption hinges on a robust digital infrastructure ," says Smith . “ The challenge of ongoing loadshedding interrupting internet connectivity and device power supply means that Proptech tools
61 OCT / NOV 2023 Real Estate Investor Magazine