The Impact of Medical Facilities on Property Prices in Pakistan

Medical facilities are one of the major factors affecting property prices. The cost of living is increasing day by day and so does the price of real estate. In this regard, medical facilities play a very important role as it has an impact on the health of people and thus affects their lives. According to World Health Organization (WHO), there are about 1.5 million deaths due to infectious diseases every year which is around 3% of total global mortality rate. The same statistics shows that almost 10% of all mortalities occur because of non-communicable diseases such as cancer, cardiovascular diseases, diabetes etc. This means that more than 50% of the world’s population dies because of these illnesses. 

Pakistan is one of the most affected countries by non-communicable diseases. It has high rates of cardiovascular disease, diabetes and obesity, among other chronic conditions. According to WHO, around 25% of Pakistani adults suffer from some form of heart problem and 5% have diabetes. The number of patients suffering from chronic diseases is increasing rapidly with time. This leads to a rise in the demand for medical services which results in increased need for hospitalization. 

Medical tourism is becoming popular among people who want to visit hospitals abroad to get treatment at affordable costs. Many people from developed nations travel to Pakistan to avail medical treatments that they cannot afford to buy locally. Moreover, many people from developing countries also come to Pakistan to avail cheap medical treatments. 

In order to attract foreign tourists, the government of Pakistan has made several investments in the country’s medical sector. For instance, in 2015, the Government of Punjab launched its new policy named ‘Punjab Medical Tourism Initiative’ under which the province will invest over Rs. 1 billion annually in promoting medical tourism in the country. The initiative aims to create a platform for attracting foreign tourists to Pakistan through medical tourism. The provincial government has allocated funds for setting up two international standard hospitals in Lahore and Karachi. The new hospitals will be built on land belonging to the Ministry of Defence. The government has also planned to set up another hospital in Peshawar within the next few years. 

The Punjab Medical Tourism Initiative has been designed to attract both local and foreign tourists. The plan includes development of hospitals, training of doctors and nurses, establishment of hotels, etc. It is expected that this initiative would generate revenue worth Rs. 8 billion annually for the provincial government. 

How Does This Affect Property Prices:

As per the above discussion, it can be concluded that the provision of medical facilities has a direct effect on the demand for residential properties. This has an impact on property prices in the region where medical facilities are available. As more people become aware of the availability of quality medical facilities in Pakistan, the demand for housing units increases. This results in an increase in property prices. 

There is a strong correlation between the number of hospitals and the demand for property in a particular area. The demand for residential properties rises as more hospitals are established in the locality. Therefore, the price of houses in a locality where hospitals are located goes up compared to those areas where no hospitals are present. 

For example, if we look at the city of Islamabad, the demand for residential properties is comparatively lower compared to other cities of Pakistan. This is because the city has only three hospitals and all of them are privately owned. However, the price of houses in Islamabad is much higher than that of other cities. This is because the demand for housing units in Islamabad is low compared to other cities. If more hospitals were to be established in Islamabad, the demand for housing units would go up along with an increase in the price of properties. 

This phenomenon is visible in the case of Karachi as well. The demand for housing units is relatively low compared to other cities of Pakistan. However, the price of properties in Karachi is very high. This is because the demand for residential properties in Karachi is high. In fact, the demand for residential properties in Karachi is highest amongst all the cities of Pakistan. If more hospitals were to be established in Karachi, the demand for housing units would go up. This would result in a further increase in the price of properties in the city. 

The demand for residential properties in Lahore is also high compared to other cities. This is because of the presence of numerous educational institutions and hospitals in the city. The demand for residential properties in Lahore is also influenced by the high demand for apartments in the city. The price of properties in Lahore is comparatively lower than other cities of Pakistan. This is because the demand for residential properties in Lahore is comparatively higher than other cities. 

Conclusion 

The provision of medical facilities has a direct impact on the demand for residential properties. This has a significant effect on the price of properties in the area. The demand for residential properties is directly proportional to the number of hospitals in the locality. Therefore, the price of properties in an area with a large number of hospitals is comparatively higher than those areas where there are fewer hospitals.