There’s a lot of opportunity for investment and growth as the global economy transforms in Pakistan. When compared to other major sectors of the economy, like agriculture, technology, energy, and manufactured goods, the real estate industry is a competitive industry that’s grown tremendously. The World Bank estimates that real estate assets of a country make up 60 to 70% of its total wealth. As a result, Pakistan’s real estate market is worth around $1.5 to $2 trillion (Dawn, 2020). Therefore, investing in the real estate sector in Pakistan could have a huge impact on the country’s GDP, which currently stands at $314 billion (The World Bank). Real estate development should be encouraged in countries like Pakistan so that not only will the housing crisis be resolved, but this will also produce growth in allied businesses.
This blog will focus on how real estate plays a crucial role in Pakistan’s economy…
Throughout Pakistan’s history, the real estate sector has gradually developed into an effective source of economic growth, including housing, construction, retail, hoteling, and leasing of space. Almost 200 industries in Pakistan rely on real estate, including cement, wood, building, sanitary fittings, glass manufacturing, steel, furniture, paint companies, plastics, electric fittings, and cables.
You can make money from real estate while also diversifying your investments and earning capital appreciation. The value of real estate also increases as GDP increases, and it’s one of the best ways to participate in economic growth. In the past, a lack of a proper regulatory framework restricted the growth and potential of the real estate sector. But now that the incumbent government has finally taken notice of this sector and created a plan for its revival, the sector has reached the level of the industry.
According to a World Bank report (Khurram, 2020), the value of real estate in a country is directly related to foreign investments and remittances. Hence, overseas Pakistanis find real estate a popular investment, but running a business from overseas isn’t easy in Pakistan. Moreover, the young find real estate a rewarding career path, offering an opportunity to grow Pakistan’s economy as the market becomes saturated with business capacities. Here are some tips to find out how to make money from rupee depreciation.
Real estate in Pakistan is expected to grow exponentially. The News (2020) estimates Pakistan’s housing backlog at 9 million units, growing at a rate of 300,000 units per year. Fulfilling this demand requires housing finance and construction. There’s no way to fulfill it without housing finance and construction. Since covid-19 has spread to Pakistan, the real estate sector has been pushed to open first since it employs the most skilled and unskilled workers. It’s a great example of how the real estate industry can be the backbone of a country.
Outdated laws and regulations used to make it difficult for overseas Pakistanis to invest in Pakistani real estate. Transfers and allotments also had to be done in person. Fortunately, since 2018, the government has been encouraging overseas investment by implementing digital accounts for easy payments and imposing stringent regulations on newly marketed real estate projects. Real estate regulatory authorities will ensure transparency by regulating the market for real estate and ensuring transparency in transactions.
In addition to tourism, real estate plays an important role. Pakistan’s tourism industry has grown exponentially in recent years, and in 2019, tourist traffic increased by 317%, with Punjab accounting for 95% (Ikram, 2019). Investing in the sector is expected to boost real estate values in previously unexplored areas. Furthermore, Pakistan rose by 28 positions in the World Bank report on favorable business environments (Dawn, 2019). Real estate is predicted to have a bright future in Pakistan according to the twin indicators. It may, eventually, become one of the largest contributors to the country’s GDP as a whole.
Premium housing and secure living areas are also in demand in Pakistan. Builders and property development companies are increasingly establishing gated communities that offer all amenities along with recreational areas and third places. As a result, construction booms, property developers build housing for an overburdened population, and the government generates revenues.
The China-Pakistan Economic Corridor (CPEC) is pushing real estate to the forefront of Pakistan’s economy. Cities like Multan will become business hubs under the project with special economic zones (EEZs).
It will boost the real estate market by creating demand for housing and commercial development in these areas. CPEC has already improved Pakistan’s energy sector in addition to upgrading railway lines and motorways. Only 0.5% of Pakistan’s land is planned, according to Shafiq Akbar, CEO of Graana.com (The Express Tribune, 2020).
Pakistan’s real estate sector is expected to grow the fastest in the upcoming years. Real estate has more than 200 industries. Pakistan’s housing crisis can be solved by creating massive employment opportunities for its youth. There are two major reasons for real estate growth tourism and CPEC. Investors and buyers in the real estate market need a strategy to deal with problems. Thus, transparency and regulation will always be the cornerstone of the real estate market.
Follow us for more updates and guides about real estate. Visit our Website www.reality21.pk
You can also invest in other famous and most in-demand housing societies, such as New Metro City, Sialkot Motorway City, New Metro City Mandi Bahauddin, and Lahore Smart City.
Reality 21 please contact 0304-1110011 or visit https://reality21.pk/
A few more real estate housing schemes are trending nowadays in Islamabad and Rawalpindi, including:Park View City, Blue World City, Eighteen, Capital Valley Islamabad, Capital Smart City, KMK Tower, Faisal Hills, Nova City, Silver City, New City Paradise.
A well-known housing development in Islamabad called Reality 21 provides a modern and opulent living environment. This upscale residential neighbourhood combines tasteful architecture with cutting-edge conveniences to produce a truly opulent living. Reality 21 is conveniently close to main roads, commercial hubs, educational institutions, and healthcare services because it is situated in a desirable location of Islamabad.
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