When we think of quotations like “The best investment on Earth is earth” or “In real estate, you make 10% of your money because you’re a genius and 90% because you catch a great wave” we really plan to invest in real estate believing it to be most genuine way of making big fortunes.
Insecurities in Real Estate Investment
But on the very first step we are literally blown away by a number of confusions like,
Is it wise investing my money in it?
I know nothing about this business.
What is the profit margin?
Which area, what property, how to do it?
Well Ok, who should I trust then? An agent! No way…..!
Such queries haunt our minds and we’re left with nothing rather a BIGGER QUESTION!!!
Is Real Estate Industry a beacon of public service for Pakistan, or a fraudulent activity where corruption and deception become the order of the day? To me, it’s indeed a public service!!!
Real Estate and Pakistan’s Economy
Real Estate market is the backbone of national economy. As much as 250 industries (including cement, steel, building, timber) depend on it. The sector is the second largest employer in Pakistan, only second to agriculture.
Even then,
- There are still 20 million homeless people in Pakistan;
- Almost every 7 out of 10 Pakistanis cannot purchase any property;
- The industry contributes only 2 % to the national GDP despite being worth of over $700 billion, compared to 9 % of India;
- Pakistan holds 121st position in the list of 128 countries where property rights are protected;
- 75% of real estate agents lack professional expertise and qualification;
Why???
The Problem
Have you ever given it a thought that the number of real estate agents has gone mind blowing but the service, in fact blows our minds. Buying and selling in Pakistan turns out to be so nauseating and complicated that any customer would try hard to stay away from it. Our real estate market has become infested with such horrible ailments that it requires complete transformation. Some of them are mentioned below:
- Outdated land administration system;
- Imperfect and problematic real estate laws and regulations;
- Unfamiliarity of land owners and buyers with their basic rights;
- Null enforcement of real estate contracts;
- Confused record of land revenue and title (as it is registered at various places);
- No reliable consultancy and dealing available anywhere;
- Severe lack of brokerage, valuation, land managerial skills and accessibility and affordability of dispute resolution;
- Unclear and complicated buying and selling activity and protocols;
- Illogical variation in market prices;
- Concealment of real estate transactions;
- Limited opportunities for Foreign Direct Investment because of inexplicit policies.
Real Estate Industry Needs a Change
The industry critically requires real estate companies, staff, and technology, including property portals, to have the following merits included in their credentials:
- finger on the pulse of local and international real estate market;
- ingenious professionalism and state of the art corporate approach;
- realistic mission and vision;
- Buyer’s empowerment through awareness;
- Re-defined buying and selling culture through innovation.
If you think we can bring a change in some other ways, do let me know.