Real Estate Challenges and opportunities in the year 2021
One of the important and growing industries of Pakistan is Real estate. $5.2 billion has been spent by Pakistan on construction. Real estate is a major industry in Pakistan. Although growth and improvement have been done in this sector, a lot of people are still unable to get any shelter. So it’s clear that there is a need for more improvement in the market. People from all levels of social status can get a house.
Let’s look at the main highlights of Pakistan Real Estate Market trends in 2021.
The Economy is in a free-fall state:
The 2020-21 budget is kind of vague and the link to reality is invisible in the budget. According to the IMF 1.5 percent decline in the economy will occur in 2020-21. real GDP will decline by 4.5 percent.
COVID-19 and Locust Attack have almost destroyed the economy of Pakistan. Unemployment is still high and due to all these factors, people are not going to purchase land because of the fickleness of the political and economic-political conditions.
Record High Debt to GDP Ratio:
There was a rise in the property during 2003-2013 in Pakistan. The debt-to-GDP ratio was declining during both booms. Debt to GDP The ratio in 2003 was 50 percent, compared to 65 percent in 2013. But the debt to GDP ratio is now 86 percent and rising. So, we can see where the price of real estate in Pakistan is going.
The decline in common man buying power:
The decline rate has been seen in the purchasing power of local Pakistanis. The law is passed in the middle east to increase the pay of workers. With the decrease in remittances by $5 billion. The current real estate crash scenario will proceed.
Conditions of Present Market
The new real estate market is very suitable for an assiduous investor. It’s feasible to hire a real estate agent. There is not all gloom and doom in the market. Some projects are good to invest in 2020-21.