The Property industry of Pakistan has seen great economic climbs in recent years. It’s perhaps one of the very few industries tha have prospered even in the wake of COVID-19 pandemic. However, even with the successful climb that the real estate sector has had, there are quite a few problems that need to be addressed as soon as possible if the industry wants to retain its good standing.
THE MOST COMMON PROBLEMS (& SOLUTIONS) IN REAL ESTATE IN PAKISTAN
Some of the major challenges for Pakistan’s real estate market in 2021 include:
- A Shortfall of Housing Units
- Misinformation About the Property Sector
- Lack of Awareness of Technology
- Limited Educational Resources on Real Estate
- The Need for Real Estate Regulatory Authority (RERA) in Pakistan
SHORTFALL OF HOUSING UNITS
The housing crisis has become major in Pakistan in recent years due to the ever-increasing population. According to a report published in 2019, Pakistan was facing a backlog of around 10.3 million housing units in both urban and rural areas. The housing shortage figure is expected to go further up to 17.4 million by 2025.
However, the current government has taken some serious initiatives to sort out the housing crisis in the country to some extent. The most noteworthy development in this regard is the launch of the Naya Pakistan Housing Programme by Prime Minister Imran Khan.
Under this scheme, the government is providing low-cost housing solutions to bridge the gap between demand and supply of residential units across the country. The target of this government-run low-cost housing project is to construct five million affordable houses. People belonging to labour class, lower-middle-class, and middle-class families are all eligible to apply for the housing program.
Another very prominent initiative taken by the federal government is the launch of the ‘Mera Pakistan Mera Ghar’ scheme in collaboration with the State Bank of Pakistan (SBP). Also known as the ‘Apna Ghar Sasta Karz’ scheme, it is a markup subsidy program that aims to provide housing loans at low markup rates.
MISINFORMATION ABOUT REAL ESTATE SECTOR
Back in the old days, to gauge the progress and profitability factor of the investment opportunities available in the real estate sector, a lot of people relied on word of mouth. There were not any reliable resources available to fetch relevant information back then.
However, with the turn of the 21st century, things were improved a lot with the help of technological innovations. Online tools and Search Trends keep you up-to-date with the fluctuating rates and performances of property markets in almost all the major cities of Pakistan. These cutting-edge tools are helping us to put an end to the concept of misinformation and eradicate other ill practices like property scams, allowing real estate stakeholders to regain the trust of their clients.
LESS AWARENESS OF TECHNOLOGY AND ITS BENEFITS
Technology is rapidly transforming the world around us. Unfortunately, the real estate industry of Pakistan still lags behind when it comes to the usage of technology. A lot of people aren’t aware of the latest tools and their benefits so they avoid using them.
LIMITED RESOURCES FOR REAL ESTATE EDUCATION
You would hardly come across a certified or qualified real estate professional in Pakistan. Most of the individuals are running this business only on the basis of their experience. Having educated and certified property agents in the market will make a whole lot of difference. With having proper knowledge of the industry, realty professionals could make the best possible use of their skills to harness the true potential of the property sector.
In the wake of the digital revolution that the property market has witnessed in recent years, there has been an increase in the demand for qualified real estate agents. As of now, the Panjwani Institute of Business Studies and Technology (PIBSAT) and the National Institute of Real Estate Management (NIREM) are the only two well-known establishments offering real estate courses in the country.
REAL ESTATE REGULATORY AUTHORITY (RERA) IN PAKISTAN
Need for Real Estate Regulatory Authority (RERA) in Pakistan
The establishment of RERA can protect the rights of both investors and stakeholders (Image Credits: Shutterstock)
With the absence of a proper body regulating a particular sector, it will always be prone to different kinds of problems and issues. The real estate industry, which is one of the largest business sectors of the country, still awaits the formation of a regulatory authority that would govern it.