In Pakistan’s economy, currently, Real estate serves as a big pillar. According to the World Bank records, the contribution of real estate is 60 to 70% of the country’s entire wealth and a total amount of $300 to $400 billion. Pakistan is facing a downfall in the economy since 2017. Now the development rate is 5.5 which is affecting the economy and real estate business as well. Internationally, the real estate business is doing very well.
Pakistan’s real estate market is always very unpredictable for buyers and sellers. There is some uncertainty present. Some factors directly affect the market which mostly include the economic conditions of the country, changes in the government, and policies. Though, the marketplace can also be one of the most lucrative if you play your cards right. In recent years, the country has laid importance on the asset prospects in this sector and has established various guidelines and improvements to encourage people to invest.
Because of the Karachi and Bahira scandal, the last year was not so good for this business. Those matters have since been determined and the market for 2020 holds a lot of promise.
Covid Effect on real estate
The main unfortunate thing of 2020 was covid due to which all businesses faced downfalls. Even after things are getting normal and controlled under precautionary measures there is a major drop in the market.
Investors are holding their money and waiting for the right time to invest but currently, no one is investing in this business. The virus has instigated massive redundancy which has taken a severe smash in the budget. Eventually, it has also caused hesitation in participating in real estate. But as a buyer, it is a good time to invest, as the prices are comparatively lower.
But we are hoping as the pandemic solves, the market will boom up with prices.
2020 was a hard year for Pakistan as well as for the world. The dollar was tremendously unbalanced with an increase at an all-time high. As the dollar rate has now stabilized let’s hope this will be a good year for the real estate business.
To sum up, the overall year was patchy for the business and a clear downfall has been seen. Prices were lower and the investment rate was low too. But if you are looking to sell, you have an advantage later in the year when the Prime Minister’s modifications come into a consequence that takes in foreign investment to the country.