Real estate is one of the most profitable sectors in Pakistan. After agriculture, it is the second-largest employment sector in Pakistan.
It is one of the most lucrative investments for multiple reasons, with the foremost one being that investors are able to earn a significant amount of return on their investment whether it’s in the short-term or long-term.
The real estate sector of Pakistan also contributes significantly to the nation’s GDP. Property prices have risen in recent years as a result of increased interest in the real estate market from both domestic and foreign investors eager to get their hands on the most recent and outstanding developments.
Even though Pakistan’s real estate sector has expanded dramatically, it still faces multiple overarching challenges. Almost all of the industry’s most important players may suffer as a result of these issues, causing unexpected problems in the development and establishment of real estate industries. There are real estate challenges that investors must address.
Granna.com, Pakistan Smartest Property Portal, has highlighted some important issues of real estate in Pakistan to understand the real estate market’s dynamics.
Issues in Pakistan’s Real Estate Market
Pakistan’s real estate market faces numerous challenges while also providing numerous opportunities. Mentioned below are four overarching issues in Pakistan’s Real Estate market
Lack of Planning
Lack of planning is the most serious problem in the real estate market of Pakistan. As the population of the country is growing at a significant pace, most citizens still lack the basic facility of housing.
There is a high chance that this sector will grow rapidly in the upcoming years which can cause a serious crisis in the real estate market. There is a need for proper planning in order to resolve these kinds of issues.
Lack of Regulation
The 2nd most challenging issue in the real estate market in Pakistan is the lack of regulation. Although the real estate sector is one of the largest commercial sectors in Pakistan, it still lacks the regulatory body to look after it.
Regulations are important to reduce the environmental impact and end up costing real estate development projects. Hence, many areas require the authorities’ immediate attention in terms of policy formulation, implementation, and regulation.
Lack of access to information
In Pakistan, people depend on verbal knowledge when it comes to assessing the growth of real estate investment prospects. People prefer to save money instead of investing in property by considering it more profitable. One of the common issues in the country’s real estate is a lack of access to information.
When we look back through the years, there was no source for locating information at the time. However, technological advancements have significantly improved the system. One such example is Propsure, a company that provides information regarding real estate problems such as :
- Land verification
- Online digital maps
- Property Forecasting
- Property inspection
In Pakistan, people easily become victims of fraudulent practices in the real estate market. People sell non-existent or encroached to rob others of their hard-earned money. In Pakistan, 40 percent of the real estate capital gets stuck due to malpractices. It is important to do research before investing in the real estate sector of Pakistan.
To sum up, Real estate has huge potential to revitalize and boost the country’s economy. To overcome these problems, the government needs a well-structured centralized system in place.