Real Estate investments now open for everyone!
xstate: an Islamabad based startup determined to solve real estate problems.
Pakistan’s real estate economy is valued at around $ 400 billion, with approximately $ 5.2 billion spent on construction each year. Real estate in Pakistan is one of the most sought after investment opportunities, but unfortunately 90% of Pakistanis cannot afford this investment due to the steep and rising cost of real estate across the country.
Islamabad-based start-up xstate wants to solve this problem by making real estate investments possible for everyone. They rightly carry the slogan “Ab hogi zameen sab ki”. xstate does this by fractionating real estate. You first select a first-class property that is safe in all aspects and also has a large margin of appreciation for the future and allows everyone to buy tokens of this property at a price of only 5,000 PKR. xstate then holds the property until a pre-announced participation period has expired. After this period, xstate sells the property in a transparent auction on the market and returns the proportional share to each of the buyers. As a result, all buyers benefit from the same return as the increase in value of the property. XSTATE also has a novel exchange where people can trade their asset tokens in a P2P fashion and liquidate their holdings at any time. Through innovation, xstate makes real estate transactions affordable, secure and liquid for everyone.
Asif Khan, co-founder of xstate, shared his vision: “xstate is a crowdfunding platform for real estate stocks that enables real estate investments for everyone through fractionation. We aim to solve several of Pakistan’s economic problems by making real estate investments liquid and accessible. In addition, we want to create a new shared economy through our partner program so that everyone has the opportunity to benefit from the constantly growing real estate industry. “
In addition to the extremely simple user interface and the investment process, it also sets itself apart from the competition by emphasizing secure and Sharia-compliant processes. Only properties are listed on the platform that are in prime locations without NOC, ownership or legal disputes and that are legally owned by xstate.
“Unfortunately, our medium-sized companies currently have no good savings and investment opportunities. With xstate we want to change that and our mission is to provide inshaAllah a safe and halal way for the common people to save, ”added Altamash Janjua, co-founder of xstate, while discussing the philosophy behind the concept.
The xstate platform can be accessed anywhere from a cell phone or computer, is completely transparent and scalable. The first real estate listing on their platform attracted investments from 86 Pakistanis from around the world in one month. True to their goal of opening up real estate to everyone, their youngest investor is 19 years old, while 70% of the investment consisted of amounts under PKR 50,000 each. It was also interesting that many women also made purchases via their platform, which underlines the financial inclusiveness of the idea. Pakistanis from over 20 countries have already bought real estate shares through xstate and the team sees enormous interest in the diaspora. Xstate thus has enormous potential to become an important vehicle for increasing the inflow of valuable foreign currency into the country and also improving the domestic savings rate. After successfully completing their first listing, they set themselves a bigger goal. The current listing in D-12, Islamabad, is one of the most beautiful properties in the city.
Real estate crowdfunding and real estate fractionation are areas that are not currently regulated in Pakistan. This area is experiencing phenomenal growth worldwide. Smartcrowd.ae in Dubai, propertypartner.co in the UK, and Lofty.ai in the US are some notable examples. xstate tries to bring the same value to the citizens of Pakistan and now allows everyone to buy real estate. Visit www.xstate.com and be part of the proptech revolution in Pakistan.
Cover picture via xstate