Pakistan’s real estate sector is a multi-billion-dollar industry. It is one of the major stores of national wealth and continues to receive investment from different sources. It serves as the best investment option for overseas Pakistanis and foreign investors. This fast-growing sector is linked directly and indirectly to several industries. Development in the real estate industry enhances growth in various other sectors. The industry has experienced an unexpected boom due to the growing housing development projects that have hit the country’s high demand for infrastructure. However, some of its most pressing challenges can be addressed by using modern technologies that help unlock the sector’s true potential.
With the growing digitisation trend, digital transformation is needed to restore consumer and investor confidence in Pakistan’s real estate market. Currently, some technologies are already being used to embrace tech evolution in the sector, including digital mapping. A new technology that is creating a buzz in the global real estate market is Asset Tokenization technology. Tokenisation is like crowdfunding, dividing the value of a real estate investment into smaller chunks. Each fraction of a real estate asset is converted into a token and then encrypted with all the details that require ownership.
However, tokenisation implementation in Pakistan’s real estate sector will face several obstacles due to lack of management and deeds, scalability problems, and liquidity paradoxes. Also, real estate scams will hinder the tokenisation mechanism in the country. To introduce tokenisation technology in the real estate sector, we need to address these challenges. It will help transform the concept of property transactions and facilitate investors to raise money for their projects to ensure timely deliverance.
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