Developers in Pakistan have High Hopes for its Real Estate Market
Pakistan’s burgeoning real estate industry is scuttling towards a promising future. According to market experts, Pakistan’s real estate industry will thrive in 2016 owing to a wide array of residential and commercial projects undertaken by renowned real estate developers. The rise of Pakistan’s real estate sector has been predicted by many informed voices, despite the fact that the realty sector is facing a severe housing shortfall and has also been previously bogged down by skyrocketing taxes accompanied by a lack of transparency in property dealings. Regardless of the ongoing circumstances, real estate developers in the country have good reason to believe that every cloud has a silver lining.
According to online property portal Zameen.com survey conducted on real estate developers, most developersbelieve that the country’s real estate sector will register a growth of 74%. It also said that there was only a 7% chance of a decline in business activities in the property market, while market stability in the ongoing year is likely to remain at 19%. As is evident from the survey results, Pakistan’s real estate industry will maintain a positive outlook this year which will continue further into the future. Here are some reasons why the prospects for real estate business seem promising here.
Sharp Decline in Terrorist Activities
The long shadow of terrorist activities that blanketed Pakistan for so long is gradually retracting owing to timely military operations against militant outfits in the restive north-west region of the country along with directed operations carried out against terrorists in the port city of Karachi as well. These steps have been auguring well for the South Asian nation, especially on the economic front.
A recently published Worldfolioreport stated that Pakistan had witnessed a 70% decline in major terrorist activities in 2015, and the positive effects of this can be seen in 2016 in the shape of development activities happening around the country.
Due to improving law and order situation in Pakistan, the country’s economy is also getting back on track and is forecasted to grow by 4.5%.
Mega Development Projects Adding Value to Real Estate
Apart from improved security situation, other indicators that point towards solid growth in Pakistan’s real estate sector is the large number of foreign investments making their way into the country.Some major investments have come in the shape of $46 billion China-Pakistan Economic Corridor (CPEC) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline.
The CPEC project has been especially instrumental in influencing the rise of real estate projects in the relatively peaceful regions of Pakistan where the chances of terrorist activities is the lowest. The flow of heavy foreign investment into Pakistan has also allowed the country to increase its spending on construction activities by a huge margin.
A report published by the Pakistan Bureau of Statistics said that the country is spending $5.2 billionon construction every year.The initiatives taken by the government has gained the trust of real estate developers who have put their inhibitions aside and are once more investing their capital in the local property marker.
Growing Real Estate Value in Less Developed Areas
Over the past five years or so, the real estate industry has focused on developing cities and towns that were previously ignored at the expense of lucrative property markets of Karachi, Lahore, nd Islamabad. Recent trends of investments in Pakistan’s real estate show that more developers are now eyeing the property markets of Peshawar, Gwadar, Rawalpindi and Bahawalpur as the next big investment zones in the country.New projects have already been announced for these cities and construction activities are moving ahead with full force.Real estate developers have found the heart to invest in previously ignored regions of Pakistan after property prices rose considerably in the established housing markets of Lahore, Karachi and Islamabad.
Real estate developers in Pakistan have hopes that the local real estate market will thrive in the future since peace has been established in extremely restless corners of the country. Huge foreign investments flowing into the country for large-scale development projects is also helping the Pakistani real estate market to open up to a whole new world of possibilities. For instance, many foreign real estate developers are also setting camp here in order to make the most of opportunities available in the property market.
Therefore, it will not be wrong to say that the real estate industry of Pakistan is looking at a bright future where modern commercial and residential projects will be the norm of the day. Hopefully the bounties of these new developments will reach the haves and have-nots on the basis of equality.