Real estate of Pakistan

The real estate and property sector across Pakistan has been flourishing in the recent years, reflecting progress in the economy of the country. In particular, the mushrooming real estate markets in Pakistan have helped bringing attractive high return investment options to the table.

The property market in Pakistan has witnessed tremendous growth lately that revolves around numerous factors. The one factor that has influenced the real estate market of Pakistan the most is the low bank interest rate (The National Savings), which was decreased the interest rate from 18% down to 5%. This decrease in the interest rate initiated the tremendous boom in the realty of Pakistan, not just in one city but cities all over the country. Of recent the bank interest rate has once again climbed from 5% to 8%, but still the demand in the property market remains exuberant. 

Another factor that instigated the real estate boom in Pakistan is the enthusiasm shown by overseas Pakistani, diligently hankering to buy and invest in Pakistan’s realty. Reasons could be many that insinuated overseas Pakistani interest in Pakistani land. The first reason is none other but 9/11, the un-canny social and political scenario, torrents of media mockery on terrorism and racial backlash of westerners prompted people to plunge into the other side for investment. Another reason is that a lot of agricultural land is being converted into housing schemes. The availability, closeness to the city, and town planning itself has helped people toward buying and investing. Further more Gawadar port is also fast becoming the commercial hub of south eastern region and hence with government support and satiating laws the investment interest in Gawadar real estate is high.

However real-estate in Pakistan is a speculative market due to lack of statistics about demand and lack of regulations. In Pakistan, property market is a daily trading business based very much on daily demand, and only the people involved i.e. property dealers know the next price level and are in position to make profit.

Other difference is that Pakistan property market is all about inhibited plots unlike UK or US or even European real estate, further more; prices also stay stable for longer period in the real estate market than in Pakistan. Main reasons for all these differences are stringent rules & regulations or property laws.

While buying property in Pakistan, there are few things that should always be kept in mind. Before a deal is finalized always come equipped with all the necessary details and complete information about the law, rules and the deal itself. Do a through research on the property and consider all the pros and cons. Always get a reliable estate agent, before taking any decision. Rely on bank transitions instead of cash settlements.

By: Lamiya Sami

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