Economy and the Future of Real Estate in Pakistan

The economy and real estate of a country go hand in hand. The rise or fall in the real estate will directly affect the economy. The World Bank says that the contribution of real estate in the economy of any country is around 60% to 70%. In fact, it is not wrong to say that it influences the economy more than the common people. Right now, the real estate industry is experience boom in Pakistan which is going to open many doors for the increase in economic growth. As of 2025, the contribution of real estate in the GDP of Pakistan is expected to be 13%. Not only this but it also fuels several other industries related to construction and finance including cement, steel and even house financing.

The Future of Real Estate:

The economy of Pakistan will surely take influence from the future of the Real Estate market. Let’s discuss the future scope and opportunities of the realty market with respect to some major contributing factors;

Government:
The current government has shown keen interest in the real estate market. The PTI government saw a lot of potential in this sector and hence started promoting it on different platforms. Naya Pakistan Housing Program was launched to make the property approachable for the lower class. This conveyed an image that property can be owned by anyone. As a result, investors from every class came forward and showed their interest in investing in property.

Population:
The division of people always influences how different industries function. The majority of the people in Pakistan have to earn for their families instead of just themselves. They live in homes that can accommodate all the individuals of the family. Therefore, the houses in our country are constructed with the point of view that families would be living here. As the population is gradually increasing, the demand for housing societies is also increasing hence, an increase in the rates of properties is expected.

Investors:
Investors play a huge role in the real estate market. The nature of investors’ interests affects the trends of the real estate market. If more investors want to purchase residential properties, the prices of residential properties are expected to rise due to the increase in demand. In other words, the category of property that is popular among investors tends to have more demand. Recently, a lot of steps have been taken to attract as many investors as possible to the property market to increase the profitability of this sector. Naya Pakistan Housing Project also appealed to many investors to invest in housing projects.

Overseas Clients:
The current government has been highly cheering the overseas customers to invest in property. This benefits the economy to a larger extent as the investment from an overseas customer brings foreign currency mainly, dollars. Upon analyzing the recent situation, a large number of overseas clients are expected to invest in Pakistani properties. Such customers always look for appropriate guidance and Pak Residence is here for it. We cater to all the queries of our overseas clients and help them in making their investments profitable.

Taxes:
Seeing the increasing demand in the real estate sector, the government of Pakistan is keen to increase the taxes on properties. This will elevate the tax collection which will support the economy. In December 2021, FBR imposed new immovable property rates to collect more taxes from commercial and residential plots but the new rates were soon waived of because many inconveniences one of which was that the step was taken without taking the stakeholders in confidence. In the future, the government may consider increasing the tax rates.

Budget:
The annual budget also has a hand in determining property prices. If the government increases the cost of construction materials, the prices of housing properties will eventually increase and vice versa. Obviously, the low cost of construction materials will encourage investors. Hence, the new budget of our country will contribute in deciding the prices of property.

Overall View:
Keeping in mind all the above factors, it can be said that the future of real estate is bright. As it is said earlier that the real estate business is booming so, it is expected to be more profitable than before. The government is also promoting it because it is one of the most feasible ways to extract revenue, for the sustenance of the economy. Many measures have been taken to convey the image that investing in housing projects is safe and beneficial. By launching Naya Pakistan Housing Project, the government has started the trend of low-cost housing drawing a large customer base towards it. Other modern housing projects are also being operated successfully. Consequently, the real estate sector is speculated to have enormous new opportunities as a greater number of people will be seen investing in properties.

Our Contribution:
Pak Residence is a platform formed to guide the clients according to their interests and requirements. We are dealing with several profitable projects including Kingdom Valley, Islamabad for which we are offering extremely affordable rates and reasonable installments.

You can visit www.pakresidence.com or email us at info@pakresidence.com. You can reach us out on our social media handles www.facebook.com/pakresidence and www.instagram.com/pakresidence.

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