How xstate brings Affordability and Accessibility to Pakistani Real Estate?

With the market for Real Estate growing rampantly, many companies are introducing innovative techniques to make the industry accessible to more investors, especially middle-class investors. Real Estate has traditionally been known to be accessible to wealthy investors due to the high minimum investment required for property investing. However, with the amalgamation of revolutionary blockchain technology in the sector, the dynamics of real estate dealings have shifted drastically. xstate is one such company, that allows investors to benefit from the perks allowed by blockchain-infused real estate investments. Following are the ways that xstate, with the efficient use of blockchain technology, is changing the game for Pakistani Real Estate investors.

Asset Fractionalization

One of the greatest gifts from blockchain technology to the Real Estate industry is asset fractionalization. It refers to the division of a property into smaller parts, that cost only a fraction of the total cost of the property. This cost can be very small and can be afforded by middle-class investors. This removes the barrier to entry, which was in the form of high initial investment, allowing more accessibility to the industry. Investors with little investment in a property are not liable to pay for the maintenance expenditure either, because of having lesser rights, which further helps them in cost saving. With more awareness regarding this innovation, the exponential growth of the real estate industry will ensue, contributing greatly to the frail economy of the country.

Real Estate transactions on a blockchain are much faster and safer when compared to traditional transactions. This is because the ownership information of a property’s fractions is stored in virtual tokens that are placed in the form of ledgers on a blockchain. Due to the secure nature of a blockchain, property investing can now be deemed a safe and secure investment. Coupled with this, the ease of transfer of ownership makes the tokenization of assets to be an extremely convenient way of carrying out real estate transactions. These transactions can be carried out on platforms that facilitate this sort of dealings, and xstate happens to be one such platform in Pakistan that is utilizing this innovation to the fullest.

Reduction of Fraud

Since the transactions take place on a blockchain, the threat of fraud is reduced to a bare minimum. The threat of fraud solely exists because of the presence of manipulative, self-proclaimed professionals in the industry, who act as middlemen and call themselves real estate agents. They inflate property prices which results in the exploitation of less-informed investors. These intermediaries have no place on a blockchain, however, which is why there is barely any threat of fraud. Moreover, records on a blockchain are immutable, meaning, no individual can impact or tamper with these records once they have been stored on a blockchain, which further reduces the threat of malpractice.

Shariah Compliance

Most importantly, xstate prioritizes religious beliefs and values, and hence it ensures 100% Shariah compliance. This means that investors can reap benefits and grow wealth with complete peace of mind, knowing their values are upheld.

Liquidity

Traditionally known to have been a highly illiquid market, the Real Estate industry has recently transitioned to quite the opposite. This is because of asset fractionalization and tokenization. Previously, real estate dealings were based on a whole property, which cost quite a lot, and the process of the transfer of ownership was quite rigorous. As a result of the lengthy procedure, the market was considered illiquid.

However, with the advent of blockchain technology, and the consequent fractionalization and tokenization of assets, the transfer of ownership has ceased to become a click away. And since the initial investment has become highly affordable, the market has transitioned to become fairly liquid.

Due to the various ways in which xstate has employed the use of blockchain technology in the sector, the Real Estate industry has prospected to grow at a fast pace in Pakistan.