Any Piece of Land or property structured for the goal of making and building housing societies whether they are belonging to residential or commercial sector, it is called real estate. Real estate is linked with and focused on land related properties and projects. It includes purchasing a home, Rental land, Commercial land etc. It is distributed into numerous types of plans like Industrial, Commercial, Residential, apartments etc.
Real Estate trends in Pakistan and its development in the past few years is on hype and impacting the overall business situation.
The Real Estate Market in Pakistan from the past few decades have been growing and its cycle is fluctuating according to the country’s economy. This sector has offered numerous opportunities to the society whether it is for the investors or the residents. Real Estate market in Pakistan is vast and it contributes in 17% of country’s GDP by sharing its pieces in different real estate tasks like shares in services of construction sector, in housing society projects etc. There is a spike in the demand for residential properties in Pakistan since 2010 which lead to increased interest among real estate investors and developers. Real Estate in Pakistan has been beneficial for many sectors but mostly for young entrepreneurs looking for new work opportunities. The investors both locally and internationally are contributing in Pakistan’s real estate sector and making it grow with time. The fluctuating economy has undoubtedly affected the overall business but the real estate market has somehow managed to run the economic circumstances with a balanced state. In Pakistan, real estate is a popular investment option that has outperformed nearly all other asset classes in terms of returns. In the past ten years, houses have shown a compound return of almost 13%. In the past two years, this compounded return has reached nearly 18%.
In the Process of choosing the right time and option for dollar rate to increase or decrease, many investors faced an extreme loss in the real estate market. In Pakistan’s economic situation, dollar has never been stabilized. Dollar is fluctuating since always and creating difficult circumstances on economy of Pakistan. Dollar and Pakistani Real Estate have a very crucial and complicated relation. The increase in Dollar’s value directly affects property values and the prices of properties. Foreign exchange rates typically have little to do with real estate as long as locals are the only ones looking for buyers. However, when foreign investments are required to boost real estate, it can be risky to secure investments in a developing nation like Pakistan. Real estate entrepreneurs in Pakistan have begun to look for foreign investments in order to expand and improve their market because the country is already experiencing a hyperinflation that exceeds all previous records. As a result, property has less purchasing power.
Since the beginning of 2023, Pakistan’s real estate industry has been one of the fastest-growing segments of the country’s economy, and it continues to expand at a steady rate. Amnesties from the FBR and tax cuts for building projects are to blame for this growth. Among all the business options in Pakistan, Real Estate has been on top because of the flexibility in the investment plans and less risk of loss. Pakistan is complying with the IMF’s instructions to obtain the loan, despite its current poor economic situation. However, Pakistan’s informal and monetary economy means that people have a lot of money to put into real estate investments. In addition, many Pakistanis reside abroad and send monthly remittances totaling millions of dollars. As a result, Pakistani expats’ first aspiration is to acquire a home in Pakistan whenever they can afford it.
Pakistan’s construction business contributes a good amount in the country’s GDP. According to the economic survey of Pakistan 2.53% of GDP comes from Construction business and overall Real estate contributes a 16-17% in economy. The top companies growing fast in construction business in Pakistan are as follows: