Developing countries are considered resource-rich countries. These countries, because of their internal chaos and instability, often get into uncertain economic conditions which makes it difficult for the investors to put on their investment because of varying economic policies. Pakistan is one of these developing nations with uncertain political and economic conditions. Thus, it makes it an investor difficult to choose where to put on his money. Despite all this fiasco, the real estate sector is the golden hen in Pakistan.
Real estate sector’s worth in Pakistan
The only sector which guarantees a massive and immediate return of investment because of the large multitude of businesses and an array of industries coupled with the real estate sector. The growing upper middle class and a financially strong elite living class of Pakistan, too eager to secure their financial investment, eye the real estate sector worth investing in for an immediate return on their investment. Thus, the real estate sector is an ever-growing field coupled with an estimated 300-400 billion dollars of capital investment as per Wikipedia and the economic survey of Pakistan.
It is the second largest employment-generation sector in Pakistan after agriculture. Apart from direct employment, it also stimulates the demand of more than 400 industries of the economy from construction (cement, steel, paint, building material, architects, and urban planners) to financial services (house financing). As the government has increased amounts of various taxes, especially in terms of sales and purchases, strict measures were introduced to prove the money trail behind the investments within the last three years. consequently, this sector has suffered from a severe economic crisis, many offices of real estate consultants are closed, and millions of people affiliated with this sector are now starving
Trends in growth of the real estate sector over the last decade
The ever-growing market offers a range of opportunities; be it affordable housing, investment in commercial projects, investment in public housing, development of special economic zones in Pakistan, and development of infrastructure in Pakistan makes the sector pretty lucrative for investment.
The evolution of the real estate sector offered during 2010 made this business boom and linked and broadened the scope of the real estate business. Coupling of the construction industry which included dozens of small and mid-sized businesses, involvement of imported goods, and then the offering of a stable and secured source of income for the less privileged for a specific period of time makes this business one of the best possible businesses which ensures the safety of the capital investment.
The real estate market has had a very difficult time after the change of regime in 2018. It has faced financial, economic, and political challenges, several policy issues, and a lack of confidence. It barely managed to survive the earlier recession, mainly due to massive investments by overseas Pakistanis. The depreciation of the Pakistani rupee made property investment cheaper due to exchange rate benefits for overseas investors.