The real Estate Market is one of the most lucrative sectors in Pakistan. It is second in Pakistan’s largest employment sector after agriculture.
This is one of the most lucrative investments because of multiple reasons. The first one is that investors can earn a substantial return on their investment, whether short-term or longer-term.
Pakistan’s real estate sector also contributes significantly in terms of GDP. The increased interest from foreign and domestic investors in the real estate sector has boosted property prices in recent years. They are eager to acquire the best developments.
Despite Pakistan’s rapid growth in the real estate sector, there are still many challenges. These issues could cause unexpected problems in establishing and developing real estate businesses. Real estate investors need to address specific issues.
Emporium Properties is Pakistan’s Smartest Property Portal. It has highlighted important issues in real estate in Pakistan to help you understand the market dynamics.
Real Estate Market in Pakistan: Issues
The real estate market in Pakistan faces many challenges but also offers numerous opportunities. Below are four significant issues that affect Pakistan’s Real estate market.
- Planning is not enough
- Inadequate regulation
- Access to information is difficult
- Malpractice
Planning is not enough.
The biggest problem in Pakistan’s real estate market is the lack of planning. The country’s population is increasing at an alarming rate, but most people still don’t have basic housing facilities. This sector will likely proliferate in the coming years, leading to a significant real estate market crisis. These issues can be solved by proper planning.
Inadequate Regulation
Lack of regulation is the second most challenging problem in Pakistan’s real estate market. Despite being one of the most important commercial sectors in Pakistan’s economy, the regulator that oversees it is still lacking.
To reduce environmental impact, regulations are essential. They can also end up increasing the cost of real estate development projects. Many areas need immediate attention from the authorities regarding policy formulation, regulation, and implementation.
Inaccessible information
When it comes to assessing real estate investment prospects, Pakistanis rely on verbal knowledge. People would instead save money than invest in property because they consider it more lucrative. Lack of information is one of the most common problems in real estate.
Looking back over the years, we see that there was not one source of information at that time. Technological advances have dramatically improved the system. Propsure is one such company. It provides information about real estate issues such as:
- Verification of land
- Online digital maps
- Forecasting Property
- Inspection of property
Malpractice
People in Pakistan are easy victims of fraud in the real estate market. To rob others of their hard-earned cash, people sell assets that are not there or take over. Malpractices account for 40% of real estate capital in Pakistan. Before investing in Pakistan’s real estate sector, it is crucial to research.
The potential for real estate to revive and boost the economy is vast. A well-structured, centralized government system can overcome these problems.
