Real estate dealers are banking on electronic commerce and online platforms to drive up revenue, a new report has revealed
Managing Director for Jumia House Kenya, Dan Karua notes that “corporates, clients, agents among others are now able to optimize their business strategies, and in turn maximize on the various opportunities available in the industry”.
Kenya for instance, is a highly-favored location for real estate investors, specially attributed to its fast-growing economy, “increased government investment, and a booming property market attributed to an increasingly growing middle class that has home ownership as a priority and a necessity, rather than luxury”, notes Karua.
Data by the Kenya National Bureau of Statistics shows that by the end of third quarter 2015, the real estate sector contributed approximately 8 per cent to the country’s GDP; with a year-on-year growth of 5.4 per cent. This rates the industry as one of the fastest growing sectors in Kenya, contributing immensely to the growth of the entire economy. Further, the impact has also been contributed by the high rate of internet penetration in the country, with 74 per cent of Kenyans having internet connection. The digitalization of the Real Estate is however being deferred by several real estate companies, and investors that are yet to embrace the integration of technology and innovation in the real estate business.
Online real estate marketplace Jumia House, is among companies taking lead in leveraging on e-commerce to drive the Real Estate sector in emerging markets especially in Kenya. The company’s MD goes on to reiterate that “staying atop on technology and market changes is a major prerequisite to any business success, while the lack of it is a likely cause of failure among companies.”
Whether at the company or industry level, developing countries should go beyond the status quo if they are to beat universal competition brought about by globalization. This, says Jumia, will go a long way in capitalizing on the high number of foreign investments in the African Real Estate marketplace, while at the same time focusing on individual countries’ market demands.
It has since emerged that evaluating tools such as ‘Market Maturity’ is one of the ways that can close the gap between investment opportunities, and the small scale of Real Estate investment activity in developing countries.
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