Overview of Pakistan’s Real Estate Market:
Pakistan’s real estate market is seemed to show growth even as foreign direct investment drops or infrastructure disbursements remain miserly.
A growth of 118% is shown in the real estate market of the country. This high progress rate can be endorsed to strong demand from regular investors, honest buyers and better security condition.
Karachi shows exceptional growth with the highest statistics coming from the Gawadar port city’s residential plots. The price of an average residential plot in Karachi was Rs2, 276 per square feet in 2011 but has now increased to Rs8, 089 in 2016. The city forwarded a progress of 255% in real estate of Karachi during last five years.
Lahore’s situation is not that dissimilar. Data showed that average prices of residential plots have increased to 149% during the previous five years. Average price in the city ascended to Rs3,339 per square feet in start of the year 2016 from Rs 1,336 in beginning of 2011.
The country’s capital city Islamabad also displayed an average growth of 143% in residential plots, where prices were Rs1,108 per square feet in 2011 and stretched to Rs2, 699 per square feet in the year 2016.
It is expected that the growth will continue to depict increasing trend because of the increasing developments and demand for accommodations.
Pakistan’s economy is showing growth with the progress of China Pakistan Economic Corridor (CPEC) which is coming up with additional opportunities for the economy together with the real estate sector.
Outcome of CPEC is already marked in Gawadar, where real estate prices have grown up to 70%. Prices progression of around 200% has been documented over the past few years in certain regions of Gawadar.
There is very minute or no awareness of mortgage finances in Pakistan for buying land or a housing unit. People here typically deal in cash. The mortgage market in India is 10% of their economy and it is mostly dealing in apartments and housing units instead of land. In four cities of India, housing projects are almost 50,000, while total housing schemes in Pakistan are about 2,000.
The trend of gated communities in mega and second rank cities is becoming common.
Real estate sector needs to be organized requires to get precise data. It can simply be carried out by bringing regulations and reforms.