Ten Questions with Nafis Shahnawaz, Co-Founder at UXPro Labs

"Transactions in Bangladesh can take 6-12 months to complete and are largely reliant on a broker's motivation to see it through. This is far too long and needs to be tackled as a priority."

How do you launch a successful portal in a market where brokers run amok and home sales take nearly a year to complete?

You shake the market awake.

That's what Nafis Shahnawaz, co-founder at Bangladesh's UXPro Labs, has set out to do.

An educational portal that removes the broker from the transaction and accelerates the market, UXPro Labs is a free-to-list marketplace with a real-time matchmaking process to bring buyers and sellers together, and it also provides "how-to" legal guides that educate buyers and sellers on managing transactions without agents or brokers.

I spoke with Nafis about Bangladesh, unregulated brokers, and taking on established players...

Give us a sense of the real estate industry in Bangladesh.

The Bangladeshi real estate market is vibrant and highly active, but it faces fundamental challenges. While brokers play a crucial role in connecting buyers and sellers, there are inefficiencies. The main concern around reliance lies around this broker industry being irregulated, thus creating a lack of transparency, lengthy transaction periods and subjective pricing.

More than often, this confuses and frustrates real estate buyers and sellers from transacting confidently.

UXPro Labs aims to bridge this gap by creating a platform that complements the existing ecosystem, fostering trust and streamlining processes, creating direct connections between buyers and sellers, tenants and landlords.

Nafis Shahnawaz, co-founder at UXPro Labs

What problem does UXPro Labs solve?

The possibilities and growing demand for a platform like UXPro in Bangladesh surfaced after years of research and more than half a decade of working experience in this industry, solving unique problems of thousands of buyers and sellers came forth the key challenges which needed immediate mitigation.

We identified a need for a user-centric platform that empowers both buyers/sellers and tenants/landlords, giving them a brief knowhow about the market trends and analytics which will educate and help them to make concrete decisions before transacting. This is how we start.

What is your USP? What differentiates you from established players like bProperty, bdhousing and Bikroy?

We admire established players who follow the traditional way of real estate buying and selling rent in Bangladesh. We are more inclined toward digitizing this sector and introducing cutting-edge technology for more transparency during, before and after transactions.

How is the company funded? Will you raise money this year?

UXPro Labs is currently bootstrapped, but we are actively exploring funding opportunities to fuel our ambitious growth plans. We'll announce any developments when the time is right.

Where will the Bangladesh market go in the next 5-10 years?

The Bangladesh real estate market is likely to experience significant shifts over the next 5-10 years as per recent trends and market analysis. Demand for housing and commercial real estate is at its peak, though this varies from area to area.

If the continuation of government support for affordable housing initiatives and infrastructure development stays, the market is likely to see inclusive growth. Recent efforts to ease loan terms and create housing for the middle class may fuel demand in this segment.

The rise of proptech companies like UXPro Labs is going to change the way properties are bought, sold and managed. Smart real estate technologies are expected to play a bigger role in transforming the market and creating a new ecosystem for real estate. Recent projects such as the Padma Bridge, Dhaka metro rail and other infrastructure improvements have already paved new areas for real estate developments.

The real estate market in Bangladesh is likely to remain robust but will be shaped by urbanization, technology and economic factors. Companies that adapt to these trends will be in a strong position to capitalize on future growth.

How does your AI-powered automated valuation model work?

Yes, we have introduced the country’s first AVM (Automated Valuation Model) to verify property prices and market insights—the first of its type in Bangladesh. Our financeability tool will also help customers budget efficiently before purchasing or investing in any property.

The AI model analyzes vast datasets of property listings, transactions, and market trends; historical and in real-time. This empowers us to generate close to accurate and objective valuations, a valuable addition to Bangladesh's real estate landscape.

Do you believe a no-broker, no-agent transaction is a realistic option for buyers/sellers in real estate marketplaces in Bangladesh and beyond?

While the Bangladeshi market is accustomed to brokers, we believe UXPro Labs can pave the way for a more empowered user experience. Our platform equips buyers and sellers with the tools and knowledge to navigate transactions confidently. We see a future where technology complements brokers, enhancing efficiency and transparency.

Your website talks a lot about Time, Value and Trust. What are the guiding principles behind these pillars of the business?

The Bangladesh market continues to underestimate and deprioritise these three pillars. Regarding time, transactions in Bangladesh can take 6-12 months to complete and are largely reliant on a broker's motivation to see it through. This is far too long and needs to be tackled as a priority to minimise stress and reduce friction in the user journey.

Value is another aspect of the user journey that has not been prioritised as an ingredient to a positive buyer and seller experience. Historically, Bangladesh relies on the broker's subjective idea of the valuation of a property, which is not necessarily accurate or optimised. If we are to corner the market, we must demonstrate to stakeholders that there is fair value in the transactions we facilitate.

Finally, trust. It is time for buyers of real estate in Bangladesh to have an ecosystem they can rely on from top to bottom. Building a secure platform with verified properties & buyers/investors will create transparent transactions for all parties.

What are your short-, medium- and long-term visions for UXPro Labs?

In the short term, we aim to educate and expand our user base, enhance our platform's features and capabilities, and cater especially to the secondary market concentrating on emerging geo-locations within Dhaka, our capital city.

Medium-term goals include solidifying our position as a leader and creating partnerships within the industry such as Banks, NBFIs, Developers, etc and helping them serve efficiently and smartly. We also plan to expand toward other cities within Bangladesh and reach out to NRBs (Non-Residents of Bangladesh) worldwide and continue reshaping the ecosystem.

In the long term, we aspire to scale to other markets, leveraging technology to redefine real estate transactions worldwide.

What isn't the real estate industry talking about that it should spend more time talking about?

The industry should focus more on embracing technology to address transparency, sustainability, and inclusivity issues.

Leveraging data analytics, AI, and blockchain to streamline processes and enhance customer experiences in property buying, selling, and renting has immense potential to benefit the entire ecosystem.