Pakistan’s real estate industry is evolving at a fast pace as companies are trying to overcome real estate challenges and resolve its complexities. There are many factors such as the law amendments, federal budget, and the public’s trust in the sector that have led to the advancement of the industry. According to reports, many investors have withdrawn their money from banks after the introduction of 0.3% to 0.6% withholding tax on filers & non-filers on tax returns.
These factors, along with the rise of safe real estate investment, encourage Pakistanis as well as non-resident Pakistanis to invest in long-term property investments rather than in short-term purchases. Investment Gurus are confident about advising the investors to put their money in the real estate market of Pakistan as much as possible as this is the best time to do so. Stats revealed that the property prices are increasing continuously since the new government has taken the charge.
The real estate sector of Pakistan is booming since the PTI-led government came into power. The confidence of the public in the new government has helped the market to attract more investors. The property prices were stable since the last government introduced tax reforms in 2016. However, after the formation of the PTI-led government, the prices have seen an upward trend and expected to increase more in the time to come.
Despite the fact that Pakistan’s economy is not performing well, the investors are very positive, and these vibes are expected to stay longer as the government is taking substantial measures in the real estate sector. The government is also expected to release state properties. This makes the real estate market more charming for the investors at the present.
Even though Pakistan’s economy is cash-based, the government can speed up the development of the real estate market by introducing new regulations in the lease market. It is because the leasing market has a high significance for Pakistan’s real estate sector.
Many experts are optimistic about the real estate market of the country and list the following facts to support their stance:
- The Interest of Overseas Pakistanis
Many overseas Pakistanis wish to invest their hard-earned savings back in their homeland as they believe one day they’ll have to return to Pakistan, and what can be better than investing in the real estate sector? Many high-end housing societies in metropolitan cities like Islamabad, Lahore and Karachi, offer a luxurious lifestyle to its residents equipped with facilities of international standard. These places have managed to grab the attention of non-resident Pakistanis. Out of all the major sectors in Pakistan gaining advantage from overseas investment, real estate is at the top of the list.
- High Returns on Investment (ROI)
It is a fact that real estate is the only sector in Pakistan that always offers high returns on investment in both the short run and long run. This is why most investment experts recommend you to invest your money in some kind of real estate asset. However, you need to conduct thorough research regarding the property you plan to invest in, previous purchase and sales trends in the chosen area, and the developer’s market reputation. This homework will help you invest in the most profitable property and help you earn more from your investment in the future.
Pakistan’s real estate is a major contributor in the country’s economic growth. According to the World Bank, the real estate assets of a country constitute between 60% to 70% of its total wealth. If we apply these estimates to Pakistan, the approximate size of the real estate sector would be $300-$400 billion. According to a report by the World Bank, a rise in foreign investment and an expansion of the sector is directly linked with the worth of real estate.
Moreover, the improved indicators of economy signify that in the year 2020, we will witness an increase in demand of commercial and luxury residential projects in metropolitan areas like Karachi, Lahore, Islamabad, Multan, and Faisalabad. There is no doubt that in the coming years, we will see a significant expansion of the Pakistan real estate sector.