Real estate in Pakistan is a growing sector of the economy of Pakistan.
Real Estate Demand
editDemand for residential properties in Pakistan grew in 2010, leading to increased interest among real estate developers and investors. Since prices have exceeded 10 million PKR, new housing developments are often aimed at the upper middle class. To assist the real-estate sector, the Government of Pakistan announced a reduction in interest rates on mortgage loans in 2012.[1][2]
In 2017, the housing gap in Punjab, one of the largest provinces of Pakistan, was around 2.3 million units, this figure is expected to reach the figure of 11.3 million units by the end of 2047.[3]
The prominent factors causing the shortages includes rural-to-urban migration, population growth, lower interest rates, and tax incentives, the poor quality of available properties, and the subsidy schemes, like Roshan Apna Ghar, Mera Ghar Mera Pakistan, etc., in urban areas of the country.[4]
According to a report, the population in Pakistan has grown by a CAGR of 2.1% between FY16 and FY21. With the given trend, the figure would reach 231.58 million in FY23.
The overall real estate industry contributed significantly to Pakistan's GDP during the stated period with a growth rate of between 5.4 % and 5.9%.
Real estate sector worth
editMoreover, many more billions are spent on buying residential and commercial plots. Pakistan's real estate sector is worth around $1.8 trillion. According to the Pakistan Bureau of Statistics,[5] construction output accounts for 2% of GDP, with housing representing less than half that total. With the rate of urbanization that Pakistan has been experiencing, there is a growing need for urban planning.[6][5]
Real estate regulatory authority
editPrime Minister Imran Khan has recommended the formation of the Real Estate Regulatory Authority, while the Association of Builders and Developers is against its formation.[7]
Real estate education
editNED University of Engineering & Technology offers Master of Science in Real Estate Management.
Panjwani Institute of Business Studies & Technology offers Professional Diploma in Real Estate Management[8]
NIREM (National Institute of Real Estate Management) offers Real Estate Professionals Development Program.[9]
Real estate agents
editAccording to FPCCI (The Federation of Pakistan Chambers of Commerce and Industry), real estate agents are playing an important role in the economic development of the country. "Construction sector has grown by 9% which indicates its strength but this robust sector needs help of the real-estate sector," it said in a 2017 statement.[10]
Real estate and Finance Bill 2023-24
editPoor economic situation in 2023 is one of the reasons behind low investment in real estate. Besides, some parts of the Finance Bill 2023-24 are angering realtors. The real estate market is not getting enough investments because people are getting a high interest on their bank deposits. The growth prospects of the sector are shattered by the imposition of an 18.5% tax on non-filers. Real estate leaders are calling for immediate reforms to put the industry on right track.[11]
Illegal housing societies in Rawalpindi
editThe Rawalpindi Development Authority (RDA) has declared more than 300 housing societies illegal. The management of the RDA has announced that 69 housing societies are authoirized to operate in Rawalpindi.[12]
Illegal housing societies in Islamabad
editOver 111 housing societies in Islamabad have been declared illegal by the Capital Development Authority (CDA) as per the statistics available with the National Assembly Standing Committee on Climate Change and Environmental Coordination.[13] The list of illegal housing societies in Islamabad is also available online.[14]
References
edit- ^ Qureshi, Shehryar (12 March 2013). "Experts Predict A Prosperous Future For Pakistan Real Estate Sector". REIClub. Archived from the original on 15 August 2013.
- ^ "Real estate: Abu Dhabi Group to invest $45 billion in Pakistan", The Express Tribune, 16 February 2013.
- ^ "Managing supply and demand: The key to getting "housing" right in Pakistan". blogs.worldbank.org. Retrieved 2022-10-28.
- ^ "Managing supply and demand: The key to getting "housing" right in Pakistan". blogs.worldbank.org. Retrieved 2022-10-28.
- ^ a b "Pakistan Bureau of Statistics". www.pbs.gov.pk. Retrieved 2020-09-11.
- ^ Atiq, Syed Khurram (2020-03-12). "Pakistan's 2020 real estate prospects and challenges". Profit by Pakistan Today. Retrieved 2020-09-11.
- ^ Raza, Syed Irfan (2020-07-24). "PM orders establishment of real estate regulatory body". DAWN.COM. Retrieved 2020-07-24.
- ^ "Professional Diploma in Real Estate Management – PIBSAT". Retrieved 2020-04-30.
- ^ Limited, Set Private. "NIREM - National Institute of Real Estate Management". NIREM - National Institute of Real Estate Management. Retrieved 2020-07-16.
{{cite web}}:|last=has generic name (help) - ^ Mcgraw, Sarrah (May 30, 2017). "FPCCI vows support to real estate agents". Tribune.
- ^ "Realtors express concerns as real-estate sector reels". The Express Tribune. 2023-07-23. Retrieved 2023-09-27.
- ^ Web Desk, Samaa (September 25, 2023). "Over 300 housing societies declared illegal". Samaa News. Retrieved September 30, 2023.
- ^ Staff, ProPK (September 25, 2023). "More Than 100 Housing Societies Are Illegal in Islamabad". Pro Pakistani. Retrieved September 30, 2023.
- ^ Staff, ProPK (July 31, 2023). "List of All Illegal Housing Societies in Islamabad". Pro Pakistani. Retrieved September 30, 2023.