PropTech Tanzania: A Catalyst to Real Estate
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PropTech Tanzania: A Catalyst to Real Estate industry? By Felician Komu, PhD email: komumajengo.co.tz Paper prepared for Presentation at the 2nd Annual Conference of the Association of Professional of Tanzania 26th-27th August, Verde Hotel
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01
PropTech Tanzania: A Catalyst to Real Estate industry? By
Felician Komu, PhD
email: komu@majengo.co.tz Paper prepared for Presentation at the 2nd Annual Conference of the Association of Professional of Tanzania 26th-27th August, Verde Hotel Zanzibar<br>
Felician Komu, PhD
email: komu@majengo.co.tz Paper prepared for Presentation at the 2nd Annual Conference of the Association of Professional of Tanzania 26th-27th August, Verde Hotel Zanzibar<br>
02
Presentation Outline Introduction
4th Industrial Revolution Discourse
PropTech investments in Africa
PropTech Solutions to Real Estate Challenges
PropTech Impacts in Real Estate
Emerging Issues
Conclusions PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 2<br>
4th Industrial Revolution Discourse
PropTech investments in Africa
PropTech Solutions to Real Estate Challenges
PropTech Impacts in Real Estate
Emerging Issues
Conclusions PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 2<br>
03
Introduction Historical Account of PropTech Advent Rural Semi-Urban Urbanization Urban Renaissance Urban Dispersal 900 1350 1700 1969 Cyber systems Physiological Needs and Functions Social Needs Esteem, Status and Self Actualization PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 3<br>
04
4th Industrial Revolution Discourse What is 4th Industrial Revolution?
Started around 1969 in USA, USSR & Europe
introduction of Electronics, IT and Automated Production
Developed into an array of cyber systems around the globe
Building and extending the impact of digitization in new and unprecedented ways
Has disrupted boundaries of knowledge sets across entire economies, bringing together the physical, digital and biological worlds.
The Revolution has manifested itself in advances made in:
artificial intelligence (AI),
the Internet of Things (IoT),
Robotics,
Generic Engineering,
Blockchain PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 4<br>
Started around 1969 in USA, USSR & Europe
introduction of Electronics, IT and Automated Production
Developed into an array of cyber systems around the globe
Building and extending the impact of digitization in new and unprecedented ways
Has disrupted boundaries of knowledge sets across entire economies, bringing together the physical, digital and biological worlds.
The Revolution has manifested itself in advances made in:
artificial intelligence (AI),
the Internet of Things (IoT),
Robotics,
Generic Engineering,
Blockchain PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 4<br>
05
Source: https://www.proptechforgood.com/post/society50-proptech-sdgs PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 5<br>
06
Investment in PropTech Platforms Definition of PropTech?
“…is any technology-based innovation or platform that makes planning, managing, developing, buying/selling/renting, and the usage of real estate more efficient, cheaper and easier at any stage of a building’s lifecycle…”(Rusin, 2020)
“…Tech-driven innovation that is related to buildings and the real estate industry at large. This is tech that influences real estate in terms of design, management, transactions, investment or use…” (URERU & SA Proptech, 2019)
“… combination of recent innovation technologies and solutions that optimise the creation and management of real estate…” (Unnisu, 2019)
PropTech is redefining our practice:
How we operate and interact
Modifying traditional practices and services through technology advancements
Creating sharing economy-
Consumers begin their real estate journeys online PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 6<br>
“…is any technology-based innovation or platform that makes planning, managing, developing, buying/selling/renting, and the usage of real estate more efficient, cheaper and easier at any stage of a building’s lifecycle…”(Rusin, 2020)
“…Tech-driven innovation that is related to buildings and the real estate industry at large. This is tech that influences real estate in terms of design, management, transactions, investment or use…” (URERU & SA Proptech, 2019)
“… combination of recent innovation technologies and solutions that optimise the creation and management of real estate…” (Unnisu, 2019)
PropTech is redefining our practice:
How we operate and interact
Modifying traditional practices and services through technology advancements
Creating sharing economy-
Consumers begin their real estate journeys online PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 6<br>
07
Investment in PropTech Global PropTech investment, has increased from $2bn in 2013 to $18bn in 2018 (https://insights.thebaobabnetwork.com/50-proptech-property-technology-africa-market-map/)
Investments in software/digital solutions to products and services for the real estate industry:
Online search platforms ( e.g companies such as Digital Rental and Instant Property , which have developed online marketplace model that link landlords and tenants.
