The real estate business in Pakistan contributes significantly to the country’s economic development. Following the COVID-19 pandemic and the locust onslaught in Pakistan last year, the country’s economic growth came to a halt. Because of the emergency, many Pakistanis were forced to sell their assets and maintain cash on hand. These bizarre events had a negative impact on almost all of the country’s economic marketplaces. However, one market remained undefeated despite the difficulties and emerged as a winner. For a long time, Pakistan’s real estate business has been the country’s highest-earning economic sector. This is because tens of thousands of new real estate projects are announced every day around the country! This sector’s economic growth has been a significant contributor to the country’s overall economy.
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The Economic Impact of Real Estate
Housing, construction, retailing, hoteling, and rental of facilities for official or trading reasons fall under the real estate sector, which has steadily evolved into a major source of economic growth in Pakistan. Real estate can be the economic backbone of any country. Cement, lumber, building, sanitary fittings, glass manufacture, steel, furniture, paint, plastics, electric fittings, wires, and electronics are among the more than 200 businesses in Pakistan that rely on real estate. The building and housing sectors’ total contribution to the country’s GDP has continuously been higher than 9%. (The Nation, 2020). Real estate provides a reliable source of income with the opportunity for capital growth and diversity. Real estate values rise in lockstep with GDP, providing a direct way to share economic prosperity. In the past, successive administrations have mostly ignored the real estate sector, and the lack of a strong regulatory framework has stifled the sector’s growth and potential. The current government has finally chosen to pay attention to the sector and devise a plan for its rebirth, eventually upgrading it to the status of an industry.
Real Estate’s Potential
The property market in Pakistan is worth more than $1 trillion. This helps to explain why the sector is worth more than three times Pakistan’s GDP. In 2019, Pakistan received $21.8 billion in remittances. According to a World Bank analysis, the real estate value in a country is directly related to foreign investments and remittances. Because most overseas Pakistanis invest in real estate, and because conducting a business from abroad is difficult in Pakistan, the sector is expected to grow exponentially in the future. Finally, real estate is a lucrative professional route for youth. As the market for business degrees grows increasingly crowded, the real estate industry offers the potential to extract significant development from Pakistan’s economy. Pakistan’s real estate market is expected to rise exponentially in the future. Given Pakistan’s massive unmet housing demand, conservative estimates put the country’s housing backlog at 9 million units, growing at a rate of 300,000 units each year. It cannot be met without expansion in the construction and housing financing industries.
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Market Conditions and Inflation Rates Right Now
We have verified our portfolio of construction projects at Globe Estate and Builders, which has expanded considerably since 2020 and is picking up steam in 2021. As investment realisation grows, projects like Goldcrest, Indigo Heights, and Downtown Mall Liberty perform far beyond expectations. For a cautious investor, the new real estate market is great. I would also recommend that you use our investment advisory services in the future. It’s a small price to pay for opportunities that might help you gain millions, and we’ll spell out our tactics for you ahead of time and help you save. The plots market isn’t all doom and gloom, as DHA Peshawar has quadrupled, and in some cases tripled, investment in just two years and is now at an all-time high. On the other hand, DHA Lahore was developed from the bottom up and is a lucrative investment opportunity for property investors. Read more about kingdom valley islamabad payment plan.
Last Thoughts
The property market has the potential to become Pakistan’s largest contributor to GDP. Real estate encompasses more than 200 different sectors. Growth in this industry would ease Pakistan’s housing crisis and offer a large number of job possibilities for the country’s youth. There are various reasons why real estate, such as tourism and CPEC-related development, has the potential to flourish. Pakistan should devise a strategy to address the issues investors and purchasers are now encountering in the real estate industry. Real estate transparency and regulation will always be important building blocks for the sector’s future success. Do you know the projects of Sigal Developments?
Author Bio
Ramza Zahra is a Karachi-based freelance content writer who uses her life experiences and curious nature to research and pen it down and make a living. Currently, she is working with Sigma Properties as an Snr. Content Writer.