by ZeeShan Kahloon 
Land has a significant impact on how society develops. People are more inclined to participate in their communities socially and economically if they have access to suitable housing.
With the emergence of new-age groups, buyer-agent relationships, and new technology, the real estate market in Pakistan’s capital, Islamabad, is rapidly changing.
Pakistan is one of the best places to invest in the future when it comes to real estate.
In order to better understand the sector, we will examine the Pakistan real estate prediction for the ensuing coming years in this post.
Predictions For the Future of Housing in Pakistan
The future of housing in Pakistan is an increasingly important topic as the country’s population grows and urbanization continues. With a current estimated population of over 200 million people, Pakistan is projected to become the world’s fourth most populous country by 2050.
As cities continue to grow and space becomes more scarce, innovative solutions will be necessary to provide affordable, sustainable housing for the country’s residents.
Increased Focus on Sustainability
Sustainability is becoming a more important consideration for builders and developers around the world, and Pakistan is no exception. As the effects of climate change become more apparent, there is an increased focus on building homes that are energy-efficient and environmentally friendly.
In the future, we can expect to see more homes in Pakistan built using sustainable materials and featuring solar panels and other renewable energy sources.
The Rise of Smart Homes
Smart homes are already becoming more popular in Pakistan, and we can expect to see this trend continue in the future. Smart homes use technology to control various aspects of the home, such as lighting, temperature, and security.
This technology can help homeowners save money on energy bills and make their homes more secure.
Modular Homes
Modular homes are built in sections in a factory and then assembled on-site. This method of construction is faster and more cost-effective than traditional construction methods.
In Pakistan, modular homes could be used to quickly and affordably provide housing to people who have been displaced by natural disasters or other crises.
3D Printed Homes
3D printing is a rapidly advancing technology that has the potential to revolutionize the construction industry.
In the future, it may be possible to 3D print entire homes using sustainable materials. This could help to provide affordable housing to people who might not otherwise be able to afford it.
Pakistan Real Estate Before COVID-19 Pandemic
According to SBP data on the money supply, M2 significantly increased between 1980 and 2020. The broad-based money supply M2 in the monetary data has increased significantly. Surprisingly, the increase in the money supply in 2020 exceeds what is statistically comprehensible over the previous 150 years.
While the data from the SBP shows a harsh picture of the inflation rate over a period of 40 years, Pakistan has a double-digit inflation rate of 10%, as opposed to the intended 2 to 3%. The 2009 financial crisis was still having an adverse effect on the nation’s economy.
During that time, GDP increased significantly, but it has since tripled and now seems to be trending upward. Although export services already account for the majority of Pakistan’s GDP, the trade deficit and overall public debt of the nation are still increasing.
Now, the ideal scenario for property owners is:
The real estate market in Pakistan is growing quickly. In 2023, a strong economic rebound is anticipated. Real estate analysts predict that additional investments would be made in Pakistan’s real estate sector in 2023.
The continually rising values of both commercial and residential real estate are one factor contributing to this.
Another crucial factor is the return on investment. After 4-5 years of investing, investors generated large gains. A growing number of investors are drawn to all of these considerations. As a result, it is almost guaranteed that the real estate sector will expand in 2023.
Future home construction projects are more likely to be seen as investments that will eventually be kept as highly profitable residences for sale.
When it comes to finances, real estate is one of those assets that never fails. Real estate investing can boost your financial standing. Also, it provides the family with excellent long-term security.
Residential Real Estate Purchases Are Not a Priority
Even though many Pakistanis living in Pakistan and abroad invest in the real estate market, there will be fewer people purchasing homes. This is so because savings are typically used to buy residential real estate.
But because of the COVID-19 pandemic and the ensuing inflation, many individuals have lost their employment and are now relying on their savings to get by. Between the pre-lockdown and the first wave lockdown periods, the unemployment rate rose by 34.1%, while the mean income decreased by more than 42%.
The majority of people are still primarily concerned with making up for the money lost during the lockdown even as things return to normal and more people are getting jobs, so purchasing real estate may not be a top priority for a while. The secondhand market will experience a decline for the same reason.
Growth Aspects
The fastest-growing industry in Pakistan is real estate. For local and international investors searching for a safe choice with decent returns, it is a worthwhile investment opportunity.
Mega projects have also created a healthy competition in Pakistan to create distinctive buildings and skyscraper structural designs that offer fantastic amenities for patrons to live a western lifestyle in the area.
Investors from around the world will want to come for their business and tourism needs if this healthy rivalry persists in the nation.
The Real Estate Industry Will Grow
Three important factors—scarcity, utility, and demand—will cause the Pakistani real estate market to appreciate.
- With a current housing backlog of 10.3 million homes, the nation is experiencing a shortage of residential property.
- Utility: Due to the rise of hybrid and work-from-home cultures, homes have recently become attractive venues to do business.
- Demand: As 64 percent of Pakistan’s population is under 30, there is a high demand for housing as a result of people yearning for independent homes to live in with their families. Also, more housing must be built to accommodate the growing population.
Increasing Family House Prices and Demand
Due to Pakistan’s strong emphasis on the family, multi-family homes are in higher demand than single-family dwellings.
Three or more adults are present in more than 60% of domestic units. As a result, more multi-family homes would be preferred by buyers, vacancies would decrease, and prices would rise due to a lack of supply.
Pakistan Real Estate Forecast for Upcoming Years
From 2023 to 2025, the Pakistani industrial sector is anticipated to develop by 5.1% annually.
Pakistan’s real estate market is anticipated to expand 5.3% in 2023 after expanding 7.1% in 2020, which is a better trend than the previous projection of 3% growth, according to Researchandmarket.com.
According to the published data, rising industrial production and real estate investment projects are to blame for the industry’s expansion. The federal and provincial governments have approved development projects worth 1 trillion rupees ($6.1 billion) through July 2022.
With investment support from the Capital Authority and the Lahore Development Authority, the gross public fixed capital formation (GFCF) increased by 18% in fiscal year (FY) 2021. (July 2020 to June 2021). Due to increased activity by the Pakistan Civil Aviation Authority, National Roads Authority, Port Qasim Authority, and National Logistics Cell, total GFCF saw a 13.8% increase in FY2021 (NLC).
Let’s talk about some facts
The government amnesty plan subsidies were also praised in the report for their beneficial effects on the economy, which led to an 84% increase in house and construction finance in FY2021.
Also, the government’s allocation of Rs34.6 billion (US$212.7 million) for the housing and creation sector, out of the Rs8.48 trillion (US$52.1 billion) contained inside the Federal Budget for FY2021-2022, is expected to have a positive impact on the business.
Between 2022 and 2025, infrastructure developments along the China-Pakistan Economic Corridor (CPEC) are anticipated to accelerate the industry’s growth rate by 5.1% annually.
The economy is supported by growth in addition to construction operations in the areas of transportation, electricity, housing, telecommunications, and manufacturing.
The government intends to construct ten mega-projects in the hydro and hydroelectric power industry between 2023 and 2028-2029 to raise the proportion of hydro and hydroelectric power in the National Grid.
Special economic zones are also created by the government to promote industrialization. In order to address the housing deficit, the government also plans to construct five million dwellings between 2019 and 2024.
Wrap Up
The future of housing in Pakistan will be shaped by a variety of factors, including population growth, urbanization, and technological advancements.
However, by focusing on sustainability, smart homes, modular homes, and 3D printed homes, builders and developers can help to create a future in which everyone has access to safe, affordable housing.
