PropTech & The South African Residential Real Estate Sales Process: Exploring Technology- Enabled Streamlining and Technology Usage

Abstract

The South African real estate industry is increasingly developing and exploring technological innovations and its applications. However, technological applications to the traditional residential real estate sales sector remains unexplored. Challenges have been documented relating to the the inefficiencies of the residential real estate sales process which have highlighted an opportunity to explore how property technology (PropTech) can be applied to streamlining the process and overcoming common challenges. This research explores how PropTech solutions may be used to enable streamlining of the South African residential real estate sales process. Furthermore, this research aims to understanding the factors that influence adoption of new technology. In the South African real estate context, the study deployed a qualitative based research approach, conducting semi-structured interviews with clients (past residential property buyers and sellers) and professional residential sales property practitioners (real estate agents). The findings revealed that many PropTech solutions, when applied effectively and along the sales process can contribute towards streamlining the process. Additionally, the findings highlighted the role of property practitioners in influencing the use and trust of PropTech Solutions. South African regulatory limitations, as well as financial costs were also found to be inhibitors of adoption. These insights aimed to contribute to the growing body of literature in real estate technology in South Africa.