Pakistan’s Real Estate Can Reach $2.11 Trillion

The Pakistan real estate market is experiencing rapid growth.

In 2024, it is expected to hit $1.49 trillion. That’s a considerable number. It shows strong demand for homes. This growth helps the economy. It also supports cities and the construction of new roads.

If things go well, the market could reach $2.11 trillion by 2028. That means great estate investment opportunities for both local and foreign investors.

What Can Help the Market Grow?

Experts say the government must act. First, they should give property tax breaks. Next, make rules easier. Also, support low-cost housing.

But that’s not all. Large projects require good roads and reliable services. So, building infrastructure matters too.

In addition, public-private partnerships can drive new investments. These can boost the estate sector and create more opportunities across cities like Karachi, Islamabad, and Lahore.

More Considerable Changes Are Needed

However, experts also discuss more significant issues. They say:

• Cut interest rates.
• Make the political system stable.
• Fix outdated tax rules.

These steps can help the whole economy. A stable environment will attract more property investment.

Ireland is one country that did it well. Pakistan can learn from that.

As one expert said, “To sell something, people need money to buy it.” That’s why budget 2025 decisions will be crucial.

Residential Real Estate Is Leading the Way

Right now, residential real estate is leading the boom. This part of the market is already worth $1.49 trillion.

But it’s not stopping there. It is expected to grow at a rate of 7.04% per year. By 2028, it is projected to reach $2.77 trillion. That’s significant growth for the estate industry.

The Need for Affordable Housing

There’s a big problem. Pakistan needs 10 million homes. However, there is a gap of 4.5 million units.

This shortage pushes up prices. Many people rent instead of buying. Developers often avoid building affordable housing because the profits are low.

Why? Land costs are high. So are construction costs. And the rules are complex.

Housing Is More Than Just Homes

Affordable housing is a social need. It helps families live better. It also creates peace and order.

Investors should understand the real estate forecast and the latest trends. Knowing the market enables them to make informed choices.

One expert, Shamsheer Ali Turk, said the market has enormous potential. He advises:

• Do research.
• Invest in cheap housing.
• Build bright and green.
• Make strong partnerships.

However, ICONS also noted that builders often overlook the need for affordable housing. That’s because they cost more and pay less.

Why Prices Went Up After 2005

Following the 2005 stock market crash, many people invested in real estate. Prices for homes and shops doubled. This made it more difficult for many to make a purchase.

The shift increased demand and created long-term value in the property investment space.

What Investors Think

ICONS Team, a real estate expert, says investors look at risk. Some prefer banks, where they can earn returns of 15-16% with minimal risk.

The State Bank of Pakistan (SBP) has lowered interest rates. That’s good news. But it’s not enough.

Foreign investors still worry. Political risk and a weak rupee scare them.

ICONS Team says interest rates matter most for local investors. When they drop, the property market in Pakistan is expected to rise.

The Quality Problem in Affordable Housing

Our real estate experts also talked about housing quality. Cheap homes often lack good materials. He said, “Affordable and quality don’t mix well these days.”

Still, it’s not just about lower prices. It’s about giving value. People need money to buy homes. Policies must help with that.

Real estate agents also say that buyers today are more informed. They want better value for money, even in budget housing.

Final Thoughts

The Pakistan real estate sector has enormous potential. But to unlock it, the government must act fast. Support for affordable homes, lower interest rates, and stable politics can make the dream a reality.

All eyes are now on the 2025 budget. If key reforms are introduced, real estate investment opportunities will grow. The future of the estate industry depends on smart moves today.