Real Estate Report – Factors Driving Property Price Hike in Pakistan

Real Estate Pakistan is among the densely populated developing countries on the globe. So, the demand for residential projects never decreases by any passing day. This offers an ideal opportunity for investors in real estate of Pakistan to reap handsome profits out of their lucrative investments made on the rapidly growing real estate markets of Pakistan. In order to tap the vast resources of Pakistan’s real estate markets, one has to avail of the services of highly skilled professionals, who can deliver customized and personalized investments that are fit for the changing trends in the real estate sector of Pakistan.

 

There are many factors responsible for the sudden and inexplicable rise in the real estate market of Pakistan. To begin with, the government of Pakistan, along with the International Monetary Fund (IMF), has offered billions of dollars to upgrade and develop the overall infrastructure of the nation. All this has resulted in soaring construction and other major infrastructure projects across the country. These projects are helping the nation to gain access to cheaper supplies of energy and fuel, as well as help to modernize its defense industry. Furthermore, these projects have helped Pakistan to become more self-sufficient, despite its huge reliance on foreign aid.

 

Besides these crucial infrastructural developments, another contributing factor to the recent upsurge in the demand for properties in Pakistan is the current account deficit. The current account deficit refers to the difference between the amount of money being spent on the domestic market and the amount being earned at home. The current account deficit is a key factor that adversely affects national economic stability and confidence. According to the World Bank, Pakistan’s current account deficit stands at around 3.5 percent, which is much lower than the average of around seven percent. This means that there is immense scope for investors to earn good profits from their investment, as they can easily get a piece of this profitable market while maintaining a tight grip over their finances.

 

Real Estate analysts and property consultants expect a sharp increase in the demand for properties in Pakistan over the next five years. They also predict that prices for residential properties will increase by about fifteen percent, as the current account deficit continues to stay at high levels. Moreover, investors can expect the prices of both industrial and residential properties to increase by about ten percent during the same period of time. However, experts also caution investors to keep an eye on the weak real estate economy of Zimbabwe, which is expected to witness a correction in its real estate prices.

 

An interesting aspect of the Pakistan real estate markets is their ability to act as a platform for strong and steady economic growth. The rapid pace of urbanization across the country has led to greater employment opportunities. This has also resulted in better education, better healthcare facilities, and a better standard of living. The result is that there is an increasing demand for housing in Pakistan, both in urban areas and in rural areas.

 

However, many of these markets are lagging behind in terms of infrastructure and amenities. Although the increasing demand is causing rising prices in the housing sectors, many people in Pakistan remain skeptical about the future of the economy. These doubts are fuelled by the fact that there have been numerous cases of corruption in the real estate sector in previous periods, and that the benefits of booming economic growth seem to have escaped ordinary Pakistani citizens.

 

One of the main factors contributing to the optimism of the Pakistan real estate market is the imminent completion of the massive housing project known as the South Asian Building Program. The first phase of this project, known as Fensi-Kutari, is expected to be completed by the end of next March. Once operational, it is expected to house over ten million residents from across Pakistan and India. Other significant projects underway in Pakistan include the Teesta Islamic Medical University (TIMU), a medical university that will be based in Karachi and eventually spread all across Pakistan.

 

Other projects expected to increase the demand in Pakistan’s real estate sector include the Teesta Higher Education Institute (HEI) at Quetta and the Pakistan International Academy of Management and Communication (PIAC). The latter is expected to provide state of the art training to professionals from Pakistan and India who want to pursue higher education in international destinations. The price hike in housing in Pakistan can be attributed in part to the growing demand from both domestic and foreign investors.

By | 2020-12-31T11:56:11+00:00 December 31st, 2020|Uncategorized|0 Comments