The housing market worldwide has experienced a transformation over the last two decades. The fusion of reality and digital has changed the real estate market– particularly for end-users. What the developed countries experienced in the first decade of the century, developing countries like Pakistan and others started to experience in the second decade only.
The last two decades have seen astonishing developments in Pakistan’s real estate sector. One could divide it into many distinct phases. All of these have changed the outlook of the market.
The rise of luxury Housing
The return of a large number of Pakistani diaspora in the 21st century caused a boost to luxury housing facilities. These were mostly wealthy families that are familiar with rich nations’ lifestyles. From their return to their homeland, they want to have similar amenities.
These market forces meant that some developers, including Bahria Town and Defence Housing Authority (DHA), became famous as they catered to a particular demographic. They were successful in this venture, and it forced other developers to follow the same path, promoting the idea of luxury housing in Pakistan.
As we can witness in Islamabad, major projects relating to residential and commercial schemes are underway. For Instance, Al-Ghurair Giga Pakistan is famous for constructing exceptional and farsighted projects. They believe in creating and enhancing the places that people work, live, and play in by understanding the varying requirements of societies. Besides, they have built some of the most elegant projects, including Malls and apartments in Islamabad, and they are Giga Mall, D Mall, Lignum Tower, Defence Tower, Defence Executive, El Cielo, and many more to come.
Review of 2018 Real Estate situation
In the year 2018, we witnessed the real estate market have inactive progress, in terms of innovative styles/decors and construction as well. We also observed property scams/frauds and scandals at different places around the country. So basically, people in Pakistan are very curious as to what the upcoming years will offer for the property market.
Anyhow, the market has proved to be the most productive investment terminal in the year 2018, and for the past few decades as well. The appealing returns combined with low tax and estimation absorb a considerable chunk of investment to get the profit back.
We have witnessed massive growth in a few areas in the year 2018, including each state of Pakistan. It seems to be a competition for developers who wanted the market to grow at a standard level. Karachi, Lahore, Islamabad, and many other considerable regions of Pakistan are on this list. Developers are regularly on the look for engaging spots around different major cities to provide people with profitable investments.
Pakistan Real Estate Sector 2019
Property prices will decrease when there is less property demand. In the year 2019, the property demand is comparatively lower in Pakistan as few people are interested in buying a property due to increasing prices. Consequently, this may be the right time to invest in the Real Estate Sector in Pakistan. There is a pool of supply of properties in Pakistan as there are many ongoing mega projects under construction, or some of them are yet to be constructed, which enhances the supply, but at the same time, as the demand is low, the prices have fallen.
There is a basic rule on which the real estate sector works, demand and supply wise. Demand or the interest of the investors and buyers shows the amount of investment the sector is going to experience, whereas supply indicates property stock. The interest of the investors and buyers for investment purposes increases the demand, which results raise in property prices.
Since 2005, the Real Estate Sector has been witnessing many ups and downs. In comparison to 2017 and 2018, property transactions have been recorded as very low in 2019. Property prices spiraled up to 120 percent due to improvements in the security situations in the metropolis of the country. Pakistan’s Real Estate sector witnessed high demands from buyers and investors. Similarly, overseas Pakistanis have shown great interest in this sector, along with businessmen and industrialists. Nonetheless, their purchasing powers seemed to decline due to booming prices. But, in the midst of the year when the law and order situation of the country seems to be in favor of the census, people continued to invest in real estate.
Rise in Investment in 2020
While the property market may have seen downtimes in the past 3 to 4 years due to the unstable political and economic conditions of Pakistan, 2020 real estate sector is expected to see a surge in investments. We expect a rise in investments in the property market because there are several new developments that are underway throughout the country that will undoubtedly affect the real estate sector upon their completion.
After examining the situation till the mid of the year, it can be concluded that 2020 will prove to be a moderate year for Pakistan’s Real Estate Sector due to rising interest rates, economic conditions, and strict black money laws that have kept the market subdued. Investors can also expect a big decline in prices if the situation remains the same, which in turn gives them the advantage to buy properties for long-term profit.
All these modern developments in Gwadar city, new amendments in the real estate sector, new government, and new hopes will definitely attract modern investors and clients to invest in real estate in 2020. Further, the declining value of the dollar will also force investors to invest in the best properties to earn handsome returns. So here we can hope that the future of the real estate market in 2020 and onwards, especially in Pakistan, is really bright and profitable.