Naveed Ahmed

SmartCrowd, a platform that allows investors to invest in Dubai properties, is planning to expand its operations to Pakistan by offering investment opportunities in Pakistani and Dubai real estate markets. To attract small investors, the company allows anyone to invest as low as 500 United Arab Emirates dirhams (AED).

Adan, a representative of SmartCrowd, told WealthPK that in the first phase, the app will be available for Pakistanis to invest in Dubai’s real estate market. The SmartCrowd team expects to start its operations by the end of the year. In the second phase, SmartCrowd will also allow Pakistanis and international users to buy shares in properties in Pakistan.

The representative said that in Dubai, dividends are based on rental yields, but the market model for Pakistan will be based on the value of capital appreciated. The earnings will be based on property appreciation in Pakistan for customers. While explaining the reason for starting the operations of SmartCrowd, he said the Pakistani community has emerged as one of the leading investors in the Dubai real estate market. In most cases, they have settled abroad and wish to invest in their native country; however, due to the lack of an appropriate platform for this purpose, they opt to invest in Dubai as an alternative.

“We intend to offer this service as soon as possible within Pakistan, for domestic activity and for overseas Pakistanis who wish to send money back home. Still, for this, there is a need for a reliable method,” said the representative. While highlighting the success of Roshan Digital Accounts, he said it provides banking services to Pakistanis living abroad, including the ability to purchase Naya Pakistan Certificates. As a result of these initiatives, a lot of capital was brought into the country.

Adan said it would be a game changer if a platform such as SmartCrowd could be linked to a Roshan account so an individual can invest in Pakistani real estate anywhere in the world from his/her comfort zone. Mentioning the challenges, the representative said SmartCrowd, as a foreign entity, finds it difficult to transfer money. He said things can get better if the government introduces measures for smooth inward and outward movement of dollars.

Adan said the process of legal documentation and ownership records are also among the main reasons for low investment in the real estate sector in Pakistan. He said the company will conduct thorough research in all matters related to real estate in Pakistan, particularly the property laws, before investing third-party capital, which would be the clients’ money, to have a smooth sailing.

The representative said the Pakistani government has taken several measures to promote innovation and business creation. As of now, the potential benefits outweigh the difficulties in entering the Pakistani market. He said the Securities and Exchange Commission of Pakistan (SECP) has been discussing with SmartCrowd the working model around fractional ownership rules.

Credit : Independent News Pakistan-WealthPk