House building has been set for a revolution across Africa, but progress is looking slim. The Africa Report rightly asserts that more is needed to help shake up the African housing sector than just bricks and mortar. Making change and getting the property market back into a healthy place has become the mission of property tech (proptech) ventures, and surging investment has helped to start getting the industry going again.
Driving forward mortgages
The African mortgage economy has been in freefall. Figures concerning South Africa, analyzed by Business Tech, show a 62.5% mortgage rejection rate in the country. Getting people into a better state of affairs and building awareness of eligibility rules has been the mission of proptech, and is seen in the expansion of refinance calculators and mortgage eligibility tools online. Giving the knowledge out of who is eligible for financing, and how they can procure appropriate credit, is the first and most important step. Proptech is also helping to provide the boost that would-be homeowners need, in the form of new property.
Africa needs more homes, and better quality homes to boot. Sourcing good quality materials is difficult in the current global trade environment, with countries the world over looking to boost production. Africa News highlights the emergence of 3D printing tech as one factor driving improvements in the industry. Specifically, 3D printing tech combined with establishing house-building principles is leading the charge towards better quality housing that can be reproduced at a higher rate.
A key factor in any housing overhaul is the need for affordability. Africa faces a quality housing shortage, and any improvements cannot be made without full inclusion of the wider community. The Centre for Affordable Housing Finance Africa asserts that proptech can play a key role in making that a reality. Digital solutions are often more cost-effective and accessible. Putting tech at the heart of the property journey, from construction to purchase – or rent – will reduce overheads across the board. There’s also the matter of crime and fraud reduction, which is being accomplished by the use of blockchain tech in Nigeria’s housing industry.
Bringing costs down, bringing productivity up, and bringing in greater numbers of Africans. This should be the wider goals of property markets across the continent, and through tech, these goals are being driven forward.