Real estate in Pakistan is a growing sector of the

economy of Pakistan Pakistan is a low income developing country. Its economy is the 23rd-largest worldwide in terms of GDP based on purchasing power parity (PPP). According to a 2021 estimate, the Country has a population of 227 million people ( 5th-largest wo ...

Real Estate Demand

Demand for residential properties in Pakistan grew in 2010, leading to increased interest among real estate developers and

investor An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...

s. 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 The Government of Pakistan ( ur, , translit=hakúmat-e pákistán) abbreviated as GoP, is a federal government established by the Constitution of Pakistan as a constituted governing authority of the four provinces, two autonomous territorie ...

announced a reduction in

interest rate An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, ...

s on mortgage loans in 2012. In 2017, the housing gap in

Punjab Punjab (; Punjabi: پنجاب ; ਪੰਜਾਬ ; ; also romanised as ''Panjāb'' or ''Panj-Āb'') is a geopolitical, cultural, and historical region in South Asia, specifically in the northern part of the Indian subcontinent, comprising a ...

, 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. 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. According to
report
the population in Pakistan has grown by a

CAGR Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some ele ...

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. According to the

Pakistan Bureau of Statistics usman The Pakistan Bureau of Statistics ( ur, , abbreviated as PBS) is a federal agency under the Government of Pakistan commissioned the national statistical services and to provide solid and comprehensive statistical research. Results c ...

, construction output accounts for 2% of GDP, with

housing Housing, or more generally, living spaces, refers to the construction and assigned usage of houses or buildings individually or collectively, for the purpose of shelter. Housing ensures that members of society have a place to live, whether i ...

representing less than half that total. With the rate of

urban Urban means "related to a city". In that sense, the term may refer to: * Urban area, geographical area distinct from rural areas * Urban culture, the culture of towns and cities Urban may also refer to: General * Urban (name), a list of people ...

ization that Pakistan has been experiencing, there is a growing need for

urban planning Urban planning, also known as town planning, city planning, regional planning, or rural planning, is a technical and political process that is focused on the development and design of land use and the built environment, including air, water, ...

Real estate regulatory authority

Prime Minister

Imran Khan Imran Ahmed Khan Niazi ( ur}; born 5 October 1952) is a Pakistani politician and former Cricket captain who served as the 22nd Prime Minister of Pakistan from August 2018 to until April 2022, when he was ousted through a no-confidenc ...

has recommended the formation of the Real Estate Regulatory Authority, while the Association of Builders and Developers is against its formation.

Real estate education

NED University of Engineering & Technology The NED University of Engineering & Technology is a public university located in the urban area of Karachi, Sindh, Pakistan. It is one of the oldest and best engineering universities in Pakistan, acknowledged for its best teaching practices an ...

offers Master of Science in Real Estate Management. Panjwani Institute of Business Studies & Technology offers Professional Diploma in Real Estate Management NIREM (National Institute of Real Estate Management) offers Real Estate Professionals Development Program.

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 In the economics study of the public sector, economic and social development is the process by which the economic well-being and quality of life of a nation, region, local community, or an individual are improved according to targeted goals and ...

of the country. "

Construction sector Construction is a general term meaning the art and science to form Physical object, objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Pr ...

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.

References

{{Asia topic, Real estate in Housing in Pakistan Construction and civil engineering companies of Pakistan