Pulse54: Africa’s real estate goes digital
PropTech startups are reinventing real estate across the continent, attracting global investors, and creating new paths to property ownership and investment.
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Welcome to Pulse54, a bi-weekly newsletter by Daba for smart people curious about Africa.
In this edition, we explore how technology is democratizing access to one of Africa's most valuable asset classes and why global investors are taking notice.
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Now let’s dive in.
Egypt's Nawy, a fast-growing property technology startup, just secured $52M in a landmark Series A funding round.
The investment, led by Partech Africa, highlights the massive potential of PropTech companies solving complex challenges in Africa's property markets.
For decades, buying property in Africa meant navigating a maze of personal networks, commission-driven brokers, and opaque market dynamics.
Nawy's approach represents a radical departure from this traditional model.
The platform combines property listings with brokerage services, creating a transparent ecosystem that democratizes real estate transactions.
It also offers fractional ownership products that allow middle-income users to invest in property with as little as $500.
Their "Move Now Pay Later" mortgage product addresses another critical challenge, offering installment plans in a market where traditional bank loans are rare.
The numbers tell a compelling story.
Nawy has grown its gross merchandise value from $38M in 2020 to over $1.4B in 2024, despite significant currency challenges in Egypt.
But this growth isn't just about technology—it's about solving fundamental market inefficiencies.
And, the company's success is part of a larger trend.
A Market Ripe for Innovation
Across Africa, technology startups are reshaping how people buy, sell, and interact with real estate.
As of 2022, Africa had over 200 PropTech startups, most of which emerged in the last five to seven years.
Nigeria led with an estimated 43% market share, followed by South Africa at 23%.
Different countries are seeing unique PropTech innovations.
In Ghana, blockchain technology is being used to create secure digital land registries.
Kenya is using drones and satellite imagery to map urban areas and understand informal settlements.
South Africa has emerged as a PropTech hub, with virtual tours and online property platforms becoming increasingly common.
These platforms are not just changing how properties are bought and sold.
They're providing critical data that can help developers, investors, and policymakers make more informed decisions and capture a huge continental market.
Africa's population is projected to reach 2.5B by 2050, creating unprecedented demand for housing and real estate services.
PropTech is positioned to play a crucial role in meeting this demand, offering solutions that are more accessible, transparent, and efficient than traditional models.
The investment landscape is also evolving.
While PropTech remains a small slice of Africa's startup ecosystem, the potential is enormous.
Currently, it accounts for only about 0.3% to 0.6% of venture capital funding in Africa, compared to 5% globally.
But the market is growing fast.
The global PropTech market is expected to grow from $18.2B in 2022 to $86.5B by 2032.
Africa, with its rapidly growing population and increasing urbanization, is positioned to be a key growth market.
Investors are taking notice.
Nawy's $52M round is just one example of growing interest.
The fast-growing technology sub-sector has seen several multi-million dollar deals in the past few years.
As Partech’s Tidjane Deme noted about Nawy, these companies are "building the foundation for a modern, tech-driven real estate experience."
Despite the promise, PropTech in Africa faces significant hurdles.
Limited access to information, financing challenges, and infrastructure constraints remain substantial barriers.
However, these challenges also represent opportunities.
Power supply issues in countries like Nigeria and South Africa have pushed many startups to focus on energy-efficient property management solutions.
With continued innovation and investment, PropTech could be the key to unlocking Africa's real estate potential.
That’s it for this week.
You can also download the Daba app to access vetted investment opportunities in African VC - from exciting early-stage startups to professionally managed venture funds.
Until next time!