WestProp turns to tech in property development
BUSINESS REPORTER
Real estate developer, WestProp, says it has positioned itself as a leader in the use of technology in its pipeline projects.
The real estate developer is in the market to raise US$30m through an initial public offering to finance its pipeline projects that include Millennium Heights, Pokugara Residential Estate, Millennium Office Park, The Mall of Zimbabwe, Pomona City, Warren Hills Golf Estate and a 60-ha eco-park village to incorporate weirs and active and passive recreational amenities including sitting areas, running and cycling tracks.
WestProp said it has tapped into PropTech —the use of technology to enhance the real estate industry.
“This technology is being implemented in WestProp’s lifestyle communities to offer residents an array of benefits, which include digital security systems, access control, home automation, energy-efficient lighting and renewable energy sources,” the company said in its prospectus.
In January WestProp CEO Ken Sharpe told Africa.com that the use of PropTech makes planning, selling, managing, renting, developing and usage of real estate more efficient and cheaper than ever before.
“PropTech includes building technology, real estate financial technology (Fintech), data digitalisation and analytics, construction technology (ConTech) and Blockchain technology among other elements,” Sharpe said.
The executive said what he realised when studying at Harvard University was that Africa was far behind the developed world when it comes to all tech innovation and in reality “we still live in the carbon fuel era whereas they are all in the data era”.
“Therefore companies overseas have taken the leading role in the rapid growth of PropTech in Europe, Asia and America. They have been heavily investing in either developing their own in-house technologies or investing in tech startups and technology with SAAS products powering their businesses,” he said.
A report by Grand View Research showed that the global PropTech market size was valued at US$25.145bn in 2021 and expected to expand at a compound annual growth rate of 15.8% from 2022 to reach US$94.2bn in 2030.
The growth will be driven by the increasing adoption of several cutting-edge technologies, such as the Internet of things, machine learning, artificial intelligence and virtual reality across the real estate, it said.
“Additionally, adopting such technologies helps streamline data management and simplifies massive property management operations. Furthermore, AI helps in understanding and recommending client preferences. Artificial intelligence in the real estate sector can help fine-tune advertising efforts by spotting trends and delivering actionable insights to clients and customers. The growth will be driven by the increasing demand for property management software and asset management software,” the report said.
Grand View Research said the PropTech market is expected to be driven by the increasing adoption of big data analytics owing to the benefits offered, such as helping in increasing overall productivity, making better decisions, improving customer service, and increasing overall revenue.
“Property investors are profiting from the insights provided by big data solutions, ranging from understanding the best investments to marketing and selling. Additionally, most companies are inclined to use big data techniques to differentiate themselves and stay competitive in the business,” it said.
WestProp said it would use the Smart City App in its projects.
A smart city is a place where traditional networks and services are made more efficient with the use of digital solutions for the benefit of its inhabitants and business.
“WestProp’s lifestyle communities feature a network of sensors and data-driven systems that provide real time information on everything from traffic to air quality. Residents can access this data through a central dashboard, giving them a better understanding of the environment around them and enabling them to make informed decisions,” the real estate developer said.
