Real estate is Pakistan’s largest industry, contributing almost 70 percent to its economy. Despite boasting such a status, the sector is riddled with a number of problems, barring the industry from reaching its true potential.
In this blog, Graana.com sheds light on the major problems that plague the real estate industry, along with practical solutions.
Major Real Estate Problems
Just like any other sector, real estate has its own share of unique problems. Considering the colossal value that this industry holds, issues such as transparency, encroachment, fraudulent practices, and illegal housing societies are major hindsight on the government’s part.
To put up a resistance against these issues, IMARAT Group is bringing about a new era in real estate with the launch of Agency21, a project that is here to transform the country’s property sector for the better. With a #NewEra introduced by Agency21 – intelligent policy design and effective implementation are a fix to all real estate problems.
Some of the major problems that the real estate industry faces have been listed below, along with practical solutions to put an end to these hindrances.
Technology is Scarce
One of the biggest challenges that the country’s real estate industry faces is its resistance to adopting digitization. As the world moves forward and incorporates technology into its property dealings, Pakistan remains stagnant, sticking to the traditional paper dealings and long-hauled processes.
If technology were to be employed, property transactions would become seamless, with less hassle and more security. However, due to the country’s sluggish adaption to technology, the industry continues to recess back to conventional methods.
Illegal Housing Societies
With an abundance of housing societies sprouting all over the country, many illegal housing schemes have also sneaked in, turning many investors and buyers into victims of fraudulent practices. Obtaining a NOC is the first step toward legalising any housing society, and a society that is operating without having one is illegal.
As many remain unaware of this fact, millions of rupees have been lost by investors. To ensure that you do not fall victim to these schemes, it is essential that you research the housing society thoroughly beforehand, and ensure that it has a NOC from the concerned authorities.
A shortfall in Residential Units
With a booming population, the demand for housing continues to soar by the day, and it is expected to double in the coming decades. Considering these trends, the country falls short of being able to provide enough residential units to buyers. With such scarcity of housing units, real estate prices have sky-rocketed, especially in popular localities and housing societies.
The issue can be resolved by introducing subsidized housing schemes for people belonging to lower- and middle-income classes, as these groups have the lowest share of homeownership in the country.
Understanding the major problems in this massive industry is essential for those that wish to step into this business. Several solutions are available to help reduce the effects of these problems; however, the implementations of these solutions are yet to take place. With the #NewEra of real estate initiating, there may be some hope for this affluent industry.