What is xstate and How It Plans to Bridge the Investment Gap in Pakistan?

Real Estate in Pakistan

“The size of a country’s real estate assets constitutes between 60 & 70% of the country’s total worth”

- World Bank 

Although Pakistan's GDP is around $350B, the country's real estate industry is estimated at $400B. This industry not only offers an evergreen investment as well as the potential for long-term financial gains with the least associated risks in most market scenarios, including the covid-19 pandemic period.

The already benefitting industry became more attractive with the introduction of property crowdfunding. The days of just the wealthiest individuals being able to purchase and enjoy the benefits of owning an appreciating property are now over as more and more people can now invest in one of the most stable investment options.

The middle class in Pakistan encounters a variety of investment challenges including a complex investment structure. Because there are few investment opportunities in the country, and financial markets and financial institutions are so far removed from the middle and upper-middle classes, most individuals turn to real estate and gold for their investments.

What is Property Crowdfunding? 

Consider a situation where a group of individual retail investors come together to pool their money and purchase a property, reap the benefits of capital gains or rental income, and then sell their portion anytime they desire. This is called property crowdfunding which enables a wide range of investors to collectively participate in the ownership of a real estate asset.

Three ways Middle Class can benefit from Property Crowdfunding:

It is finally possible for middle-class investors to enjoy several beneficial investing activities that would otherwise be unavailable or beyond their reach, thanks to property crowdfunding. Following are a few of the benefits these retail investors can avail through property crowdfunding: 

1. Lower barrier to entry:

With emerging prop-tech platforms like xstate, the investment structure is not as complex as traditional real estate. At minimum capital requirements, investors can now get a percentage share of a single real estate asset quickly and easily, without going through complicated and repeated processes.

2. Stable income stream through diversification:

One of the most sought benefits by the investors is diversification which reduces the risk and stabilizes returns. Thus, investors have the option to buy shares in multiple properties at once e.g. rental properties, commercial and residential real estate etc. Depending on the percentage of shares held for each property, investors can get stable monthly rental income disbursements and when the property is sold, capital gains are distributed accordingly.

3. Low Risk & High Liquidity:

Premium real estate in Pakistan has been considered to have low risk with medium to high returns. Not only investors can now trade shares in these premium properties and avail themselves of the advantage of affordability, but also they can sell some and all of these shares at any time, according to their investment plan and goals. This is due to high liquidity which is because of the availability of a good amount of investors ready to buy at the fair market value and avail benefits of property crowdfunding.

What is xstate and how it plans to bridge the investment gap in Pakistan?

"Think of xstate as Binance for real estate.”

~ Asif Khan, CEO & Cofounder xstate

xstate is a property equity crowdfunding platform with the mission of making real estate investments accessible to the common citizens of Pakistan. With a minimal investment amount, anyone can invest in properties with a cellphone and internet, without even visiting the place physically.

Why trust xstate?

Besides being registered with both SECP and FBR, xstate also offers complete transparency, real-time transactions monitoring and tamper-proof record-keeping to its investors. xstate is responsible for the property’s due diligence as well as its safety.

Is Investing with xstate Shariah Compliant?

Yes. 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.

Who is behind xstate?

The co-founders of xstate, Altamash Janjua serving as the company’s COO and Asif Khan serving as xstate’s CEO are both highly qualified and educated. They also possess qualifications from one of the best institutions in the world, Stanford University.