Pakistan’s real estate market is regarded as one of the most profitable, allowing investors to profit greatly from both their short- and long-term property investments. also, it makes a significant contribution to the nation’s Gross Domestic Product (GDP).
With so many brand-new, cutting-edge projects currently being introduced, both domestic and foreign investors have begun to show a significant interest in the real estate market, which has led to an increase in property prices in recent years.
Despite such a rapid rate of development, Pakistan’s real estate industry nevertheless faces difficulties. These problems could have a negative effect on nearly every major industry participant in a variety of ways, which frequently results in unanticipated delays in the creation and introduction of real estate initiatives.
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Delayed housing project completion could result in investors losing faith in and interest in real estate investment opportunities, harming the real estate industry. All of the real estate and construction industries remain afloat and advance due to the trust element between investors and stakeholders. Dealing with this issue is sensitive and extremely important.
THE PRESENT REAL ESTATE CONTROVERSIES IN PAKISTAN (AND THEIR SOLUTIONS)
The biggest obstacles and potential growth areas for Pakistan’s real estate sector in 2021 are listed below.
- Deficit in Housing Units
- Misinformation about the real estate industry and a lower awareness of the advantages of technology
- Limited Resources for Real Estate Education
- Pakistan has an increasing need for a Real Estate Regulatory Authority (RERA).
BRIEFING OF HOUSING UNITS:
Due to the country’s steadily growing population, Pakistan has recently experienced a severe housing crisis. In both urban and rural areas, Pakistan had a backlog of almost 10.3 million housing units, according to a 2019 estimate. By 2025, 17.4 million additional dwelling units are anticipated to be needed.
However, the current administration has made some significant moves to partially resolve the nation’s housing situation. The Prime Minister Imran Khan’s announcement of the Naya Pakistan Housing Program is the most notable step in this regard.
In accordance with this scheme, the government offers affordable housing options to close the housing supply and demand gap nationwide. The country’s steadily growing population, Pakistan has recently experienced a severe housing crisis. In both urban and rural areas, Pakistan had a backlog of almost 10.3 million housing units, according to a 2019 estimate.
By 2025, 17.4 million additional dwelling units are anticipated to be needed.
However, the current administration has made some significant moves to partially resolve the nation’s housing situation. The Prime Minister Imran Khan’s announcement of the Naya Pakistan Housing Program is the most notable step in this regard. In accordance with this programme, the government offers affordable housing options to close the housing supply and demand gap nationwide.
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Launching the “Mera Pakistan Mera Ghar” scheme in cooperation with the State Bank of Pakistan is another extremely notable action performed by the federal government (SBP). This markup subsidy programme, sometimes referred to as the “Apna Ghar Sasta Karz” scheme, intends to offer housing loans at low markup rates.
Pakistan’s Real Estate Regulatory Authority (RERA)
Without a proper body regulating a certain industry, it would always be vulnerable to various concerns and problems. The establishment of a regulatory body to oversee the real estate sector, one of the biggest business sectors in the nation, is still pending.
“There is no regulatory authority here if you’re talking about legal matters involving real estate. According to Imran Ali Khan, CEO of EMPG, a regulating body ought to be established. His statements amplified the significance and necessity of Pakistan’s Real Estate Regulatory Authority.
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RESEARCH & WRITTEN BY:
SANAH ABBASI