The real estate market in Pakistan is growing rapidly. The government is paying attention to the sector and has made tax breaks available for investors. With the improving economic situation and successful expansion of the CPEC, the sector is expected to become the fastest growing industry in the country by 2021. Here are some trends to keep in mind as you consider investing in real estate in Pakistan.
Modern-day villas
For those looking for modern-day living spaces, Pakistan offers a wide range of modern villas. These villas are small in size, but offer a high-end living environment. These homes are also considered to be more secure than a regular home. Most of them are priced between Rs 38 million and Rs 65 million.
Pakistan has a booming real estate industry like kingdom valley islamabad. With a housing backlog of almost 12 million units, the country has seen a significant increase in construction activity over the past few years. In addition, the country’s second-tier cities are joining the high-rise luxury living bandwagon. However, despite these developments, the real estate market in Pakistan still has a large demand-supply gap. While 68% of Pakistan’s population earns a monthly income of less than Rs 30,000, most of the current housing development is aimed at individuals earning Rs 100,000.
Another major trend in the real estate market in Pakistan is the emergence of gated housing communities. According to industry experts, investments in such communities increased between fifteen and twenty percent in the past two years. These communities are characterized by their high security and privacy, and they have gained considerable popularity in Lahore, Islamabad, and Faisalabad. Prices range from Rs 2.8 million in the suburbs to more than Rs 33 million in the city center.
Hotel apartments
The increasing demand for hotel apartments in Pakistan has led many investors to turn their attention towards the development of such projects. The latest high-rise projects offer world-class living amenities, including power backup, spacious parking, CCTV cameras and high-speed elevators. All these facilities and more ensure a comfortable and luxurious lifestyle for the residents.
These apartment buildings offer the perfect balance between traditional hotels and residential apartments. They are now one of the most popular modes of accommodation for business executives and tourists. They also attract the attention of domestic and foreign investors. The Avenue, for example, is a mix-use development in Lahore, and features the city’s first four-star hotel. It also offers a food court, gym and rooftop swimming pool, among other amenities.
Hotel apartments in Pakistan are an excellent option for overseas investors. These properties are safe investments and the management teams are highly qualified. The hotel apartment is managed by a dedicated management team, so there is no need for overseas investors to worry about the maintenance of the premises or tenants. Moreover, the rental amount is transferred to the owner’s account regularly.
High-rise buildings
With the rising population in Pakistan, the real estate industry has been undergoing a shift from plots to high-rise buildings. The number of residential towers has increased dramatically in the metropolises, and many high-rise developments are now offering state-of-the-art amenities. The demand for high-rise apartments is growing exponentially. Many people prefer to live in close proximity to city centers, which reduces their living expenses and travel time. They also have better access to municipal services.
The growth in high-rise buildings has attracted real estate investors in Pakistan. In the past few years, Pakistani real estate has become one of the largest sectors in the country. The growth in this sector has stimulated growth across over 100 different industries. As a result, it is one of the most preferred investments for international investors. However, this boom has brought along a variety of problems, such as a lack of affordable housing and fragmentation of regulatory frameworks.
Mixed-use communities
Residential and commercial properties are merging into mixed-use communities in Pakistan. The trend in residential property is primarily driven by the increasing need for luxury apartment properties. The increasing number of buyers looking for a comfortable, secure and well-maintained home is driving this trend. Since the last decade, the prices of both houses and apartments in Pakistan have increased dramatically. Between 2010 and 2016, the prices of house and apartment properties increased by 120% and 80% respectively. invest in blue world city
The second-largest city in Pakistan, Lahore, is the center of mixed-use development in Pakistan. Numerous mixed-use structures, such as The Magnus Mall and the Twin City Towers, are being developed in the city. Another growing trend in the country is the construction of hotel apartments. Similar to serviced apartments in major U.S. cities, hotel apartments in Pakistan will offer tenants the ability to live in a variety of properties.
Housing shortage
Pakistan’s housing shortage is becoming a pressing problem due to an influx of people. The country’s overall population is growing at an average rate of 2.4 percent a year, but the urban population is growing even faster. By 2040, more than half of Pakistan’s population is expected to live in urban areas. This rapid growth has resulted in a housing shortage of close to 10 million units. This shortage is affecting 62 per cent of the population, most of whom are from lower-income groups. Each year, over 3.5 million units of housing are needed in the urban areas of the country.
This shortage is predicted to become worse by 2021. This housing shortage is caused by a mismatch between supply and demand. If the supply of new houses exceeds demand, the real estate market is considered stable. If the number of new houses constructed within four or six months is greater than the number of new housing projects, the market is stable. However, if the supply of housing units is less than demand, the market turns into a seller’s market.
