Pakistan real estate has incredible opportunities for Pakistanis to invest, especially when they have enough savings and want to grow their wealth. Many people believe that this is the best time to invest in real estate Pakistan, taking the current property market stats into account. Many real estate companies and investors are engaged in initiating and purchasing projects, which is a positive indicator for a brighter future of real estate in Pakistan.
However, any time you decide to invest in Pakistan’s real estate industry, you must be aware of the developments and news in real estate. In other words, you’ll be able to make the best real estate investment in Pakistan if you’re aware of the current market conditions. In today’s read, we will give you a concise but precise roundup of what is expected from real estate in Pakistan in the near future.
Government Reforms Introduced for the Construction Sector
To trigger economic growth in a country, it is important to initiate activities that facilitate the major industries that contribute to the country’s GDP. Having a great potential to lift the economy, the real estate industry is one of the most important segments of Pakistan. The country has a high demand for housing and commercial units, and its real estate has a capacity to absorb a large number of skilled and unskilled workers.
The PTI-led Government is creating Naya Pakistan Housing & Development Authority, which is now creating systems to facilitate the development of housing with a special focus on affordability. Earlier this year, the government also announced a Construction Industry Package with commendable measures. These measures included recognizing the real estate and construction sector as an industry, rationalizing the immovable property duties & taxes, introducing a fixed tax regime, and encouraging investors to participate in the sector by giving exemption from declaring their source of income while investing in Pakistan real estate.
The government has also formulated the Real Estate Regulatory Authority (RERA) to develop and promote real estate in Pakistan andprotect the stakeholders. In addition to this, the new reforms introduced in the fore-closure laws will enable institutional funding support, which will lead to positive changes in the property investment sector. Institutional funding support includes refinance facilities from the Pakistan Mortgage Refinance Company (PMRC), which is backed by World Bank’s funding.
Real Estate Market Analysis
Pakistan is currently facing an overall shortage of up to 10 million residential units. Urban housing shortage is 3.4 million residential units approximately, whereas rural housing shortage is estimated to be over 7 million residential units. It’s expected that the annual housing demand will grow from 800,000 units in 2020 to 1.24 million housing units by 2025. Urbanization and youth escalation in the country has put an acute pressure on infrastructure, especially housing.
Creating an effective eco-system for the real estate industry may be challenging as it involves multiple agencies and governments. It is crucial to manage diversified resources like land, different types of utilities like electricity, gas, water and sewerage and amenities like retail, hospitals and schools.
We believe that the government has successfully created an enabling environment for the real estate and construction sector. Now, it is the industry’s obligation to step forward and respond positively to government’s incentives.