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PropTech: A Catalyst for Economic Growth and Real Estate Solutions in Pakistan

The PropTech Convention ’24 was a pivotal event that highlighted the transformative power of technology in the real estate sector. Among the notable speakers, Mr. Arshad Awan, CEO of Homy Properties, delivered an inspiring speech that resonated deeply with the convention’s narrative of driving economic growth and addressing real estate challenges in Pakistan. Here, we explore key insights from his speech that underscore the importance of PropTech in Pakistan reshaping the real estate landscape.

Inspiration and Appreciation

Mr. Arshad Awan, opened his speech at the PropTech Convention ’24 by thanking landtrack.pk for their commendable efforts in arranging a successful event. His speech focused on the significant role of PropTech in evolving the real estate sector in Pakistan. He expressed gratitude to the pioneers driving these initiatives, highlighting the importance of their contributions to the sector’s growth.

Early Stages of PropTech in Pakistan

Mr. Arshad Awan pointed out that while PropTech is booming globally, Pakistan is still in the initial phases of adopting these technologies. He emphasized the need to raise awareness among stakeholders about the potential benefits of PropTech. There is crucial need for a concerted effort to educate and inform all stakeholders about the advantages of PropTech, which is essential for the sector’s development in Pakistan.

Addressing Population Needs

He highlighted the pressing need for residential & commercial spaces to accommodate the growing population of approximately 240 million people. Despite the large population, Pakistan lags in development compared to countries like the USA, India and china. This lack of development has made it increasingly difficult for ordinary citizens to afford homes, resulting in prolonged stays in rented accommodations.

Leveraging the Youth Demographic

Highlighting the potential of Pakistan’s youth, which makes up 64% of the population under 30 years old, He emphasized that this demographic is a significant strength for Pakistan. Every real estate development must consider the needs and preferences of the youth to be successful. The youth in Pakistan are tech-savvy and prefer receiving information through mobile devices. making it imperative for real estate products to be designed with their requirements in mind.

He highlighted the need for flexible living solutions, as young people may not stay in one place for long and require mobility. Youth’s mindset is more consumer-oriented rather than investment-focused, leading them to spend on luxury items rather than real estate. To attract this demographic, real estate developers need to create products that appeal to their lifestyle and preferences, thereby ensuring the success of their projects.

Reviving Overseas Pakistani Investment

Mr. Arshad Awan also addressed the decline in real estate investments from overseas Pakistanis over the past two years. He noted that overseas Pakistanis traditionally prefer investing in real estate in Pakistan due to the minimal control required and good returns. However, recent setbacks have caused many to withdraw their investments, significantly impacting the sector.

To regain the confidence of overseas Pakistanis, there’s a  need to create attractive investment models that offer security and good returns. He also pointed out the lack of online investment platforms in Pakistan, which makes it difficult for overseas Pakistanis to invest remotely. By developing reliable and accessible online investment platforms, the PropTech sector can attract back overseas investors, boosting the real estate market.

Harnessing the Potential of Freelancers

Mr. Arshad Awan also highlighted Pakistan’s strong freelancing community, which is ranked fourth globally. This community earns well and is supported by the government through initiatives like technology parks and co-working spaces. Freelancers often aim to invest in property, but there are currently no real estate products specifically designed for them.

To tap into this potential market, designing real estate products tailored to the needs of freelancers can help. These products should consider the unique requirements, offering flexible and affordable housing solutions. By doing so, the real estate sector can attract a significant portion of the freelancing community, driving further growth and development.

Conclusion

Mr. Arshad Awan’s speech at the PropTech Convention ’24 provided valuable insights into the challenges and opportunities in Pakistan’s real estate sector. His emphasis on the early stages of PropTech adoption, leveraging the youth demographic, aligns perfectly with the convention’s narrative of driving economic growth and solving real estate challenges through technology.

The PropTech Convention serves as a crucial platform to highlight these issues and pave the way for a brighter future in Pakistan’s real estate industry.