Support the construction industry e.g project management software
Start-ups in several countries that seek solutions to financing real estate development PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 7<br>
Investments in software/digital solutions to products and services for the real estate industry:
Online search platforms ( e.g companies such as Digital Rental and Instant Property , which have developed online marketplace model that link landlords and tenants.
Support the construction industry e.g project management software
Start-ups in several countries that seek solutions to financing real estate development PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 7<br>
08
Investment in PropTech Examples of Startups
Nigeria’s RealVest and South Africa’s CrowdProp provide innovative platforms for people to invest into property as an asset class.
Ethiopian company ConDigital, offers construction management software tailored to the African market, helping to improve the efficiency and transparency of the construction industry itself.
None from Tanzania in real estate – BUT (well)
Mbadala set up in 2018 as crowdfunding platform linking startups and individual angel investors – supporting micro investment TZS 50-500 per transaction
WEZESHAsasa (2021) is the first Tanzanian web based crowdfunding platform whose goal is to raise funds responding to social cause and helping young entrepreneurs to raise capital from investors to boost their business PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 8<br>
Nigeria’s RealVest and South Africa’s CrowdProp provide innovative platforms for people to invest into property as an asset class.
Ethiopian company ConDigital, offers construction management software tailored to the African market, helping to improve the efficiency and transparency of the construction industry itself.
None from Tanzania in real estate – BUT (well)
Mbadala set up in 2018 as crowdfunding platform linking startups and individual angel investors – supporting micro investment TZS 50-500 per transaction
WEZESHAsasa (2021) is the first Tanzanian web based crowdfunding platform whose goal is to raise funds responding to social cause and helping young entrepreneurs to raise capital from investors to boost their business PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 8<br>
09
Investment in PropTech Worldwide Online Platform – UNISSU set up in 2019 to facilitate digital transformation of real estate:
Hosts PropTech Events( https://events.unissu.com/ )
An increasing number of Venture Capital real estate companies
A total of 13 funding rounds totaling $7.59 million USD in 2020 in South Africa alone closed by PropTech
Africa’s PropTech ecosystem is growing with fund raising reaching an estimated ±$18M USD in 2019 (UNISSU, 2020)
Latest estimates (2020) more than 200 proptech companies in Nigeria, South Africa and Kenya alone.
Other countries such as Botswana, Rwanda, Uganda, Tanzania and Ghana are also witnessing significant growth, the overall number of companies within the sector likely to increase substantially in the next two years ( Godoy, 2020) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 9<br>
Hosts PropTech Events( https://events.unissu.com/ )
An increasing number of Venture Capital real estate companies
A total of 13 funding rounds totaling $7.59 million USD in 2020 in South Africa alone closed by PropTech
Africa’s PropTech ecosystem is growing with fund raising reaching an estimated ±$18M USD in 2019 (UNISSU, 2020)
Latest estimates (2020) more than 200 proptech companies in Nigeria, South Africa and Kenya alone.
Other countries such as Botswana, Rwanda, Uganda, Tanzania and Ghana are also witnessing significant growth, the overall number of companies within the sector likely to increase substantially in the next two years ( Godoy, 2020) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 9<br>
10
PropTech Growth Prospects in Africa Growth in Proptech Associations:
Since 2018, rapid growth in the establishment of proptech associations across Africa including;
SA Proptech, Proptech Africa, Proptech Uganda, The Nigeria Proptech Association and Proptech Kenya with many more in the process of being formally organized.
Set up of Proptech focused Incubators & accelerators:
Growing eco-systems platforms for the PropTech in Africa e.g
MEST, through its Pan-African tech incubator and hub
PropLab.Africa (Nigeria) through its development and investment programme for proptech start-ups.
