Real estate in Pakistan is a growing sector of the

economy of Pakistan The economy of Pakistan is categorized as a developing economy. It ranks as the List of countries by GDP (PPP), 26th-largest based on GDP using purchasing power parity (PPP) and the List of countries by GDP (nominal), 44th largest in terms of ...

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 on capital, return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of pr ...

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 () (abbreviated as GoP), constitutionally known as the Federal Government, commonly known as the Centre, is the national authority of the Islamic Republic of Pakistan, a federal republic located in South Asia, con ...

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 (; ; also romanised as Panjāb or Panj-Āb) is a geopolitical, cultural, and historical region in South Asia. It is located in the northwestern part of the Indian subcontinent, comprising areas of modern-day eastern Pakistan and no ...

, 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 Population growth is the increase in the number of people in a population or dispersed group. The World population, global population has grown from 1 billion in 1800 to 8.2 billion in 2025. Actual global human population growth amounts to aroun ...

, lower

interest rates 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, ...

, and tax incentives, the poor quality of available properties, and the

subsidy A subsidy, subvention or government incentive is a type of government expenditure for individuals and households, as well as businesses with the aim of stabilizing the economy. It ensures that individuals and households are viable by having acc ...

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 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 around $1.8 trillion. According to the

Pakistan Bureau of Statistics The Pakistan Bureau of Statistics (PBS) () is a federal agency under the Government of Pakistan. It is an attached department of the Ministry of Planning, Development & Special Initiatives. It works for collecting statistics in the country. Hi ...

, construction output accounts for 2% of GDP, with

housing Housing refers to a property containing one or more Shelter (building), shelter as a living space. Housing spaces are inhabited either by individuals or a collective group of people. Housing is also referred to as a human need and right to ...

representing less than half that total. With the rate of urbanization that Pakistan has been experiencing, there is a growing need for

urban planning Urban planning (also called city planning in some contexts) is the process of developing and designing land use and the built environment, including air, water, and the infrastructure passing into and out of urban areas, such as transportatio ...

Real estate regulatory authority

Prime Minister

Imran Khan Imran Ahmed Khan Niazi (born 5 October 1952) is a Pakistani politician, philanthropist, and former cricketer who served as the 19th prime minister of Pakistan from August 2018 until April 2022. He was the founder of the political party Pak ...

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 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 economics, economic development (or 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 object ...

of the country. "

Construction sector Construction are processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the a ...

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.

Real estate and Finance Bill 2023-24

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.

Illegal housing societies in Rawalpindi

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.

Illegal housing societies in Islamabad

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. The list of illegal housing societies in Islamabad is also available online.

References

{{Asia topic, Real estate in Housing in Pakistan