Technology In The Evolution Of Real Estate
Is technology playing an important role in the evolution of real estate?
The role of technology in real estate has transformed Pakistan’s property industry.
The property and real estate systems are century’s old, dating back to the British Raj period. However, technological advancements and innovations have changed the way we manage property in Pakistan.
Incorporating technology into any industry improves efficiency, transparency, and ease of use.
Similarly, technical advancements in the real estate industry make buying and selling a home more obvious, convenient, and competent.
TECHNOLOGY’S ROLE IN REAL ESTATE
This blog will discuss the issues that the real estate sector faced prior to the advent of property technology.
Following that, we will discuss how technology is being used to develop the real estate sector in Pakistan. So, let us begin our quest toward real estate technical advancements and progress made thus far!
CHALLENGES BEFORE THE PROPERTY TECHNOLOGY
Prior to the introduction of real estate technology, property buyers and sellers faced unique obstacles when settling for a lower price. Let’s start with these difficulties!
- Asymmetric Information
- Difficulty In Property Valuation
- Lack Of Credibility
- Lack Of Proper Documentation
ASYMMETRIC INFORMATION
Before the introduction of real estate brokers and Customer Relationship Management (CRM), buyers and sellers had limited or no information about the property they wished to purchase.
Furthermore, they had particular difficulty finding a buyer for their homes, resulting in a mismatch between buyers and sellers. People primarily relied on referrals from family members, neighbors, and friends.
If someone needs to sell or purchase a property urgently, he will accept a price that is too high or too low due to a lack of information about potential buyers.
DIFFICULTY IN PROPERTY VALUATION
The second issue was the property’s accurate assessment. The purchasers were required to visit the patwaris in their respective communities, who estimated and fixed accurate prices for homes, residential and commercial properties. Likewise, they were unable to find a home that met their budget and needs on time.
The erroneous appraisals and prices ultimately resulted in regrets and losses when the correct price was established. People used to purchase or sell a home based on their assessments and opinions, ignoring the home’s actual value.
LACK OF CREDIBILITY
The third obstacle was the vendor or buyer’s trustworthiness, honesty, and merit.
Similarly, neither the buyer nor the vendor possessed the personal information or identification proof necessary to trust one another.
Previously, people would only purchase a property from someone they knew directly or through a reference.
This is why a property centered on a certain location or a group of people who lived nearby or knew the subject through a reliable person.
People used to purchase real estate with an excessive focus on registry and fard paperwork.
LACK OF PROPER DOCUMENTATION
Finally, the properties that lacked legal documents did not sell since the buyers were not prepared to make an investment.
As a result, real estate valued in the millions and billions of dollars experienced difficulties in selling at a higher price.
In the past, however, the lack of essential documents, such as the registration, fard, and other property ownership records, resulted in illicit land acquisitions.
Surprisingly, there have been occasions where people have inherited land but are unaware of its actual location due to inappropriate or misleading documentation.
THE REAL ESTATE SECTOR HAS BEEN TRANSFORMED BY PROPERTY TECHNOLOGY
This section will showcase some remarkable technologies that have revolutionized Pakistan’s real estate and property sectors. Let us go over the importance of technology in real estate in depth!
- Real Estate Analytics
- Customer Relationship Management (CRM)
- Virtual Reality and Real Estate
- Prop- Tech, Cre-Tech, And Re-Tech
REAL ESTATE ANALYTICS
Real estate data analytics assisted buyers and sellers in finding a suitable house within their price range and in their preferred location.
As Commercial Real Estate (CRE) assisted real estate agents in collecting leads from user data and finally identifying market demand and supply.
Similarly, real estate marketing firms can utilize this data to forecast future market trends by observing what consumers desire and why they want to sell their property.
Similarly, if you want to buy a house, real estate data analytics can help you find it quickly.
CUSTOMER RELATIONSHIP MANAGEMENT – CRM
Customer Relationship Management (CRM) software organizes leads, client information, real estate paperwork, and other vital data in a centralized location.
Real estate agents can access this information from their homes, offices, or other remote locations.
You’ll be able to run your real estate business while staying on top of the newest market trends.
This sophisticated software will automatically update the data, allowing you to stay informed about all new properties listed on real estate websites without having to visit those websites repeatedly.
VIRTUAL REALITY AND REAL ESTATE
Tenants who wish to purchase a home can view a property using virtual reality technology.
This mind-blowing technology fundamentally altered how the real estate industry operates and homes are sold. The purchaser donned a VR headset and viewer.
By providing a virtual tour of multiple locations simultaneously, real estate agents can rapidly grow their customer base abroad.
Therefore, this digital innovation revolutionized both the realtor profession and the real estate market.
PROPTECH, CRETECH AND RETECH
PropTech is a game changer in real estate since it allows sellers and purchasers to digitally own a property.
Graana.com and Dao PropTech have stepped up to offer a digital platform where property valuation and sale procedures are transparent and documented.
A team of professionals assists buyers and sellers in finding their dream house and investing in a property project in a seamless and simple manner.
The government, on the other hand, has digitized the property system, allowing you to verify your property record online in seconds.
CONCLUSION
Finally, Pakistan’s technical innovations and startups have completely transformed the Pakistani real estate sector. Real estate and property ownership were obsolete and sluggish prior to technological advancements.
The absence of information, credibility, and the patwari system all slowed the process of reaching an agreement.
However, technological advancements and know-how hastened property transactions. People can now buy and sell properties in a matter of days, meeting all legal and financial requirements.
Finally, with clients’ enhanced confidence and trust, this informational and decision-oriented technology assisted realtors in growing their business.
Without a question, the significance of technology in the progress of real estate in Pakistan is a wonder.
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