Dedicated Proptech research and university programs:
Strathmore Business School (Kenya), through its Centre of Excellence in ICT Innovation
Development and tech incubator and the University of Cape Town (UCT) through its collaboration with URERU
Increasing Proptech focused events:
In 2020, API Events expanded its Proptech series setting up:
The East Africa Proptech Forum in Nairobi,
The West Africa Proptech Forum in Lagos,
in addition to the annual Africa Proptech Forum being held in Johannesburg in late September.
Traditional Africa property stakeholders getting involved in Proptech: Examples
Nedbank's partnership with API Events for the Africa Proptech Forum;
Profica’s partnership with Proptech Africa;
Broll Property Groups’ Online platform;
The Kenya Green Building Society’s new measuring tool ARC,
Pam Golding’s (RSA) acquisition of the online digital estate agency Eazi.com PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 10<br>
Since 2018, rapid growth in the establishment of proptech associations across Africa including;
SA Proptech, Proptech Africa, Proptech Uganda, The Nigeria Proptech Association and Proptech Kenya with many more in the process of being formally organized.
Set up of Proptech focused Incubators & accelerators:
Growing eco-systems platforms for the PropTech in Africa e.g
MEST, through its Pan-African tech incubator and hub
PropLab.Africa (Nigeria) through its development and investment programme for proptech start-ups.
Dedicated Proptech research and university programs:
Strathmore Business School (Kenya), through its Centre of Excellence in ICT Innovation
Development and tech incubator and the University of Cape Town (UCT) through its collaboration with URERU
Increasing Proptech focused events:
In 2020, API Events expanded its Proptech series setting up:
The East Africa Proptech Forum in Nairobi,
The West Africa Proptech Forum in Lagos,
in addition to the annual Africa Proptech Forum being held in Johannesburg in late September.
Traditional Africa property stakeholders getting involved in Proptech: Examples
Nedbank's partnership with API Events for the Africa Proptech Forum;
Profica’s partnership with Proptech Africa;
Broll Property Groups’ Online platform;
The Kenya Green Building Society’s new measuring tool ARC,
Pam Golding’s (RSA) acquisition of the online digital estate agency Eazi.com PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 10<br>
11
PropTech Solutions to Real Estate Challenges Four Key Digital Solutions
(1) Digitalization and analytics
Data digitalisation platforms to facilitate
Availability of information
Access and retrieval of data and information for investors and stakeholders
Market operations: improve efficiency of transactions
Investment in technology that upgrades data handling systems
Some progress made in Tanzania and generally around Eastern Africa on:
Investment in digital land information and management technology (GIS)
Special projects like the Integrated Land Management Information System (ILMIS)
National Land Management Information System (NLMIS) - Kenya PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 11<br>
(1) Digitalization and analytics
Data digitalisation platforms to facilitate
Availability of information
Access and retrieval of data and information for investors and stakeholders
Market operations: improve efficiency of transactions
Investment in technology that upgrades data handling systems
Some progress made in Tanzania and generally around Eastern Africa on:
Investment in digital land information and management technology (GIS)
Special projects like the Integrated Land Management Information System (ILMIS)
National Land Management Information System (NLMIS) - Kenya PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 11<br>
12
PropTech Solutions to Real Estate Challenges (2) Smart building technology
Need for cost savings in asset, property and facilities management
Need for adaptable buildings in response to health, safety and security concerns
Smart sensors such as:
occupancy detection systems to determine which space (s) in a building is over-populated
Cleaning activators ( auto-flush systems)
Green building technologies
Design and specification for efficient use of energy, water and other resources
Use of renewable energy ( e.g solar )
Pollution and waste reduction measures
Good indoor environmental air quality
Green building certification programmes ( Projects in South Africa, Kenya, Ghana, Nigeria) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 12<br>
Need for cost savings in asset, property and facilities management
Need for adaptable buildings in response to health, safety and security concerns
Smart sensors such as:
occupancy detection systems to determine which space (s) in a building is over-populated
Cleaning activators ( auto-flush systems)
Green building technologies
Design and specification for efficient use of energy, water and other resources
Use of renewable energy ( e.g solar )
Pollution and waste reduction measures
Good indoor environmental air quality
Green building certification programmes ( Projects in South Africa, Kenya, Ghana, Nigeria) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 12<br>
13
PropTech Solutions to Real Estate Challenges (3) ConTech (construction technology) innovation platforms
data-driven efficiencies across the construction process:
recording and benchmarking productivity and
facilitating the exchange of information between main and sub-contractors
Data-driven to accelerate the delivery of mass scale affordable housing projects:
bringing down overall development costs across the construction sector.
