Real Estate has lagged in jumping on the bandwagon of adopting disruptive technologies. It belongs to a slow-moving asset class. The traditional image of real estate is in direct contrast to the recent buzz surrounding real estate technology, or ‘PropTech. Proptech is the technology used in the real estate market for better performance and effectiveness. It has gained a lot of traction in recent years, all for the right reasons.
Proptech has invaded the global market and has made its way into the Pakistani market. Despite being behind the global market in adopting the latest disruptive proptech, the Pakistani market is undoubtedly gaining momentum.
The potential for a real estate revolution in Pakistan grows as more individuals become acquainted with advanced technologies. The stakeholders have been pushed to embrace innovative proptech techniques due to technological advancements in real estate, architecture, and financing. These new technologies offer a savvy solution to the real estate industry’s major concerns about accountability, forgery, and information management.
Graana.com presents a comparison of proptech trends between the Pakistani and global market.
Blockchain technology is being used or under experimentation in a lot of countries. The blockchain is a chain of cryptographically encrypted blocks carrying specific data. Because the downstream blocks authenticate the upstream payments, the data recorded inside a blockchain cannot be modified after a transaction. The blockchain acts as a decentralised database for all operations. Users can conduct transactions using this technology without the necessity of interference.
Fiscal transfers, transaction payments, funding, and various uses are all possible through it. Pakistan has not incorporated this technology into its total capacity in the real estate market. There are different potential uses for blockchain in the real estate business, spanning the whole property value chain. If employed, many issues regarding transparency, efficiency and centralised communication can be solved.
A practical and mass-appropriate implication still needs to be developed in this area in Pakistan. Smart Contracts make it possible to establish rental and buy contracts provide and assess the essential data for real estate valuation. It maps real estate data and stores sensitive data. This helps minimise fraud, breach of information and legal issues that may arise later. It also authenticates the details more securely than traditional contracts.
Artificial intelligence (AI)
Artificial intelligence has paved its way quite well into the real estate market. A typical AI application used in Pakistan is chatbots on real estate company websites. It allows saving time by swiftly replying to potential clients and addressing questions.
Also, many organisations are employing automation in conjunction with a CRM system to reply to leads quickly. In this way, a more regulated and efficient manner is ensured. This also allows them to manage employees’ workload and utilise the time saved on and on a higher-priority task. AI enables to generate more leads and better conversion rates. But there is a lot of potential that need to be tapped in this sector. AI can provide a massive range of opportunities if utilised to its full potential.
The incorporation of IoT has revolutionised the real estate industry worldwide. It is the practice of incorporating sensors and technologies into a wide range of products to make people’s lives easier and more efficient.
Smart homes are also an application of IoT that is making its way into the Pakistani market, and we are witnessing projects with IoT technology incorporated. It makes smart living possible. The environmentally conscious buyers of today prefer choices that have the most negligible environmental impact and encourage a tech-driven way of life. This is a fantastic way forward for a sustainable future.
Proptech has undeniably changed the industry. However, there is still a long way before fully accepting revolutionary technologies, particularly in the Pakistani market. This reveals not only a huge gap but also a ripe market opportunity just waiting to be discovered.