Housing trends in Pakistan

 2020 was not an ideal year for real estate, as we all know the market was down because of the pandemic and the government launched the construction relief package to help boost the real estate economy. But in 2021, investing in real estate in Pakistan seems more like a good time than last year. So hopefully our government give value to construction projects in Pakistan. 

Though inflation rate is usually high in major cities like Lahore, Islamabad and Karachi, the most common types of real estate investment here is buying plots and reselling at higher prices later. Current price for Houses in Pakistan are PKR 12,917 per square feet. The people who used to invest in stock markets are moving towards property investments due to the fluctuations in profit and loss. In a recent studies it has been showed that the best residential societies in Pakistan are located in the cities like Karachi, Lahore etc. They are :

Bahria town Lahore, Bahria Town Karachi, New metro city and Gawadar Golf City. One of the easiest ways to make money is to renting out your property, renting out a portion, or investing in the commercial properties. Investing in marriage halls are also a new way of property investments in Pakistan. According to world Bank, Pakistan's real estate assets are between 70 - 75 percent, worth $300 and $400 billion and housing sector of Pakistan is contributing a lot to it's Economic development. If you want to be a property dealer in Pakistan, good news is you don't need a license here because there's no authorities issuing a certificate or anything like that. The population of Pakistan is increasing at a great rate. Pakistan needs 10 million more houses, an average Pakistani who's salary is between 10,000 to 25,000 cannot afford to buy a house\apartment or any kind of shelter and the major cause is poverty. Prime minister introduced a solution and started a scheme called Naya Pakistan Housing and development authority NAPHDA, A project in which 5 million affordable houses will be built with the help of private investors.

Investing in farm houses is another way of housing trends currently around the country, renting out for vacations or buying and living there just to avoid the urban unhealthy lifestyle. Farm houses are usually located in rural areas and surrounded by greenery, which helps provide a better climate and a healthier lifestyle for humans. It has lately became a new trend to invest in suburban areas more, as wealthier families often choose to live in secluded suburban towns. "If you buy today one acre which is 8 kanals, I can assure you that in a period of one decade, particular land will be multiplied ten times". Says Maj. Retd. Shaheen, the senior consultant at imlaak.com.

Investing in commercial properties can be a great choice, but it all depends on the area you choose and the current economy of your city, etc. You can gain a lot of profit by investing in shopping malls, office buildings and warehouses etc. Commercial properties are higher than residential properties in rental returns of your purchase price. But it takes a little bit of your time and patience as it is known to be a much more longer process of documentations and then choosing the right tenants. First, educate yourself on commercial real estate. You need to decide what you want to do and focus on that. The most you will ever learn about commercial real estate is actually during and after you have done a deal. There are so many ways you can go about on educating yourself on commercial real estate like joining online real estate investing groups and have conversations with other investors. There are five primary types of commercial real estate that you can invest in:

Multifamily

From only two units to hundreds of units apartment complex.

Office space

Like office buildings etc.

Retail

It can be anything between a small shop to a major shopping centre.

Industrial

They are made up of warehouses and distribution centres.

Hospitality

Are five star or below five star hotels or motels. They are also used for short term rentals.

Overall right now the economically global situation is sort of weak. Although Pakistan has always been a beneficiary of global crisis but saying that it is the best year for investing in real estate would be false.