Crowdfunding of projects
Data-driven to ensure quality environment:
minimize construction waste:
Efficient ways of handling waste
Recycling waste PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 13<br>
data-driven efficiencies across the construction process:
recording and benchmarking productivity and
facilitating the exchange of information between main and sub-contractors
Data-driven to accelerate the delivery of mass scale affordable housing projects:
bringing down overall development costs across the construction sector.
Crowdfunding of projects
Data-driven to ensure quality environment:
minimize construction waste:
Efficient ways of handling waste
Recycling waste PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 13<br>
14
PropTech Solutions to Real Estate Challenges (4) Blockchain technologies
Blockchain technology is one of the most exciting innovations
BT defined as a ”…system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system…”
A blockchain a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
Tackles THE chronic land registry issues by changing the manner in which ownership of property is recorded and transferred;
Being embraced by several countries – during the last 5 years
Seso Global, a blockchain powered mortgage registry and real estate platform,
Piloted in Nigeria but stretched to South Africa – collaborated with Centre for Affordable Housing Finance (CAHF) to develop SA’s first blockchain-based property register
Landlayby, a Kenyan startup, is also developing a blockchain based property registry in Kenya, which will help eliminate cases of multiple ownership claims and fraud.
Flyt Tokenization- an initiative to allow investors to redeem and transfer shares in Flyt Hospitality Fund –
a South African Section 12J fund investing in hospitality property and apart-hotels.
Sweden decided move its land registry to blockchain in 2016, once the world’s most developed land registry (Biasolo, 2017):
facilitating digital signatures, personalized verifications, digital contracts to mitigate risk of incorrect registries and increased trust between actors.
Close interaction with public officials controls which information is public and remains private (ibidem).
Kenya: National Land Information Management System (NLIMS) aimed at streamlining land transactions in Nairobi.
Tanzania: Integrated Land Management Information System (ILMIS) piloted in Dar es Salaam ( two municipalities)
Property rights and blockchain have moved from vision to reality in different environments with different focus points PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 14<br>
Blockchain technology is one of the most exciting innovations
BT defined as a ”…system of recording information in a way that makes it difficult or impossible to change, hack, or cheat the system…”
A blockchain a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.
Tackles THE chronic land registry issues by changing the manner in which ownership of property is recorded and transferred;
Being embraced by several countries – during the last 5 years
Seso Global, a blockchain powered mortgage registry and real estate platform,
Piloted in Nigeria but stretched to South Africa – collaborated with Centre for Affordable Housing Finance (CAHF) to develop SA’s first blockchain-based property register
Landlayby, a Kenyan startup, is also developing a blockchain based property registry in Kenya, which will help eliminate cases of multiple ownership claims and fraud.
Flyt Tokenization- an initiative to allow investors to redeem and transfer shares in Flyt Hospitality Fund –
a South African Section 12J fund investing in hospitality property and apart-hotels.
Sweden decided move its land registry to blockchain in 2016, once the world’s most developed land registry (Biasolo, 2017):
facilitating digital signatures, personalized verifications, digital contracts to mitigate risk of incorrect registries and increased trust between actors.
Close interaction with public officials controls which information is public and remains private (ibidem).
Kenya: National Land Information Management System (NLIMS) aimed at streamlining land transactions in Nairobi.
