Real Estate in Pakistan is an essential and developing segment of the economy which annually spends around $5.2 billion on construction. Also, a lot of capital is spent on the purchase or buy of the residential and commercial plots. Real estate services are the most favored by investors as the rate of return is considerably high for locals. Real estate services in Pakistan are considered as a financial tool, hence people highly prefer to invest in the majority of savings to earn profits. According to the Pakistan Bureau of Statistics, construction yields 2% of GDP whereas, housing represents less than half that total. Additionally, real estate is an important and a major source of employment both directly and through the associated industries upon which it depends. Due to the escalation of urbanization, Pakistan has been encountering a developing requirement to focus on urban planning so that there is an increase in quality which ultimately shows the efficiency and effectiveness of an expert real estate market.
The real estate industry of Pakistan is demonstrating persistently stable trends, generating revenue from within and from overseas Pakistanis. Some concerns people face in this sector are related to the smooth and secure transactions for which the market has introduced online portals that provide better facilities. In Pakistan, the real estate market prices have been rising steadily for quite some time now as property in prime and big cities like Karachi, Lahore, and Islamabad are high in demand among both the realtors and consumers. Furthermore, the concept of luxury living emphasized on the making of multi-purpose buildings that offer a mix of residential (serviced apartments) and commercial (standalone shops, office suites and shopping malls) units which are being developed with increasing demands by Pakistani home buyers. According to Pakistan’s security issues, safety is the first priority of most citizens which is quite understandable. Since, gated communities are perhaps preferred because these type of communities offer maintenance promises and also allow easy access and convenience of other necessities.
Moreover, top real estates are also establishing awareness campaigns through characters like PAT The Patwari, who are actually village accountants. Another development of the real estate market in Pakistan is the introduction of expos and festivals which are not the only platform for customers to buy and sell, but also an opportunity for them to learn about the market and get awareness for the best real estate industry.
Top real estate markets in Pakistan use a blend of competitive strategies in order to survive in the face of competition. Due to the fluctuating economy and unstable political environment in Pakistan this industry needs to focus on introducing modern technology for investor’s assistance and facilitation. For example: Property Festival, which took place in Islamabad on October 20-21, 2018 at Pak-China Friendship center aimed to provide awareness on the real estate issues in Pakistan; highlighted by the industry experts, policy experts, and people representing the Government through different keynote sessions and talks of the market.
Real estate markets in big cities of Pakistan like Karachi and Lahore is quite vast and provides opportunities for a large number of players. Also, Real estate market of Islamabad had a large number of interesting projects which attracted genuine buyers and investors but currently the situation is rather slow. The overall market of these large cities is fluctuating however, many industry experts are waiting for the government to take concrete steps to bring such reforms which would eventually increase investment sector of Real estate in Pakistan. Moreover, real estate agents and experts in the field believe that market activity shall ideally remain stable because construction is ongoing through all major cities.
In conclusion, as the position of the real estate market in Pakistan possess extraordinary potential for the investors and buyers in terms of flexibility, efficiency and customer satisfaction, the whole process of integration still needs to be flattened. For this task, proper strategic reforms need to be developed that focus on boosting the industry in long-term considering all market threats and opportunities. Thus, a more effective opinion would be to initiate multiple public private partnership agendas which would automatically create an environment beneficial for lending and mortgages.