Real Estate in Pakistan- How to Invest In 2022

March 15, 2022

Pakistan is a developing country and has been so for the past 70 years. The growth of its economy is directly proportional to the development in real estate sector, which was started by our forefathers with an intention that people should have their own homes. The housing industry in Pakistan, however, has never received the attention it deserves from investors because of its inherent risks associated with real estate market. Despite this major setback, the sector has seen a phenomenal growth over the last few decades due to political stability, better infrastructure and availability of land at very low price as compared to other Asian countries.  

According to the report compiled by UN-Habitat, Pakistan ranked among the top five countries having the highest population growth rate. This demographic shift has led to higher demand for residential properties in the country and will continue to drive the growth of real estate market. However, the government should focus on making the sector more investor friendly by bringing down the rates and taxes while making sure that the security and quality of construction are improved. The government should also ensure proper implementation of rules and regulations to protect the interests of consumers and make the real estate industry more transparent. 

The report further mentions that there is a huge opportunity in the real estate sector as almost half of the urban population lives in slums and settlements, which can be easily transformed into affordable housing projects. Due to lack of access to finance, around 80% of the population cannot afford to buy or rent decent houses. Hence, the government needs to come up with innovative financing models like public-private partnerships and bring down the interest rates so that the common man can afford his own home. 

Here’s How You Can Invest In Pakistani Real Estate in 2022 

  1. Owning A Home Is No More Out Of Your Reach

A number of new age developers have entered the market to cater to the growing demand for residential properties. They provide you with different options such as purchase, renting and leasing of new apartments. These modern-day homes are equipped with all basic amenities such as toilets, bathrooms, kitchens and balconies. 

  1. Renting An Apartment For Business Purposes Is Also Becoming Popular

Not only do these apartments offer you with the comfort of owning your own house but they also have commercial spaces available for rent. Modern-day office spaces are provided with advanced facilities like high speed elevators, temperature control systems, fire safety measures etc. They are available at very reasonable prices and serve the purpose of both commercial and residential purposes. 

  1. Commercial Spaces Are Expected To See An Increase In Demand

With the growing number of start-ups and small enterprises in the country, the demand for commercial spaces is expected to rise rapidly. As per the report compiled by UN-Habitat, Pakistan is expected to see a growth rate of 3.4% in next five years. With the increase in demand for commercial spaces, it becomes imperative to build modern offices so that they can attract highly skilled employees. 

How To Do Real Estate Investment In Pakistan? 

There are many ways through which you can invest in Pakistani real estate. The main goal of investing in property is to earn good returns and if the investment is well planned then it can help you achieve financial independence. 

  1. Property Investment Plan

This plan involves buying a home and renting it out once you retire. This is one of the safest and secure methods of making money from real estate. Many senior citizens prefer investing in property in order to ensure their monthly income. 

  1. Joint Venture With Investors

In joint venture, two or more parties join hands to invest in a project. The profits earned are shared equally between the partners. If you don’t have any money, you can also participate in joint ventures by selling your skills and expertise. You may even be asked to fund part of the project in exchange for shares. 

  1. Development of Real Estate Projects

You can develop real estate projects by getting in touch with landowners and persuading them to sell their lands. 

Final Words 

These were some of the ways through which you can make investments in Pakistani real estate. There is no guarantee that you’ll earn huge profits in real estate investment but it does have a higher rate of return than most other investment avenues. However, you must first understand how things work before jumping into anything. Keep yourself updated about the latest trends in the real estate industry and learn from successful entrepreneurs who have made millions by investing in property. 

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