The role of technology in real estate has revolutionized the property fads in Pakistan. The real estate and property system is ancient and dates back to the British Raj era. However, the growing technological innovations and developments have altered how we manage property in Pakistan.
Including technology in any sector makes the procedures more efficient, transparent, and hassle-free. Similarly, the technological innovations in the real estate business made buying and selling a house more self-evident, convenient, and competent.
ROLE OF TECHNOLOGY IN REAL ESTATE
This blog will cover the challenges the real estate market had to come through before the property technology. Next, we will introduce the role of technology in real estate market is used to advance the real estate sector in Pakistan. So, let’s start our journey towards the real estate technological developments and progress achieved so far!
CHALLENGES BEFORE THE PROPERTY TECHNOLOGY
Before introducing real estate technology, the buyers and the sellers of a property had to face specific challenges settling for a disadvantaged price. Let’s discuss these challenges first!
1. ASYMMETRIC INFORMATION
Before developing real estate agents and the development of a proper Customer Relationship Management (CRM), the buyer and sellers had little or no information regarding the houses they wanted to buy.
Moreover, they faced specific difficulties in finding a buyer for their houses, resulting in a mismatch between the buyers and the sellers. Primarily, people relied on the referrals made by their family members, neighbors, and friends.
If somebody needs an emergency selling or buying a place, he will accept a too high or too low rate, ultimately due to insufficient information about the potential buyers.
2. DIFFICULTY IN PROPERTY VALUATION
The second problem was in the correct valuation of the property. The buyers had to visit the patwaris in their local areas, who estimated and used to set an accurate price of your home, residential or commercial places. Similarly, they could not find a house that could match their budget and requirements on time.
The inaccurate valuations and incorrect prices ultimately led to regrets and losses when they discovered the accurate price. People used to buy or sell a house based on their estimations and judgments, neglecting the actual worth of their house.
3. LACK OF CREDIBILITY
The third challenge was the credibility, honesty, and worthiness of the seller or the buyer. Similarly, neither buyer nor seller had proof of the personal information or authentication to trust each other. They used to sell a property from a person they knew personally or through a reference.
This is why a property revolved around a particular place or among certain people who lived near the place or knew the person via the credible person. People used to buy a property by being overly conscious over the documents of registry and fard.
4. LACK OF PROPER DOCUMENTATION
Lastly, the properties without proper documentation failed to sell as the buyers were not prepared to purchase and invest. As a result, real estate worth millions and billions faced challenges in selling at a higher price.
On the other hand, the absence of these documents, i.e., registry, fard, and other property ownership documents, led to illegal land acquisitions in the past. Interestingly, there were some cases where people inherited land, but they were not aware of the exact location of that property due to insufficient and improper documentation.
PROP TECHNOLOGY TRANSFORMED THE REAL ESTATE SECTOR
This part will introduce some intriguing technologies that revolutionized the real estate and properties sector in Pakistan. Let’s discuss the role of technology in real estate in detail!
1. REAL ESTATE ANALYTICS
Real estate data analytics helped the buyers and sellers find a suitable house in their budget range and at their desired location. As Commercial Real Estate (CRE) helped the real estate agents collect the leads from the user data and identify the market demand and supply ultimately.
Similarly, real estate marketing companies can use this data to predict future market trends by observing what people are looking for and why they want to sell their property. Similarly, if you want to buy a house, you can effortlessly search for it by using real estate data analytics.
2. CUSTOMER RELATIONSHIP MANAGEMENT – CRM
Customer Relationship Management (CRM) software manages leads, client data, property documents, and other essential data in just one place. The realtors can access this data from your home, office, or remote place.
You can manage your real estate business and remain up-to-date with the latest trends in the marketplace. You can remain cognizant of all the new properties listed on real estate websites without visiting those websites time and again, as this intelligent software will automatically update the data.
3. VIRTUAL REALITY AND REAL ESTATE
The tenants who want to buy a house can view a place using VR technology. This mind-blowing technology introduced a significant shift in how the real estate market works and the properties sold. The buyer put on a headset and VR viewer.
Real estate agents can quickly expand the base of their customers abroad by facilitating a virtual tour of many places at a time. So, this digital development equally transformed the realtor’s business and real estate market.
4. PROPTECH, CRETECH AND RETECH
PropTech is a game-changer in real estate as it allows the sellers and buyers to own a property digitally. Graana.com and Dao PropTech have come forward to provide a digital platform where the valuation of the property and selling procedures are transparent and documented.
A team of experts helps the buyers and sellers find their dream home and invest in a property project seamlessly and conveniently. On the other hand, the government has digitized the property system where you can check your property record online within seconds.
Finally, Pakistan’s technological developments and startups in Pakistan have revamped the real estate market tremendously in Pakistan. Before the tech developments, real estate and property ownership were obsolete and lethargic.
The lack of information, credibility, and the patwari system delayed the process to reach a deal. However, the technological innovations and the technological know-how accelerated the property deals. Now, people buy and sell properties within days, instantly covering all legal and financial requirements.
Lastly, this informative and decision-oriented technology helped the realtors grow their business with clients’ increased credibility and trust. Undoubtedly, the role of technology in real estate evolution is no less than a miracle in Pakistan.