Real estate investment in Pakistan
Pakistan’s real estate sector and investment in the real estate industry is securing a bright future owing to its big share in the country’s GDP, up to 70% as an estimated amount of up to 400 billion USD sum up by the world bank. This industry is profoundly correlated with the development sector comprising various industries i.e. construction industry cement industry, wood industry, steel mills, wood, marble industry, etc. so any change in Pakistan’s real state sector will affect the other industries as well, hence a prosperous real estate industry will promise a thriving development sector. The real estate investors and stakeholders are starting new projects and accomplishing the old ones within commercial and residential zones, full filling the increasing residential needs and overcoming the commercial challenges. In Pakistan, it is usually a trend of investing your savings on owning a property rather than buying gold or going for stock market shares because of the certainty of more risk factors. Moreover, people tend to secure their future by investing in the real estate sector and building houses to put them on rent and earn a reasonable monthly income. In the commercial sector, real estate investors are investing more and more to earn a sound profit by creating opportunities for people from various fields and other real estate investors. Investment in Pakistan’s real estate is being more encouraged than in any other sector due to the profits and benefits. Not only the construction is happening at a faster pace, but this sector has introduced many jobs to the Pakistani nation.
Future of Real Estate Investment in Pakistan
Pakistan is a developing country with a large population expansion, resulting in a copious increase in growth and development opportunities, hence tends to enlarge the scope of the real estate sector of the country. While Population increase is directly proportional to the demand for more residential settlements, call for more employment opportunities, and more openings of the commercial zone. Thus these are factors that are promising a bright future for the real estate industry in Pakistan. However, in the past due to some drawbacks, this sector faced a lot of problems in rising but in recent years most of the issues have been resolved due to the government’s policies giving favor to the real estate investors. The real estate investors and economists are optimistic regarding the future of the real estate industry in Pakistan after the government’s taken the initiative to relax the real estate investors.
Role of the Real Estate industry in Pakistan’s economic growth
The real estate industry of a country is one of its most important industries ensuring a stable economy of the country, the more developed the real estate industry will be, the more stable economy would be. The real estate industry in Pakistan is contributing a noteworthy amount to the country’s annual GDP, about 60% to 70% of the whole economy, roughly USD 300 to 400 billion as estimated by the world bank. Pakistan has a growing economy with a large population expansion, resulting in great demand for real estate business in Pakistan. The real estate sector in Pakistan is directly and indirectly linked to various commercial and industrial sectors like the construction industry, cement industry, plastic industry, and many more, so the ups and downs in the real estate business in Pakistan or real estate sector in Pakistan would definitely affect other linked industries too and hence the country’s economy. For a stable economy, the real estate sector in Pakistan and the real estate business in Pakistan need proper planning and law-making to cope with the issues regarding the real estate market.
Opportunities for foreign investors and overseas Pakistanis
The real estate industry in Pakistan has not only produced investment opportunities for local investors but it drove the attention of foreign and overseas investors by providing them with special favors i.e. channels to help them throughout. Due to the government’s eye on the real estate industry, special pros given to overseas Pakistanis to invest in real estate have boosted their confidence and they are more sure about the safety of their assets and certainty of profit returns. The real estate industry in Pakistan is not only reliable but it is also in a stable position now, a lot of real estate projects have been completed and many are under completion. The undergoing residential and commercial projects are driving the attention of overseas Pakistanis to invest in real estate and get quality gains. Due to continuous development in the real estate industry, more opportunities are coming by, enticing overseas Pakistan to invest in real estate and secure a bright business future in their home country.
Furthermore, different steps have been taken both by Government and society owners to facilitate overseas investors. Let’s have a look over them.
Special Blocks in Societies Specified for Overseas Pakistanis to Invest in Real Estate
The real estate industry of Pakistan is providing special protocol to overseas investors to invest in real estate. The commercial and residential societies are developing specific blocks for the overseas Pakistanis to invest in real estate with the accessibility of the comforts and luxury they need. These specified blocks will provide international standard accommodation, a high-class business environment, and world-class leisure activities. The provision of amenities to these blocks is set according to the requirements of overseas investors in the real estate industry, and due to the increasing trend and increasing demands of overseas blocks the ratio of profit is also high, and these blocks are preferred to be developed first in order to get the quality results. The real estate industry in Pakistan is also providing special relief to the overseas Pakistanis to invest in Pakistan and add worth to the country’s economy.
Digitization in Real Estate Industry
The real estate industry is going through a digital revolution and the concept of a global village can be truly determined in the real estate sector. There are various platforms that provide digital information about different projects to overseas Pakistanis to invest in real estate with the most demanding societies. One such forum is POREF Pakistan overseas real estate forum, that is connecting overseas real estate investors with the Pakistani stakeholders to create a healthy collaboration that will result in significant development in the real estate industry. (https://poref.com.pk/)
Investment Facilitation Center for Overseas Pakistanis to Invest in Real Estate
To facilitate overseas Pakistanis to invest in Pakistan an investments and facilitation center has been established at OPF, Head office Islamabad. (https://www.opf.org.pk/wp-content/uploads/2019/05/investment.pdf). The IFC is assigned to respond to all questions and issues related to the real estate industry, regulatory frameworks, and incentives that are provided to overseas Pakistanis to invest in Pakistan. The real estate industry in Pakistan is also becoming popular due to its strategic and geographical location and international projects like the china economic corridor (CPEC) are adding to its value.
Roshan Digital Accounts to Aid the Overseas Investors
Roshan Digital Account is a major initiative of the government of Pakistan through the State Bank of Pakistan (SBP) and other commercial banks working in Pakistan. These accounts will provide all banking facilities for millions of overseas Pakistanis to invest in real estate by undertaking banking payments online and carrying investment activities online in the real estate industry in Pakistan. The account opening is completely digital and the process will be completely online without any need to visit the bank branch. The process will take 48 hours to open an account. The Roshan Digital Account will fully integrate the Pakistani diaspora with Pakistan’s banking and payment system by;
- Providing digital access to all conventional account services including funds transfer, bills, fee payments, and e-commerce.
- Enabling investment in Naya Pakistan Certificates (NPCs) being issued very soon by the Government of Pakistan at very attractive risk-free rates.
- Enabling investment in Pakistan’s stock market.
- Opening up investment opportunities in the Pakistani property market very soon, including both commercial and residential real estate.
Hence all these features are promising a bright investment career for overseas Pakistanis to invest in real estate and get valuable assets in the real estate industry of Pakistan.