Tanzania: Integrated Land Management Information System (ILMIS) piloted in Dar es Salaam ( two municipalities)
Property rights and blockchain have moved from vision to reality in different environments with different focus points PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 14<br>
15
PropTech and Impacts on Real Estate What PropTech offers:
Optimizes the way we develop, manage and use building
Providing developers and investors with a more enabling environment
Enhances funding and property investment through crowdfunding
( widening the audience e.g ‘ Women Fund Raising Groups –’UPATU’ ‘Women Fund Tanzania’ etc)
Advancing real estate market resolving :
the lack of transparency and accessibility to quality data
High cost of development, transaction & construction
Enhanced marketing through online estate agencies
Streamlining land administration through blockchain technology with its potential application to deeds registries and administration inefficiencies
Traceability of past transactions PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 15<br>
Optimizes the way we develop, manage and use building
Providing developers and investors with a more enabling environment
Enhances funding and property investment through crowdfunding
( widening the audience e.g ‘ Women Fund Raising Groups –’UPATU’ ‘Women Fund Tanzania’ etc)
Advancing real estate market resolving :
the lack of transparency and accessibility to quality data
High cost of development, transaction & construction
Enhanced marketing through online estate agencies
Streamlining land administration through blockchain technology with its potential application to deeds registries and administration inefficiencies
Traceability of past transactions PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 15<br>
16
PropTech and Impacts on Real Estate PropTech as disruptors of Real Estate ( game changer!)
‘cutting out the middleman’ by way of peer-to-peer services or products- For Example:
Airbnb which utilizes a platform to connect landlords and renters in the short-term property rental space, negating the need for rental agents
crowdfunding where funding is raised on a peer-to-peer basis on an online platform (PropTech and FinTech together!)
Leases can also take place on blockchain-driven platforms-
“… tenants are envisioned to be connected with homeowners, developers, utility companies “(D'Cunha, 2017)…” to improve fraud prevention, corruption affecting thousands of investors per year and hopes to draw high net worth individuals into the city (Dubai).
‘driving innovation in property uses’ by way of cloud working
Google Drive, Google Docs, Co-working, Virtual Meeting, Conferencing,
‘On-demand office rentals (? Hourly basis)
‘driving the efficient use of space’ by way of the internet of things (IoT), Smart Buildings and Smart Cities
providing live measurement of the usage of physical space and utilities in order to reduce wastage,
Equipping buildings with smart sensors for measurement and control for health, safety and security (either reactive, or proactive)
identifying space that could be temporarily leased on an ‘on demand’ basis.
Applying over whole city ( smart city)- largely monitoring the external environment. PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 16<br>
‘cutting out the middleman’ by way of peer-to-peer services or products- For Example:
Airbnb which utilizes a platform to connect landlords and renters in the short-term property rental space, negating the need for rental agents
crowdfunding where funding is raised on a peer-to-peer basis on an online platform (PropTech and FinTech together!)
Leases can also take place on blockchain-driven platforms-
“… tenants are envisioned to be connected with homeowners, developers, utility companies “(D'Cunha, 2017)…” to improve fraud prevention, corruption affecting thousands of investors per year and hopes to draw high net worth individuals into the city (Dubai).
‘driving innovation in property uses’ by way of cloud working
Google Drive, Google Docs, Co-working, Virtual Meeting, Conferencing,
‘On-demand office rentals (? Hourly basis)
‘driving the efficient use of space’ by way of the internet of things (IoT), Smart Buildings and Smart Cities
providing live measurement of the usage of physical space and utilities in order to reduce wastage,
Equipping buildings with smart sensors for measurement and control for health, safety and security (either reactive, or proactive)
identifying space that could be temporarily leased on an ‘on demand’ basis.
Applying over whole city ( smart city)- largely monitoring the external environment. PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 16<br>
17
Significant Impacts of PropTech Key impacts centre around
Transaction platforms,
Management platforms,
Data-driven services and
Wide-ranging digital innovation (such as blockchain and virtual reality innovations).
Key Beneficiaries discipline wise are
Property Management
transactions are becoming more efficient and transparent, particularly in the residential sector, through online estate agents and letting services.
