The Effect of Technology and Innovation on the Property Development Process

Author: Jide Adekola

First, I have to establish what property development, architecture and real estate really means. So;

What is Property Development?

Property development includes a range of activities from the purchase of land, development of facilities and buildings to meet customers’ requirement. It also involves either the lease or sale of the land or properties upon completion.

What is Architecture?

Architecture is the art or practice of designing and constructing buildings and can also be defined as the complex or carefully designed structure of something.

What is Real Estate?

Real estate can be referred to as land and anything fixed, immovable, or permanently attached to it. This includes buildings (or any structure), appurtenances, fences, roads, improvements, fixtures, shrubs and trees (but not growing crops), sewers, structures, walls and utility systems. Title to real estate normally includes title to mineral rights, surface rights and air rights which can be sold, bought, leased or transferred separately or together.

A fusion of the above 3 definitions is essential when referring to innovation and property development in any built environment. Just as phones, cars, televisions and computers have developed in innovation over the years, property development products and processes should follow suit. We live in a time when technology has brought the world to the palm of our hands, creativity is at our fingertips and ideas can flow without going into a library to hibernate. Better still, exposure can be achieved without necessarily travelling the world.

Gradually, a wind of change has occurred in the real-estate skyline in Nigeria and Lagos in particular, as the current generation of professionals in the built environment are more exposed and willing to adapt to change with innovative designs and unique development projects that are exceptional on a global scale.

Architects and well-grounded builders are beginning to task and challenge the status quo and this, in turn, has resulted in better designed structures and a general culture of thinking entirely outside the box. As this has gradually been embraced, a more privileged cadre (property developers) has even a better opportunity to expand this innovation and at a faster time. Consequently, this creates job opportunities, provides training and creates value for the immediate environment and nation at large.

In view of the above, we still have some downsides as innovation, creativity and thinking outside the box has its advantages and disadvantages because it normally doesn’t end up being cost effective/affordable. Typically, presumed to be applied only to the opulent and well to do. However, it takes a lot more research and
innovation in creating models and frameworks to achieve affordability in this entangle.

“Architects and well-grounded builders are beginning to task and challenge the status quo and this, in turn, has resulted in better designed structures and a general culture of thinking entirely outside the box.”

In another vein within the real estate industry, innovation and technology have in no small way aided the sales and marketing of products as apps like Facebook, Instagram, Snapchat, Twitter and LinkedIn have us access millions of customers all over the world in real time. We can influence and push our brand awareness by posting filtered images and videos of our products and posting out on a global scale.

However, on the flip side, we must not forget that the essentials to bring the innovative 3D representations and marketing images to life, takes a lot of hard work, determination and processes. Typically, the reality of the completed works compared with the images of the proposed are a far cry from each other. For a project to be called
‘wonderful’, there are certain processes that would have made it work and these processes should be held in high esteem by professionals in charge. Most developers will rather the easy way out, but these habits have a way of rearing its ugly head much later into the project. This is the essence of using experienced professionals and it is important to assist the new generation of architects and professionals to understand the advantage of experience and the art of implementation.

Nevertheless, the risks of merging innovation and property development can be reduced through collaboration amongst the following stakeholders:

1. Land owners/government allocated lands
2. Suppliers/vendors
3. Contractors
4. Financial institutions
5. Cooperatives (offtakes)
6. Real estate agents
7. Service providers
8. Government agencies
9. Property developers
10. Professionals

A simple collaboration amongst the property developers, professionals, off-takers, contractors and suppliers/vendors with the same goal and mindset can go a long way. Below are processes involved in the development process and the professionals involved. (Please note that this is in no order and some stages can be overlapped or run simultaneously).

• Identifying and analysing suitable land fit for use (land surveyor, architect, estate surveyor, lawyer).
• Land search (lawyer, government agency).
• Soil test Investigation.
• Design and documentation (architect, structural engineer, mechanical/electrical engineer).
• Cost analysis (quantity surveyor).
• Project finance (mortgage banks, investors, private funds, commercial banks, partnership).
• Approvals (government agencies).
• Site preparation.
• Construction, infrastructure development (main contractor, sub-contractor, vendors, project manager and other professionals).
• Integrity tests (government agencies).
• Sales and marketing (estate surveyors, sales agents, professional marketers).
• Hand over/defect liability period (main contractor).
• After sales services (facility manager, property manager).

Professionals will fill in the gaps to support innovation with experience. It is important that we identify strategic partnerships and identify your strength and place in the development processes. This will help identify what you really need to succeed and areas you can apply the same to effectively solve problems and ease the process as a whole.

Basically, experienced professionals should get support and training on the swift changes in technology and innovation. While the new generation of professionals should also value experience and actual tutelage under experienced professionals in their field, in order to create a balance in the system and encourage sustainability.

Remember a building/development is a lifetime investment unlike a car or fancy gadgets. It is essential to get the process right as mistakes can be very costly.

Jide Adekola is one of the co-founders of Homework Development and a registered architect. He has gathered hands-on experience in architectural consultancy, project management and construction with some of the topmost architectural and real estate firms in the country. He holds two MSc. degrees in property development from Birmingham City University, UK and architecture from the University of Lagos.

Featured in Prestige Nigeria Issue 2. Vol. 4 2019