Real estate in Pakistan

Real estate in Pakistan is a growing sector of the economy of Pakistan.

Real Estate Demand

Demand 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

Moreover, many more billions are spent on buying residential and commercial plots. Pakistan's real estate sector is worth anywhere between $300 and $400 billion.[5] According to the Pakistan Bureau of Statistics,[6] 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.[5][6]

Real estate regulatory authority

Prime 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

NED 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

According 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]

References
  1. Qureshi, Shehryar (12 March 2013). "Experts Predict A Prosperous Future For Pakistan Real Estate Sector". REIClub. Archived from the original on 15 August 2013.
  2. "Real estate: Abu Dhabi Group to invest $45 billion in Pakistan", The Express Tribune, 16 February 2013.
  3. "Managing supply and demand: The key to getting "housing" right in Pakistan". blogs.worldbank.org. Retrieved 2022-10-28.
  4. "Managing supply and demand: The key to getting "housing" right in Pakistan". blogs.worldbank.org. Retrieved 2022-10-28.
  5. Atiq, Syed Khurram (2020-03-12). "Pakistan's 2020 real estate prospects and challenges". Profit by Pakistan Today. Retrieved 2020-09-11.
  6. "Pakistan Bureau of Statistics". www.pbs.gov.pk. Retrieved 2020-09-11.
  7. Raza, Syed Irfan (2020-07-24). "PM orders establishment of real estate regulatory body". DAWN.COM. Retrieved 2020-07-24.
  8. "Professional Diploma in Real Estate Management – PIBSAT". Retrieved 2020-04-30.
  9. Limited, Set Private. "NIREM - National Institute of Real Estate Management". NIREM - National Institute of Real Estate Management. Retrieved 2020-07-16.
  10. Mcgraw, Sarrah (May 30, 2017). "FPCCI vows support to real estate agents". Tribune.
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