Through innovative software solutions,
new avenues for investment and financing are available through crowdfunding platforms.
2. Land Administration
Digitization drastically improves transparency and efficiency of crucial land databases PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 17<br>
Transaction platforms,
Management platforms,
Data-driven services and
Wide-ranging digital innovation (such as blockchain and virtual reality innovations).
Key Beneficiaries discipline wise are
Property Management
transactions are becoming more efficient and transparent, particularly in the residential sector, through online estate agents and letting services.
Through innovative software solutions,
new avenues for investment and financing are available through crowdfunding platforms.
2. Land Administration
Digitization drastically improves transparency and efficiency of crucial land databases PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 17<br>
18
Block Chain in LA- Resolving challenges Identifying limits of data transparency at Operational and Strategic Levels (Eder, 2019) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 18<br>
19
TECHNOLOGY TRUTHS
Desire for market efficiency
Liquidity
Easy to Find, Finance, Buy, & Sell Property TRENDS
Shared economy
Crowdfunding
Online brokering
Big Data
Virtual Reality Facilitates Articulation of Truths into Market Trends Strategies for accelerating adoption of ProTech in Tanzania What are we grappling with ?
The 3 Ts PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 19<br>
Desire for market efficiency
Liquidity
Easy to Find, Finance, Buy, & Sell Property TRENDS
Shared economy
Crowdfunding
Online brokering
Big Data
Virtual Reality Facilitates Articulation of Truths into Market Trends Strategies for accelerating adoption of ProTech in Tanzania What are we grappling with ?
The 3 Ts PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 19<br>
20
PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 20<br>
21
Emerging Issues - Tanzania in PropTech Paradigm Digital penetration is considerably high:
Internet penetration: ~ over 40% of the population
Voice/Mobile penetration ~ over 80% (at least 42m out of Appro. 58m)
PropTech Platforms
Central Government dominance and influence in IT solutions
Government e-Payment Gateway (GePG),
National Land Information Center (NLIC)
Ministry of Land Information Systems (MOLIS),
Survey Registration System (SRS),
Land Rent Management System (LRMS)
Nyaruhuma Data System (in-house developed software)
Spatial Data Infrastructure (SDI)
Integrated Land Management Information System (ILMIS)
Limited involvement of Private Sector
Emerging Startups in non-real estate business (Nurtured by the Tanzania Startsup Association (TSA)
Total absence of Crowdfunding for real estate
(Interestingly an increasing real stock especially residential sub-market in form of gated compounds and mixed development) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 21<br>
Internet penetration: ~ over 40% of the population
Voice/Mobile penetration ~ over 80% (at least 42m out of Appro. 58m)
PropTech Platforms
Central Government dominance and influence in IT solutions
Government e-Payment Gateway (GePG),
National Land Information Center (NLIC)
Ministry of Land Information Systems (MOLIS),
Survey Registration System (SRS),
Land Rent Management System (LRMS)
Nyaruhuma Data System (in-house developed software)
Spatial Data Infrastructure (SDI)
Integrated Land Management Information System (ILMIS)
Limited involvement of Private Sector
Emerging Startups in non-real estate business (Nurtured by the Tanzania Startsup Association (TSA)
Total absence of Crowdfunding for real estate
(Interestingly an increasing real stock especially residential sub-market in form of gated compounds and mixed development) PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 21<br>
22
How is Tanzania Fairing in PropTech Paradigm 3. Awareness levels
Lack of technical workshops and forum within the Real Estate Fraternity in the country
Tanzania conspicuously missing in Africa Property Investment Summits and lags its Eastern Africa neighbors
Client Service Charters
Client Service Charters based on non-block-chained data and therefore hardly met!
Land registration process and procedures
Which Services and offered by which actor ( Municipality, Regional/Ministry of Lands)?
What are service standards?
Are the time limits set for processing such services achieved?
Are the Clients aware of the Standards, Grievances handling etc?
