Real estate in Pakistan is a growing sector of theeconomy of Pakistan.
Demand for residential properties in Pakistan grew in 2010, leading to increased interest among real estate developers andinvestors. Since prices have exceeded 10 millionPKR, new housing developments are often aimed at the upper middle class. To assist the real-estate sector, theGovernment of Pakistan announced a reduction ininterest rates on mortgage loans in 2012.[1][2]
In 2017, the housing gap inPunjab, 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, lowerinterest rates, and tax incentives, the poor quality of available properties, and thesubsidy schemes, like Roshan Apna Ghar, Mera Ghar Mera Pakistan, etc., in urban areas of the country.[4]
According to areport, the population in Pakistan has grown by aCAGR 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%.
Moreover, many more billions are spent on buying residential and commercial plots. Pakistan's real estate sector is worth around $1.8 trillion. According to thePakistan Bureau of Statistics,[5] construction output accounts for 2% of GDP, withhousing representing less than half that total. With the rate ofurbanization that Pakistan has been experiencing, there is a growing need forurban planning.[6][5]
Prime MinisterImran Khan has recommended the formation of the Real Estate Regulatory Authority, while the Association of Builders and Developers is against its formation.[7]
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]
According toFPCCI (The Federation of Pakistan Chambers of Commerce and Industry), real estate agents are playing an important role in theeconomic 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]
Poor 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]
The 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]
Over 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]
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