NIGERIA: PROPTECH STARTUPS EXPERIENCE 70% DECLINE IN SEED FUNDING IN Q4 2023, ACCORDING TO BUYLETIVE PROPERTY PRICE INDEX REPORT
buyletlive, an online real estate marketplace, has released the second edition of its annual “Nigeria Property Price Index Report”, according to Techeconomy.
The Nigerian’s first AI-powered real estate portal, facilitating swift transactions for real estate buyers and sellers, launched the report today.
The 38-page document analyzes price movements in Nigeria’s real estate market in 2023 and provides insights on current issues.
In the foreword, Engineer Ola Daramola, the group CEO, acknowledged that 2023 posed significant challenges for the global economy, including the Nigerian real estate market.
He highlighted BuyLetLive’s resilience amidst unprecedented challenges faced by businesses in the industry.
Ola mentioned the company’s expansion of its engineering team in 2023, the growth of property inventory on their platform, and its recognition by the Africa Housing Awards as the best online real estate portal of the year.
Gbenga Osowe, CEO at BuyLetLive, emphasized the need for the report in the industry, referencing a PWC publication estimating dead capital in Nigeria’s real estate market at $900 billion.
He highlighted the loss of value, especially within residential and land asset classes, due to market opacity. Addressing this from a private sector perspective requires concerted market research efforts.
Martin Uche, leading the research team at BuyLetLive, noted an overall spike in property prices, particularly a double-digit increase in residential real estate prices nationwide.
Source: Proptech statistics in Nigeria 2023
Rising costs of building materials, FX volatilities, and operational costs were cited as contributing factors. Regarding the commercial market, Martin mentioned its struggle since 2018, attributing it to oversupply, shrinking purchasing power, and decreasing occupier pool.
This trend was particularly evident in Lagos and Abuja, especially in the market for large-scale prime retail and office projects.
The report also highlighted a slowdown in Proptech funding in Nigeria. Martin observed that Proptech, once favored by investors, faced challenges in 2023 due to global financial market volatility.
While Nigerian Proptech startups raised over $7m in funding in 2022, the funding value dropped to less than $2m in the last quarter of 2023, representing a significant decline of over 70%.
Despite these challenges, the report expressed optimism for the upcoming year.
BuyLetLive connects property seekers with verified real estate agents, developers, and homeowners, offering advisory and media promotion services to developers seeking visibility and leads for their developments.
The company’s robust digital ecosystem enables transparent interaction among stakeholders. Plans for new products and services in the coming months align with its mission to revolutionize Nigeria’s real estate industry through technology.
Source: Techeconomy
Source: Techeconomy
