Role of Real Estate Sector in Pakistan’s Economy

Global Real Estate firms are a massive market in the world. That has made it the most revenue-generating kind of business globally. For the past few decades, people have been very inclined towards Real Estate. That is why real estate is one of the world’s most popular kinds of business.

It is very hard for anyone to survive or to exist on planet Earth without Real Estate. The real estate industry has always proved to be an excellent sector in any country’s economy. The largest example of this is the Dubai property. In this comprehensive blog, we will discuss the role of the real estate sector in Pakistan’s economy.

Role of the real estate sector in Pakistan’s economy

 The real estate industry plays an important role in any country and is considered to be a core business for every economy. In the last two decades, the real estate sector has become one of the most progressive businesses in Pakistan. The garment sectors are also Considered as the second largest source of employment in Pakistan cattle farming sector. Pakistan’s real estate and housing sector is contributing 32 billion dollars which is equal to 2 % of Pakistan’s GDP.

It is also estimated that it is directly and indirectly creating employment for millions of people since it is related to more than 200 subsidiary industries such as cement steel and glass industry timber furniture industry paint electronic industry.

The real estate business has been established as a source of earning hefty profits in Pakistan within some period whether their purpose is in real estate business as agent or investor. This sector is one of the biggest sources for remitting lots of cash from over bodies and highly helpful to the country’s economy.

The sector has a lot contributed Towards construction in Pakistan; new housing societies are being launched every other day where a good lifestyle is provided. Pakistan is one of the grouped population density countries where people face problems in constructing a house and other aspects of life The societies have the structure of folding structures for people to build and Buy homes themselves without the limitations of their financial capacity. Societies are providing all the health, education, electricity, security and other initialization needs of people.

Real estate problems in Pakistan

The real estate sector in Pakistan is also facing some problems.

We discuss some of the points below

Lack of proper regulations:

Nevertheless, the unemployment rate is rather high in Pakistan and people do not know the rules and regulations that must be followed; or, rather, they do know the rules and regulations and nevertheless, they breach them. A large population is unliterate. They noted that it is the largest gulf between demands and people’s needs, any producer who is praying to tap the market must open the ears cor and bring down the market so that they will hear the pains of the people. It means that there is an emergent need for the application of sound planning and accounting skills for transporting the real estate sector in Pakistan.

The shortfall of housing units:

We all understand that Pakistan has the fifth most populous population; that’s why the population is performing its part negatively where the provision of housing units is scarce. That’s why, from the research, the current analyzed Pakistan has been suggested to have around 10,330,024 housing shortages in both urban and rural environments while projected to increase up to 17,410,106 by 2025. The other is the fact that the population of such areas has since reduced to near obscurity status.

Pakistan is a developing country where the population can not even afford high-end accommodation. Regarding this problem, the ex-Prime Minister of Pakistan Mr Imran Khan started the layout of the project of provision of cheap and comfortable houses Naya Pakistan Housing Scheme.

Misinformation and speculation:

Unfortunately, there are a lot of myths and misconceptions regarding the real estate sector in Pakistan which creates a dysfunctional perception of the common man regarding the property market. To date, there is no genuine database on the property markets, including prices, trends, demand, supply, and inventory.

There is also a lot of emotion, and agents and developers tend to artificially increase the prices for the properties they are selling to achieve these goals. This leads to the absence of knowledge and sensitisation of the buyers and sellers through sharp practising agents and developers.

Low adoption of technology and innovation:

The current and prevailing trend of real estate business in Pakistan is significantly resistant to changes and innovations and continues to dominate the traditional techniques for commercialization, communication and general management of business. In terms of technology and innovation, the current status that can be seen and used is quite low, especially for those like; Online portals and imageries, digital platforms, mobile applications, and smart solutions in the sector.

Equally, there is a shortfall of adequate skilled and trained human capital in this field to harness and integrate the use of Technology in the improvement of the sector.

Solutions for the Real Estate Sector in Pakistan

To overcome the challenges and improve the situation of the real estate sector in Pakistan, the following solutions are suggested:

• Reducing the hardships that the developers and builders face while waiting to get the approvals and clearances for construction and development projects.
• Promulgating new survey Regulations that afford practical and precise directions regarding how a property is established, and measured, and a purchaser acquires title to a piece of land to prevent controversies regarding ownership and demarcations of the land.
• Standardizing the Real Estate brokers Agents of this country and enhance the part to eliminate corrupt and unfair practices. This can be achieved through the creation of a Real Estate Regulatory Authority (RERA) whose role would be to set standards, the regulation of the industry and enforce those standards.
• Heading the advocacy for technology and innovation use in the sector with key applications being online portals and platforms, Mobile applications, and smart solutions with regards to access, communication and management of the sector. The following strategies can be adopted: By encouraging and subsidizing the technology-makers and creators common in start-ups who are inclined to operate in this domain; and by raising the profile of and sensitizing the players to the advantages of technology.
• Facilitating the supply of credible and genuine info shares on the property market including prices, trends, demand, and stock through websites social media platforms and research publications. This can be achieved through teaming up with the government, private enterprises and civil society in gathering and processing information and data and then releasing it at the right time and in the right format.
• Informing and capacity building of The buyers, sellers, investors and agents in services that may be available in the real estate sector, the opportunities and risks that prevail in the sector, and the practices that should be followed through websites, social media, and seminars. It may be achieved by developing and providing rich content and courses; as well as by offering advice and support to the stakeholders.

Also, read How to Start a Real Estate Business in Pakistan.

If these points are followed, then the real estate sector will have a good impact on Pakistan’s economy.

Conclusion

The real estate sector of Pakistan stands high and has immense prospects and issues. It is a major factor in the country’s economy, earnings, investment, and development. But it has several issues as well: there aren’t enough houses, it isn’t regulated, people get bad information, and it doesn’t use technology much.

To eliminate these problems and improve the general conditions of the sector, the concerting actions of the government, the private sector and the civil society should be applied to the suggested solutions. Here are some of the eminent real estate companies of Pakistan that are involved in this process, Zameen, Graana, Al Safa Group, Agency 21, Estate Land Marketing, Star Marketing Sky Marketing, ZEM Builders, 92 Properties, and Square Nine.