Pakistan’s real estate business is one of the most important industries, contributing significantly to the country’s economic development. As per World Bank estimates, Pakistan’s real estate assets account for 70 to 75 percent of the country’s net worth. Due to several financial, social, and political issues, the country’s property market was not doing well in 2019. 2020, on the other hand, was surely a fantastic year! It began with a significant crash, resulting in a global economic crisis resulting from Covid-19, but it concluded on a very different note.
An Overview of Pakistani Real Estate in 2020
For Pakistan’s real estate sector, 2020 was a game-changer. It began with a significant crash, but it concluded with a slew of rewards for everyone involved in the industry. The leniency policy, PM Imran Khan’s construction assistance package, and new laws for selling and acquiring property have had a favorable impact on the country’s real estate.
All of the government’s packages have proven to be beneficial to Pakistan’s real estate market. However, since the government announced that people might build projects and residences without identifying their income source, property prices have risen by 20% to 30%. Property prices have indeed risen like a rocket as a result of this development relief program. But, on the whole, Pakistan’s real estate market had a solid year.
The Current Property Market Situation
Property prices have remained constant in the last two months of 2020. On the other hand, the Pakistani government has stated that it will extend its construction aid package until December 31, 2021. This revelation has reignited the positive sentiment, and home values have begun to rise once more. However, now is the moment to invest with caution, as property prices are behaving highly speculatively.
The government’s construction assistance package primarily targeted development and building. However, the plot sector, which includes non-possession plots, has a good proportion. Many societies have begun to produce non-possession properties and have proclaimed possession for investors to start building their projects/homes as soon as possible. We can anticipate an increase in property prices until mid 2021. Hopefully, it’s the correct assumption.
Pakistan’s Real Estate Market is Expected to Grow
Pakistan’s real estate sector will have an eventful year in 2021. This year would be really favorable, but we must consider a number of elements to make these real estate market predictions for 2021. But, most crucially, our administration appears to be concentrating its efforts this time on real estate development like Capital smart city, Lahore smart city and other top project of real estate. As a result, we may predict that in 2021, Investors will invest more unreported money in real estate. Furthermore, it’ll be a good year, particularly for building projects and ownership areas.
Therefore, 2021 would be an excellent year to invest in the real estate market. On the other hand, the development will yield a higher profit, while plot trading can be a backup choice. Since becoming Pakistan’s prime minister, Imran Khan has implemented a number of changes and improvements to the country’s real estate sector, which are inextricably linked to the country’s economy in a variety of ways, including:
- The majority of these modifications were made to increase government tax income.
- It prevents the real estate business from making speculative purchases.
Consequently, these developments investors have decreased their investment in Pakistan’s real estate market, putting the country’s economy in jeopardy.
What does the year 2021 hold for real estate?
In 2020, the real estate market was impacted by the pandemic and an unpredictable political climate. We can only hope that things will improve and that the property market will begin to find buyers in the coming years. The China-Pakistan Economic Corridor (CPEC) is a momentous undertaking. The economic corridor has the potential to attract a large amount of international investment.
The megaproject’s web of roads connects Pakistan’s Gwadar port to China’s Xinjiang capital. This corridor would facilitate both countries’ commercial activity and provide new chances for growth for Pakistan’s real estate sector. The real estate market in Gwadar and its environs is likely to surge as the center of CPEC activity.
Before making a real estate investment, you should look at several asset categories such as residential properties, apartments, homes, and business units, including offices, residential, industrial, and farmlands. You should make sure that you engage intangible assets rather than just a contract or bit of paper. We never advise you to hire deceptive products or documents that purport toward being real estate and have no physical presence or value.
Pakistan’s real estate strategy is sound. The real estate sector attracts both domestic and international investment. Aside from that, other residential and industrial developments are in the works across the country, offering excellent investment prospects. These residences are legal and have repayment options that are appealing to investors.
M Junaid Lead Writer, Content Marketer at Sigma Properties | Rudn Enclave Rwp, A writer by Day and reader by night