Real estate in Pakistan has emerged as a flourishing sector. Every other individual has or intends to own real estate pakistan. It is growing rapidly in Pakistan, and people tend to invest in the real estate sector as it is a fruitful and profitable investment. And with the development of magnificent residential complex real estate industry of Pakistan is reaching skyward. But with such rapid growth, there is always room for improvement. Investing in real estate is profitable but risky too. Why? Because of many loopholes. So, brace up because we’re about to talk about real estate concerns in Pakistan.
What are the Problems in Real Estate Pakistan?
The foremost problem is security. Although the real estate sector is expanding rapidly, investing in the real estate industry is also risky. It is because of most people’s negative perception that directly affects security. But we can’t simply blame the security as many more problems face real estate investors in Pakistan.
Real estate is not amenable in Pakistan. The appropriate legal protection is not offered to the investors. Along with these issues, enhancement in the influential rates, unskilled managers, scams, rise in the interest rates, and greed are factors that affect the growth of real estate in Pakistan. Enlisted below are some other problems that hamper the growth of the real estate sector in Pakistan.
Deficiency of Housing Units:
Deficiency in the housing units is one of the supreme problems real estate sector of Pakistan face. In 2019, an analysis of the report showed the backlog of 10.3 million housing complexes in Pakistan’s rural and urban sectors. And in 2025, this number is expected to reach 17.4 million.
However, the current government is taking measures to resolve this issue and improve the growth of Pakistan as Prime Minister Imran Khan launched a Naya Pakistan Scheme. Under the umbrella of these housing schemes, especially the Naya Pakistan Scheme, the developers aim to bridge the gap between demand and supply by providing high-quality residential property at affordable rates. Furthermore, a new housing scheme Mera Pakistan Mera Ghar, is a joint venture of the federal government and State Bank of Pakistan. The housing society intends to provide housing loans at a low markup price.
Less Recognition of Technology:
We live in an era of technology. It is transforming the world. With one click, you can connect to your loved ones living overseas, and with vehicles, you can travel around the globe. But unfortunately, Real estate in Pakistan is still lacking when it comes to the use of technology. Many investors, developers, and owners are not aware of the latest technology, machinery, and equipment, so they avoid its usage. It becomes a hurdle in the way of real estate growth in Pakistan.
Lack of Real Estate Certified:
You will hardly come across a certified real estate agent or professional in Pakistan. Most people who run this real estate business in Pakistan are based on their experience or without any knowledge. The problem starts as many agents become scammers and scams to the people. Investors put their belief in them and invest their money, but this turns out to be a massive hoax.
Due to the lack of a valid certificate, investors cannot distinguish between genuine and fraudulent investors. Having an educated, certified, skilled, and talented real estate Pakistan professional makes a lot of difference. As the real estate sector is growing rapidly, there is a need for educated and certified real estate professionals to sort these problems out.
Absence of Real Estate Regulatory Authority:
There is no real estate regulatory authority in Pakistan. There is a need for real estate regulatory authority to protect the rights and provide security to both investors and stakeholders. In the absence of such a regulatory body, it is difficult to tackle all the issues and fill out loopholes related to real estate in Pakistan.
The aforementioned are some of the major problems faced by the real estate sector of Pakistan. The real estate sector must address these issues and take proper measures to ensure the proper growth of the real estate sector.