There come many challenges when a state is at the developing stage because all the sectors and institutions are on the verge of risks and inclination that leads to prosperity but surely first the risk factors are faced. As Pakistan is a developing nation that is on the road to innovation with strong pace; therefore our institutions and sectors also face different threats, problems and challenges that should be catered with same pace and strength so as to avoid consistent tribulations or lacking for a healthy fortune.
Our industrialization has benefited the society economically that has empowered the real estate sector also with many other divisions also because with the floating money, investors are now more in the market if compared previously. However, the challenges of real estate have aroused by different external and internal factors.
Some of the stated factors are categorised under two separate sections that are detailed as following:
Risks and Challenges:
As Pakistan is struggling in current times, so does each individual at the present where it does not become easy for many to invest or stuck up their monetary strengths in certain projects where real estate projects are of high values in recent times because of many internal and external factors.
Secondly, when investors find out the uncertain economic conditions prevailing in the state; they fear in investing and putting their money on hold with doubts therefore instead of putting their money on stake; they often pull out the already invested money, leaving behind financial losses for the market.
As the nation is on the road to development; this fact itself is found really risky and uncertain for the investor. Factors such as political instability, geological state and social factors also contribute to the volatility of real estate market.
This feature always leads to difficult situation for any niche. There are times when governments implement taxes and liabilities on investors that lead to languished growth in real estate sector. On the contrary, the prices of all raw materials are also exceeding leading to the high monetary value of final product that limits the buying power of the investor.
Like many other sectors, real estate market also lacks organized processing and delivery because few professionals and companies understand the ins and outs of the real estate industry. People in this sector claim that they know the adequate knowledge and ability to tackle real estate processes but unfortunately this is not the case in reality and people have entered the field just because they have not found appropriate jobs elsewhere that has lead to trust issues between the investor and dealer. Inadequately informed dealers and companies have ripped off people’s money leaving them with huge financial losses just for the sake of their small profits. There are also many scam and fraud schemes spread around in the market that bring doubts to the investors.
Misinformation about real estate sector:
Many Pakistanis believe that real estate sector offer usually ill-legal and un-religious offers that keep them in doubts to invest with full confidence.
There has always been gap between supply and demand in the inventory of real estate; potential clients often trial off. Sometimes, the active listings drop in some areas and the potential buyers increase but the demand do not meet up the required status and vice versa.
As all the sectors are digitizing with the intervention on technology; many real estate companies have also shifted their focus to digital media, online portals, and websites. But in a country like Pakistan, there still is a little understanding to the technological advancements and people are not literate enough to get flexible with the cloud based information. To compete the global trends people in Pakistan still need increased tech literacy for which government and media should encourage the general public in this aspect.
Devaluation of money:
The devaluation of money and inflation is rapidly rising, typically disadvantaging all the sectors of society. It has now become very challenging to get hands on a reasonable amount of area or land or property what so ever in a reasonable amount of money due to hyperinflation. Values have increased where as quantity has decreased by great difference. This has limited the purchasing power of everyone through out the globe and more precisely in developing countries.
The ongoing pandemic has contributed significantly affecting all the institutions of a society as a whole and as people have lost monetarily a lot that has lead to low investment rate in the country and globally also.
Slow sales process:
The slow pace of any process with flawed processing makes it worth less and boredom bringing doubts to the investors that leads to substantial financial losses.
In spite of all the previously stated issues, still sometimes market speed up with strong competition by leaps and bounds. This growth in the competition has always led to increase the cost of conducting operations like that of lead generation and marketing.
Frauds and Scams:
This has been practiced sometimes that companies fake their projects with unnecessary features that are not there in the reality leading to deprivation of money and hit trusts in the negative ways. Such wrong spread of mouth has generated losses and credibility of the sector and real estate projects.
All the above mentioned problems, doubts and challenges if catered sensibly and reforms be made by the concerns on local, provincial and federal levels, this industry can bring immense positivity, boom and prosperity to the country. If the state implements reforms, real estate will grow and thrive throughout the country.
Furthermore, if reforms are applied to the institution; this will lead to ensured prosperity for Pakistan.