Pakistan's Real Estate

Real estate in Pakistan has been growing at an accelerated pace in the past few years, and this growth has become even more pronounced since the start of the millennium.

There are many reasons behind this phenomenal growth, and most analysts believe that the market will continue to boom over the next five years, although at a somewhat slower rate than it has been doing so far. Considering these expectations, here are some things that you can do to maximize your profits while working within the current real estate scenario in Pakistan.

You may also like to learn about the Nova City Islamabad.

Scope Of Real Estate in Pakistan

The real estate sector has been showing promising growth in recent years. Many companies have shown interest to invest and work on it, resulting in increased job opportunities, production, and sales. The sector is expected to grow at a rate of 10% per annum.

The key driving factors for investment and growth are improving security situation, stable economic environment, and sound management & administrative infrastructure.

Lack of transparency is one major drawback holding back growth in residential housing projects; however, there are many institutional investors involved as well as local private players who have taken interest and will continue to do so because there is high potential with a good return on investment.

The Expectation of Pakistani Youth on Real Estate Business

According to a survey conducted by GeoPoll, the majority of Pakistani youth see the real estate business as an opportunity for investment. The survey was conducted on 500 people who are at least 18 years old and residing in four major cities Karachi, Lahore, Islamabad, and Rawalpindi.

According to the survey majority (62%) of respondents are looking for investment options and more than half (55%) have bought their own residence. A quarter (25%) of respondents have rented out their property while 15% have purchased commercial property. Get the idea from kingdom Valley.

The Expectation of Pakistani People on New Projects

The people hope that there will be great construction activities because investment is not a problem anymore. So, many companies have invested billions of rupees for their new projects and development. There are high expectations from every field but one thing which is worth mentioning here is about real estate; it has increased as much as 400% over the last few years.

It depends on the actual sector, some sectors like IT, FMCG, etc. have achieved huge heights within the very short time period, but on other hand, others are still struggling hard to achieve a respectable position in the market. In coming five years or so, you may expect an increase in property value ranging from 50%-80% while local developers may target a 200% increase after the government relaxed restriction policy toward property development.

The Expectation of Foreign Investors on Pakistan

Foreign investors have a higher expectation from the real estate sector than others. The future looks very promising for Pakistan, with a more young population and unemployment rate being one of its biggest problems, solutions can be found through investment in real estate.

Investment from foreign investors is mostly expected to come to Karachi and Lahore first followed by Islamabad and Faisalabad. Foreigners expect that Karachi will witness almost 20-30% average growth within the next five years which will automatically be followed by Lahore and Islamabad.

The Expectation of Chinese Investors in Pakistan Real Estate

A Chinese real estate developer is launching a housing project in Peshawar, which is an indication that Chinese investors have started eyeing Pakistan’s real estate market. Experts see great potential for mutual investment opportunities. The new property development will be located in an area that is situated near a major motorway and close to both commercial and residential areas. This shows Chinese investors have a high expectation of the Pakistani real estate market.

Overall, it is expected that Pakistan’s economy will grow further as foreign investment pours into various sectors, including infrastructure development and especially the real estate sector. It is expected that over 40 percent growth in volume will be observed from 2016 to 2020 when compared with the previous five years’ data.

Conclusion

In conclusion, now Pakistani people are eager to invest money in real estate. The government is also supporting people in investing their money on real estate. So, there is an expectation that if you have enough money then it is not a waste of time to invest your money in real estate which will be helpful for you even after five years.

You can make a good profit from investing your money in real estate because there are many new projects launched by different renowned companies.

Author Bio

Muhammad Junaid is the CEO of VM Solutions, senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in NextGen Marketing – Park View City. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.