Real Estate Trends In Pakistan- A Profit Oriented Industry

Real-estate industry of Pakistan is important contributor to its economy. Annual spending on construction projects by Pakistani people amount to $5.2 billion. Considering contribution of construction projects to GDP, we see it at 2% of overall GDP. A marvelous growth has been observed in the real estate industry of Pakistan during last few years. A positive trend is seen over years followed by price increase during last 2 years. During 2015, real estate investment in the residential property showed increased percentage of 5% to 7%. Not only national but also international real estate is affected by wise steps by Pakistani investors and we see Pakistan as the 3rd largest real-estate investor of Dubai. If we take into account the price increase on average we see that real estate industry has great potential for not only new but also existing investors. There are varying areas and varying categories that offer investment in different terms.

Every investor looks for properties at lower cost that can be later on sold at higher prices. We see that a 15% fall is observed in properties of DHA 9th phase, 17% for DHA Islamabad and 20% for DHA Karachi. But it is an obvious fact that this fall is temporary and it will soon be replaced with a tremendous increase. The purpose of mentioning this price fall is to provide info to potential investors that this is the time for real time real investment. Price income ratio indicates housing prices to be more affordable in current situation that will soon rise. More and more people are inclined at getting luxury apartments showing an increase of 7% to 9% during last 10 years. People want to enjoy residence in well maintained and secure housing units. Prices of apartments have experienced increase of 120% during last 6 years and this trend will go on and on. Even houses experienced increase of 80%.

Previously only Karachi was a hub of apartment projects that soon spread to Islamabad and Lahore as there is an increase in cultural preferences of people. Newly constructed luxury apartments are getting popular. People are showing more interest in not only apartments but also in horizontal houses located at advanced locations. Whether you are a new investor or an existing one you can get your portion of price rise by investing now. Apart from Karachi, Islamabad and Lahore other cities like Gawadar, Gujranwala, Sakkar, Gujrat and Abbottabad etc. are a great choice for investment. Current prices will soon rise and an investment of 1 may rise to 5 or 6 in value.

Real estate has undocumented nature and is a commodity to be traded. Speculators buy bulk properties during lows which are then sold at exorbitantly increased prices later-on. Process of legality, documentation & transparency is an impressive step by government. CPEC is putting a seal over secure investment returns for real estate investors. All these factors indicate that real estate industry of Pakistan has great potential which is an opportunity that must be availed.