Development control ( planning consents and building permits)
Funding property development PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 22<br>
Lack of technical workshops and forum within the Real Estate Fraternity in the country
Tanzania conspicuously missing in Africa Property Investment Summits and lags its Eastern Africa neighbors
Client Service Charters
Client Service Charters based on non-block-chained data and therefore hardly met!
Land registration process and procedures
Which Services and offered by which actor ( Municipality, Regional/Ministry of Lands)?
What are service standards?
Are the time limits set for processing such services achieved?
Are the Clients aware of the Standards, Grievances handling etc?
Development control ( planning consents and building permits)
Funding property development PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 22<br>
23
How is Tanzania Fairing in PropTech Paradigm Web-based platforms
Low levels of digitization of real estate markets
Dominance of non-real estate professionals for online business
Low level of adoption of ‘papersmart models’ for sharing of information and facilitating consultations.
BUT
Growing prospects for Digital Transformation of the real estate mainly due to:
Emerging Startups in Digitization of allied fields e.g FinTech
Digitization of government payments system
Enhanced awareness levels on the changing business models:
Real Estate as a SERVICE as opposed to previously perceived PRODUCT and SPACE
Embracing global trends -the G5 as enabler towards SMART WORKING
Growing understanding of the changing supply systems in real estate especially rental housing sector
Outcomes of the Pandemic – Covid-19: ‘need for virtual meeting and work’ PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 23<br>
Low levels of digitization of real estate markets
Dominance of non-real estate professionals for online business
Low level of adoption of ‘papersmart models’ for sharing of information and facilitating consultations.
BUT
Growing prospects for Digital Transformation of the real estate mainly due to:
Emerging Startups in Digitization of allied fields e.g FinTech
Digitization of government payments system
Enhanced awareness levels on the changing business models:
Real Estate as a SERVICE as opposed to previously perceived PRODUCT and SPACE
Embracing global trends -the G5 as enabler towards SMART WORKING
Growing understanding of the changing supply systems in real estate especially rental housing sector
Outcomes of the Pandemic – Covid-19: ‘need for virtual meeting and work’ PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 23<br>
24
Conclusion What are the top disruptors for Real Estate in Tanzania?
Digitization of Tax payments
Person-to-Government (P2G)
Business-to-Government (B2G) payments in Tanzania.
High rate of urbanization
Overladen land administration (registry)
Evolving Mega Estate Projects
Changing Project Funding Arrangements
Emerging Property and Facilities Management Challenges
High cost of living and impacts on housing supply
Need for ‘One Step Forward and Two Steps Back’ approach
Doesn’t the past have lessons for us regarding
Valuation methodology?
Design and size of our homes?
Location and Data impulses – demographics and influence of these on real estate
What need we do to catch up with the rest of the World
Renew our affiliation memberships with regional and international organizations?
Urge our members to enroll with other professional bodies within Eastern Africa and attend webinar events?
Tanzania and AREPTA in particular NEED to awake to the realities of a new era- Digitization of Real Estate and embrace SMART BUILT ENVIRONMENT FORUM PLATFORMS PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 24<br>
Digitization of Tax payments
Person-to-Government (P2G)
Business-to-Government (B2G) payments in Tanzania.
High rate of urbanization
Overladen land administration (registry)
Evolving Mega Estate Projects
Changing Project Funding Arrangements
Emerging Property and Facilities Management Challenges
High cost of living and impacts on housing supply
Need for ‘One Step Forward and Two Steps Back’ approach
Doesn’t the past have lessons for us regarding
Valuation methodology?
Design and size of our homes?
Location and Data impulses – demographics and influence of these on real estate
What need we do to catch up with the rest of the World
Renew our affiliation memberships with regional and international organizations?
Urge our members to enroll with other professional bodies within Eastern Africa and attend webinar events?
Tanzania and AREPTA in particular NEED to awake to the realities of a new era- Digitization of Real Estate and embrace SMART BUILT ENVIRONMENT FORUM PLATFORMS PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 24<br>
25
Thank you for following PropTech Tanzania_ AREPTA 2nd Conf Zanzibar 25<br>