The start-up evolution in Pakistan is specified by various ideas and concepts that have produced positive results. While the world is experiencing 4th wave of revolution in the real sector, several sectors in Pakistan remain unexplored by technology.
Luckily, with education and the fast development of technology, people are exploring innovations and getting numerous financing opportunities and investment plans, compelling the economy to venture into various different areas. Also read a Guide to Selling and Transferring Property in Pakistan
With innovation and exploration, the country has seen a remarkable hike in start-ups spread over multiple domains, for instance, EdTech, ConTech, FinTech, etc. PropTech in the real sector has proved to be a revolutionary step in the real estate industry.
Realtorspk.com is here with a comprehensive guide on what is PropTech, and how it is reshaping the real estate in Pakistan?
What is PropTech?
PropTech is an acronym made by putting two words together; Property and Technology. It is a digital transformation merged to end the trials/issues caused by location and distance. It is a groundbreaking advancement of technology that is bringing changes in every industry of the Real estate sector. Also read our bog about What does Property inspection cover.
PropTech comprises many things related to real estate, including buying, selling, renting, construction and investments in property. It also offers effective real estate management, and transactions are done smoothly and transparently.
History of PropTech:
The advancement of PropTech is divided into three waves. Let’s have a look:
1st Wave of PropTech (1980s – 2000):
PropTech first time revolutionized the real estate market worldwide in the early 1980s. Digital transformation introduced personal computing in the industry. Sparking a chain reaction, integrating technology in the real estate market prompted the emergence of quantitative approaches to investment and portfolio management. Consequently, software companies encountered a growing requirement for superior tools in critical areas such as underwriting, accounting, and analytics.
2nd Wave of PropTech – 1.0 (2000 – 2008):
The second wave of PropTech hits the market in early 2000. In 2nd wave of technology, the mega businesses took up the model of property transactions and created several apps for e-commerce that are distributed in the online real estate market.
3rd Wave of PropTech (2008 up till date):
With the dynamics of change in real estate technology, the 3rd wave of PropTech technology brings major advancement in the industry. With the growth in the internet user, high-tech mobiles, start-ups, and tech enterprises revolutionized FinTech and helped to bring changes in data process and storage, transforming the vibrant of selling, investing and renting real estate.
How is PropTech Reshaping the Real estate Industry in Pakistan?
Recently, Pakistan’s real estate industry has seen massive changes, which have transformed the shape of the industry. Thanks to technology, all the gratitude belongs to PropTech, which has helped the revolutionary minds of real estate to bring eminent innovations and change how companies perform in Pakistan. Also read our blog How to Make a Profitable Property Investment in Pakistan.
With the increasing use of technologies, many major issues in the real estate industry have been solved, such as PropTech is massively tackling the issue of transparency, alarming rise in transaction costs and slow property sales.
Transparency is one of the major issues in Pakistan, as a few years back, real estate investment was made by cash, and it requires minimum documentation. Sometimes there is no documentation of transactions. Also checkout the list of top real estate companies in Pakistan.
Hence, investors and sellers are often unaware of the exact value of the real estate, and it leads to fraud and scams. Luckily, now real estate start-ups are using tech, and with evolution, they are addressing the issue by offering more transparent and precise information.
PropTech Services in Pakistan:
The Software and companies in Pakistan are putting their efforts into offering the best and most advanced experience for users and their participation with the increasing importance of presence in the digital world. According to the statistics, Pakistan’s property market contributes over one-third of the total GDP. Hence, it is one of the major industries of Pakistan. All you know about Excise and Taxation in Pakistan.
In the PropTech Industry of Pakistan, several portals that work with various sectors of property have surfaced. The platforms are serving successfully in real estates, such as property crowdsourcing, maintenance of real estate and listings. Let’s have a look at a few of the services offered by PropTech:
1. Real Estate Management Services:
Real estate management is one of the major domains of real estate in which PropTech is making major breakthroughs. The Property management services offer facilities like management of tenancy, rent collection and various maintenance services. It also offers virtual tours to potential tenants and investors so they can overview the properties from afar.
2. Real Estate Metrics and Learnings:
PropTech is bringing major transformation in real estate metrics and learning. It is modifying the methods to gather stats related to property and land in Pakistan. PropSure is the first online property verification mechanism in Pakistan that provides concise property information and insights, for instance, housing prices information, dynamics of the real estate market, trends, prospects and property validation. To be precise, PropTech includes verifying numerous things associated with property qualities, including; Layout plan, the status of an authorization, the total area of land, etc.
3. Crowdfunding in Real Estate Industry:
Crowdfunding in real estate is growing throughout the world with revolutions brought about by the PropTech industry. It allows the industry to combine their fortune and invest in numerous real estate projects. It aids in a variety of property endeavors, including construction, housing and real estate business.
Let’s wrap up:
That’s all for now about PropTech and the transformation of real estate in Pakistan. With the more interwinding of PropTech in real estate, the future of the real estate industry is very bright. It is not wrong to say that PropTech is providing a beautiful and practical structure to the real estate industry of Pakistan. It is offering the sector parts which are missing till now and shaping it for a better future!!