Gen Z: Overcoming Challenges and Disrupting Real Estate Industry Norms

Generation Z, often referred to as “Gen Zers,” is making its mark in the African real estate market, facing unique challenges and bringing about disruptive changes that reshape the industry. This article explores the challenges faced by the Gen Z demographic and how they are defying norms to drive transformation in the way real estate is experienced and conducted. We will delve into the obstacles encountered by Gen Z and explore the innovative strategies they are employing to overcome these challenges

CHALLENGES FACING GEN Z IN REAL ESTATE:

There are various myths and barriers that have limited people from entering the real estate space in Africa. However, the audacious and culture-redefining Gen Z generation, also known as the “Soro soke generation” (meaning “Speak louder” in West Africa, Nigeria), has come to disrupt the industry. With a rapid influx of young, talented, and visionary disruptors (affectionately known as “coconut heads”) making their mark in the industry, individuals like Wale Adeleke and Harrison Raphael of DEK Global Ltd are emerging to challenge the norms and make real estate accessible to everyone, regardless of age or social status. Some of the challenges that have hindered the entry of Gen Zers into these spaces include:

The Cultural Age Gap: The real estate industry has traditionally been associated with an older demographic, leading to a cultural age gap that hampers the participation of younger individuals. Gen Z faces the challenge of breaking through this age barrier and gaining recognition for their abilities and potential in the industry. They aim to challenge this misnomer by not only investing in the space but also registering their voices and taking their place at the helm of affairs, challenging biases from the root.

Traditional Bias: The perception that real estate investing is limited to a select few with a significant net worth or specific social backgrounds creates traditional biases that exclude many Gen Z individuals from participating. Overcoming these biases requires challenging the established norms and advocating for a more inclusive and accessible real estate market. Gen Z has harnessed the power of social campaigns, informative discussions, the pursuit of financial freedom, and leveraging the digital space. They have pioneered a new way to interact and transact in the real estate space.

Disruption and Transformation by Gen Z in Real Estate:

As disruptors, Gen Z has entered the real estate industry with fresh perspectives and approaches. They have introduced innovative practices such as:

Technological Innovation: Having grown up in the digital age, Gen Z is well-versed in technology and recognizes its potential for transforming industries. They leverage technological innovations like virtual reality, artificial intelligence, BIMs and online platforms to revolutionize the real estate experience. Virtual property tours, digital property management systems, and online marketplaces are changing how properties are showcased, managed, and transacted. Gen Z has even pioneered revolutionary ideas such as using blockchain technology for payment and land documentation transfer, signifying that the rules are changing rapidly.

Collaborative and Alternative Investment Models: Gen Z embraces collaborative and alternative investment models to overcome financial barriers. Crowdfunding platforms, real estate investment trusts (REITs), and joint ventures allow individuals to pool resources, share risks, and participate in real estate investments with lower capital requirements. This collaborative approach challenges the notion that substantial personal wealth is a prerequisite for entering the real estate market. Also leveraging the global community to transact and source foreign investment

Focus on Sustainability and Impact: Gen Z’s deep concern for sustainability and social impact is driving a shift towards environmentally conscious real estate practices. They demand energy-efficient buildings, sustainable materials, and green infrastructure. Additionally, they prioritize investments that align with their values, such as affordable housing initiatives, communal living, and urban revitalization projects. This focus on sustainability and impact drives positive change and contributes to the creation of a more sustainable and socially responsible real estate industry.

Digital Empowerment and Access to Information: Gen Z’s digital literacy and access to vast amounts of information empower them to make informed decisions. Online research, data analysis, and social media platforms provide them with comprehensive insights into market trends, investment opportunities, and industry dynamics. They can circumvent traditional information asymmetry, challenging the notion that real estate investing is exclusive to a select few. As the saying goes, “Learning is the lifeblood of personal growth and intellectual development.”

Generation Z is overcoming the challenges of the cultural age gap and traditional biases in the real estate industry. They are disrupting the status quo and driving transformation by leveraging technological innovations, embracing collaborative investment models, focusing on sustainability and impact, and harnessing digital empowerment. Gen Z is reshaping Africa’s entire real estate landscape through their ingenuity, determination, and commitment to positive change. This vision aligns with the mission of DEK Global Properties Ltd, which aims to bridge biases and nurture the next generation of successful investors and industry leaders. We are dedicated to delivering excellence and value to our investors while creating seamless real estate transactional experiences for the Gen Z community and beyond. The industry must recognize and embrace their contributions to foster a more inclusive, technologically advanced, and socially conscious real estate market for the future.