AI game changer for realty sector

Tycoons warn of scam risks, call for following rules and regulations

KARACHI:

Real estate magnates, construction industry tycoons and artificial intelligence coaches have said that AI is a game changer, which requires a sustainable policy with rules and regulations while addressing poor governance in financial institutions.

They stated this during the PropTech Convention 2024 on the second day of the three-day 18th Build Asia International Conference and Exhibition at the Expo Centre Karachi.

Commenting on Pakistanis investing in Dubai's real estate sector but not in their home country, leading property tycoon and Olympic Group Chief Operating Officer Abdul Kareem Adhia said there is a risk of scams in real estate business but scammers hardly comprise 5-10%.

He stressed that government departments like the Sindh Building Control Authority (SBCA), Karachi Development Authority (KDA) and Karachi Metropolitan Corporation (KMC) must ask builders and developers to work as per rules and regulations, and if they do not control them and go into hibernation after taking kickbacks, the public institutions will lose their credibility and reputation.

The builders who are working honestly are hurt. The black sheep in the government must be removed immediately in the larger interest of growth in this sector.

He said government officials, who are working in key institutions like the State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and others, are eager to fill their pockets while harassing businessmen.

Businessmen are struggling to save their hard-earned money from corrupt officials and if they decide to go abroad, the industry will collapse, triggering unemployment and other economic and social ills.

Instead of demolishing Nasla Tower, a residential plaza in Karachi, the officials of government departments who gave no-objection certificates (NOCs) to the builder must have been punished.

There are 40% slum areas in Karachi, but not a single shanty town is knocked down. The demolition of Nasla Tower has hurt builders, end-consumers and shattered investor confidence.

After this nightmare, there is a big question mark over the 70% foreign investment which mostly goes to the realty sector. Units of various projects are not being sold these days because of rising inflation. At present, there is a shortfall of 1.5 million houses. He pointed out that Pakistan needs foreign investment and if capital comes from expatriate Pakistanis and the builders relocating abroad, it will give a boost to this sector.

Speaking about empowering the next generation, College of Computer Science and Information Systems (CCSIS) Dean and AI Consultant Brig (Retd) Professor Dr Muhammad Abbas said AI is a game changer for real estate and construction sectors, offering unprecedented opportunities for efficiency, innovation and sustainability.

The academia plays a crucial role in preparing future leaders with AI skills and knowledge needed to thrive in this evolving landscape.

By integrating AI into curricula, providing hands-on experience, fostering industry collaboration and supporting research, academic institutions can empower the next generation to shape the future.

Talking about real estate investment and finance, he said risk assessment tools enable informed decision-making, for example, PropTech platforms help analyse market trends.

When it comes to the role of academia, interdisciplinary expertise combines AI with industry knowledge. The academia must lead in innovation and ethical AI use. Integrating AI into curricula encompasses tailored programmes, combining AI with architecture and urban planning.

Fostering collaborative learning involves forming partnerships with industry leaders to provide real world experience through student internships, while also utilising AI tools to simulate construction scenarios.

Encouraging innovation and research calls for the establishment of AI research hubs focused on urban and sustainable design. Emphasising ethics in AI involves addressing concerns such as data privacy, algorithmic bias and job displacement.

For instance, conducting ethical analysis of facial recognition technology used in buildings is essential to ensure responsible AI development and application.

Speaking about AI tools for construction and property management, Dr Abbas said Allytics offers an AI-powered platform that uses CCTV and existing video footage to analyse site conditions and monitor site safety and productivity.

Everguard.ai focuses on using AI and variables to enhance workers safety. Its platform integrates computer vision and real-time data analytics to monitor workers' movement and activity, ensuring they adhere to safety protocols and detecting potential hazards before they lead to accidents.

Landtrack.pk founder Atif Arafin said the PropTech convention aimed to bring all stakeholders of the real estate sector under one roof and talk about innovative technologies, deliberating how this industry is working in the outside world, how to ensure transparency, how to go for sustainable construction materials and the like.