A very distinctive feature of Pakistan’s real estate market is that it hits record lows and highs over a comparatively short period. During times of bullish trends, it gains unprecedented growth levels of 90 percent. Conversely, the property sector in other parts of the world follows a steady growth trajectory.
State Bank Of Pakistan Insights
The State Bank of Pakistan noted in a recent report that the joint contribution of the housing and construction sector has been higher than nine percent over the past decade. It further mentions that the industry helps stimulate activities in other related industries – such as steel, wood, bricks, cement, and cables.
Major metropolises of Pakistan like Karachi, Lahore, and Islamabad have reached the peaks concerning land availability. Therefore a large number of developers and builders are opting for mixed developments and apartments along with the suburbs.
What the Experts Are Saying
Najeeb Pardesi, the MD of the Giga group of companies, attributes the development of the second-tier city centers to increased migration and urbanization. It is a misconception that commercial and residential projects in such areas are affected by relatively low consumer demand. In reality, the residents of smaller cities are more affluent due to a flourishing agrarian economy.
Market gurus like Najeeb Pardesi consider the long term and short term profits responsible for the popularity of real estate. Moreover, investors can choose from a variety of options, from farmhouses and luxury apartments to low-income rentals and empty plots. So there’s some option within everyone’s budget.
A New Era of Marketing
Pakistani diaspora has learned to utilize various online portals to sift through all of these choices quickly. These online platforms cash in on some aspect of the real estate pie. Overall, all these web services work along the lines of a traditional brokerage – where you need to go through a middle man to link with preferred property choice. Some people in Pakistan refer to real estate market investments as the ‘hard cash.’ The land price may observe stagnation and inactivity for a period, but it always rebounds. This explains why many people prefer buying open plots as opposed to apartments and houses.
Although Pakistan’s property market is going through a period of lackluster activity, market insiders are optimistic that the industry will witness a positive recovery soon. The incumbent government has taken various progressive steps in this regard. However, at the same time, they caution against making any abrupt changes to the rules and regulations – as it can have a detrimental impact on the real estate market.