In the last decade, Pakistan has seen tremendous growth in the demand for modern urban infrastructure, i.e., sprawling housing schemes, offices, plazas, and leisure lifestyles. The real estate market is playing a critical role in economic growth. As the construction sector contributes up to 380 billion PKR in GDP, and assets of the real-estate sector contribute 60 to 70% of the country’s wealth. After agriculture, real estate is the second-largest sector that generates employment. Real estate is the go-to investment option for the world, and it is no different in Pakistan. This is because it is a tangible asset with intrinsic value due to its limited supply and ever-increasing demand. Growth through innovation in real estate is the primary need of the hour.
As per the World Bank’s report, the increase in foreign direct investment is directly linked with the worth of the real estate industry. This sector stimulates the other allied industry such as timber, cement, sanitary, steel, furniture etc. Pakistan is facing a massive shortage of homes; as per the World Bank, the country is facing a deficit of 10 million housing units. The real estate sector of Pakistan is in the development phase as many companies are trying to introduce new ways and techniques to improve services and reduce malpractices. Due to a lack of regulation, there are several challenges that the real estate sector is facing, such as wrong property pricing, lengthy procedures, lack of information, undocumented taxpayer, lack of authentic property listing systems etc.
The introduction of technology can help mitigate the influx of fraudulent activities observed in the sale and purchase of land. Technology like Web 3.0 will provide further impetus to the sector. Moreover, data analytics, digitisation and inclusive property valuation methodology will help mitigate theft and fraud in the real estate sector. In developed countries, prop tech has been introduced, which allows for robust alignment between real estate and technology. The property technology includes AI and machine learning, virtual reality, the Internet of things, and modern and smart appliances.