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Category

 Real Estate Industry of Pakistan

One of the most safest and reliable ways you can invest within Pakistan is in the real estate business / industry. Pakistan has been seen to have a rise within real estate and especially that too in housing societies and projects. Demand for residential properties in Pakistan grew in 2010, leading to increased interest among real estate developers and investors.

There have been a lot of ups and downs within the real estate industry in Pakistan. Some years it has been seen to be going great while in other years that it has had a severe downhill. Like 2020, when the Corona Virus struck the entire world. A lot of countries had become very bad victims of the virus including Pakistan. Where the lower class suffered the most.

As people have migrated form rural areas to urban areas for better living opportunities and a better chance of life. Many of the metropolitan cities of Pakistan have now become too crowded and overpopulated.

Due to this reason, cities are becoming overpopulated and the need for out of city housing societies has been on the rise. These housing society projects are located a mere 25-30 kilometers away from the city zone.

Although they are at a distance from the city zone, people have preferred to live in these housing societies to get away from all the hustle and bustle of the city life.

The real estate business of Pakistan has increased over the past few decades and will continue on doing so with the construction and development of housing societies. Especially in the cities like Islamabad, Lahore, Karachi, Multan, Peshawar, and Faisalabad. All over the world, real estate and stock markets play key roles in the economic growth of a country.

There are five main categories when it comes to real estate in Pakistan:

  1. Residential
  2. Commercial
  3. Industrial
  4. Raw land
  5. Special use

While the real estate industry is prospering in Pakistan, it is without a doubt that there are still some challenges and opportunities that the industry faces. Following are some of the challenges and opportunities that the real estate business deals with:

Real Estate Market Flow:

The number one challenge in the real estate business in Pakistan is the market flow. Since 2017, there has been a lot of political instability within the country and due to this reason there has been an up and down graph upon the flow of the real estate market. Along with there being so many different policy changes within the finance and economics sector of Pakistan.

Opportunities in Real Estate

Many investors were on hold to purchase due to incentives; there was a ban announced on non-filers to buy a real estate property for more than five million unless they go to register with the FBR (Federal Board of Revenue)

The strict check on FBR banking transactions of non-filers, applying higher taxes on transferring the property has upset the investors to put their money in real estate. Which leads to a big problem that is being, having no investors in the real estate business.

Investment Opportunity for Overseas Pakistani and Foreigners:

Since more foreigners are visiting Pakistan, it is said to provide a hike in the growth of the tourist industry that would undoubtedly attract the tourist to buy real estate properties in Pakistan, according to some surveys, the foreigners prefer to reside in Lahore.

Along with this, many housing societies such as Blue World City, Capital Smart City Islamabad, and Park View City Islamabad, are offering special housing blocks within the housing society just for Overseas Pakistani Citizens. This is a great reliable and safe way for overseas Pakistani to safely invest within their own country in the real estate business. You can find out details of each housing society on our website Sky Marketing .

Overseas Block are specifically designed and constructed in such a way that it meets the demands and the needs of the overseas Pakistanis. To further elaborate, these blocks / sectors will be solely built for these Pakistani citizens. Additionally, these blocks are designed in a manner that the citizens will not know much of the difference between living abroad and living in Pakistan.

COVID-19:

2020 has been a different and unsettling year for the entire world. And especially on many of the developing countries. Pakistan too has been a victim of the sudden spread of the Corona Virus.

Covid-19 has hit the nation so bad, that the entire real estate market has crashed. The construction developments have been delayed, and many offices are closed due to which the transferor purchasing of properties has become impossible. It is a tough time, and the economy can only be stabilized once the COVID-19 hits off.

Due to this, the real estate industry and the construction business has been on a complete and utter halt since March. Not only has the market crashed but a lot of people have lost their jobs, especially the labor that was working upon the construction in many different housing projects.

While the Corona Virus has reduced to some extent, development and construction has been back on track for many housing societies in the country. The labor is asked to protect themselves by following the guidelines given by government.

If guidelines are followed, only then can the construction and development in the real estate business would continue to flourish.

China Pakistan Economic Corridor (CPEC):

Since the pact between Pakistan and China known as CPEC, Pakistan has been seen to have many industrial projects developing and constructing within different regions. This is a great way for the country to develop and flourish at an economic level.

Many positive impacts of CPEC can be seen in the form of improved situation of the power sector and partial completion of Lahore-Karachi motorway. The distance between Lahore and Multan has been cut short to 3 and a half hours from an earlier 5-hour distance. Business and investors are now looking towards Multan as the new economic hub of Pakistan

The CPEC has been so have a great impact to on the real estate and construction industry of the country. Additionally, with the help of many Chinese architects and designers, it will be a great way to showcase diversity within the country. Moreover, it will show solidarity between the two countries.

Crumbling Infrastructure:

Many experts see “crumbing infrastructure” has one of the biggest challenges that is faced in real estate. When people say our infrastructure is crumbling it is literal.

Everything from bridges and roads to mass transit are in dire need of repair and upgrade. Infrastructure needs can affect where companies want to build or relocate, which ultimately affects the real estate industry.

When businesses decide not to come to a certain area, this means private home buyers won’t be coming along either. Crumbling infrastructure can also affect the homeowners that already live-in certain areas.

infrasturcture of real estate in Pakistan

Potential homeowners often make decisions regarding where to buy that are dependent on access to particular highways and dependable transportation in the area. The government has a strong economic interest in maintaining an infrastructure that is capable of supporting the movement of goods, services, and people.

Doing so supports the spread of manufacturing and agriculture centers across the expanse, rather than several small local centers in each region. Maximizing the use and efficiency of available resources nationally releases more local resources within that nation to be redirected towards other endeavors.

Conclusion:

The real estate business is a great and very reliable way to invest within Pakistan. Real estate is a booming business. And especially in a country like Pakistan where there is a lot of development and construction.

Many of the metropolitan cities have turned into business hubs and many of these cities have seen to have a rise when it comes to out of city housing societies. This idea has been somewhat taken from the concept of the US Suburban lifestyle. But these housing societies are more or less considered as smaller cities, that have the basic life facilities available. Due to this a lot of people are investing within real estate and this has been a great boost for the industry in the country.

But the industry does not come without its challenges. Many of these challenges have arose due to the very reason of intense economic and political instability within the country since 2017.

But since the new government, there has been a lot of rise seen in the real estate sector. Along with the help of the CPEC, Pakistan is somewhat going on the lines of economic stability. Furthermore, the CPEC is helping in the development in a lot of infrastructure in the country.

And we cannot forget the Corona Virus. The Virus has hit the entire world and it has caused a big crisis especially in developing countries. The virus too has played a great hand in decreasing the worth and value of the real estate industry.

But with the cases slowly on a down level, construction and development has been back on track. And soon the industry will be on the rise again and bring a good economic flow to the country.

 

Head Office

2nd Floor AA Plaza
Jinnah Avenue ,Blue Area, Islamabad

(051) 848-7777

Regional Office

Office No. 2, First Floor Block C,
JB Tower, University Road
Peshawar, Pakistan

(091) 7257777

Office No. 3, 2nd Floor Mega Tower 63b,
Main Boulevard Gulberg 2 Near McDonald’s Lahore, Punjab, Pakistan

(042) 35777453

info@skymarketing.com.pk

Complaint

complaint@skymarketing.com.pk

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