The article discusses the challenges currently facing Pakistan’s real estate market, primarily due to inflation leading to increased construction costs, which deter potential investors.
Real Estate Market in Pakistan 2024
In Islamabad, private societies are abundant, but finding genuine buyers is difficult due to economic uncertainty, despite installment plans being offered in new developments like Airport Green Garden and Faisal Hills.
Even in desirable areas like the Bani Gala, discounted plots and installment options are struggling to attract buyers amidst the economic crisis.
Major Impact on the Real Estate Sector
Previously, real estate investment was popular in Pakistan, but economic weakness and rising taxes have made it less attractive. The depreciation of the Pakistani rupee against the US dollar, influenced by IMF terms accepted by the previous government, has further impacted commodity prices, including in the real estate and automotive sectors.
Although Pakistan offers separate blocks within private societies for overseas investors, many expatriates prefer to invest in these rather than local properties.
The burden of the government’s loan interest obligations is expected to be passed onto the public, hindering growth in the real estate sector, especially with the rising costs of raw materials.
You can also check The Real Estate Market in Dubai Will Slow Down in 2023.
Impact of Fiscal Budget 2024-25 on Real Estate
The upcoming fiscal budget (2024–25) adds uncertainty to the real estate industry’s fate, with buyers advised to be cautious and wait for potential reforms under the new government.
Conclusion
In conclusion, the challenges in Pakistan’s real estate market are likely to persist for the next few months, making it a challenging time for potential investors.