REAL ESTATE SECTOR OF PAKISTAN
The back bone of any country’s economy is its real estate sector and it plays apivotal role in the growth of the country. More than 250 allied industries are directly or indirectly linked to the real estate industry and depend upon the real estate activity in a country for them to thrive, create jobs and play their part in the growth of economy.
The national real estate industry of Pakistan is estimated to be in excess of USD 700 Billion approx. The national construction output accounts for approx. 3% of Pakistan’s total GDP. With the introduction of USD 62 Billion CPEC (China Pakistan Economic Corridor), massive Chinese investments are pouring into energy, infrastructure and development projects across Pakistan. CPEC has further triggered the real estate activity in Pakistan as demand for commercial, residential and industrial real estate is on the rise.
Pakistan like other developing countries is experiencing a chronic housing shortfall. The annual demand for new homes is estimated to be around 700,000 units a year. Less than half of this demand is met every year while the deficit gets added to the existing shortfall which is estimated to be in excess of 2 Million units currently.
In the past five years, average house prices in Pakistan have more than doubled. This exponential rise is due to the excess demand and low supply which is also an opportunity for Real Estate Developers, marketing companies, Real estate investors and end users alike to invest in the Real Estate sector of Pakistan and earn handsome returns. A substantial portion of the foreign remittances that Pakistan receives are invested in the real estate sector by non-resident Pakistanis. Therefore an international expo promoting the real estate sector of Pakistan will facilitate overseas Pakistanis, help direct their investments back home and also promote the positive and professional image of Pakistan as a safe country to invest.