An Insight into the Real Estate Sector of Pakistan for 2024
The real sector of Pakistan has witnessed steady growth in the past decade; however, the journey of Pakistan’s property sector has been through rise and fall, a couple of times during the last 3 decades.
The most recent fall was seen back in mid-2022, when the government was overthrown, and a caretaker government took charge. The real estate sector has been suffering ever since, and it has been almost 1.5 years, since, this sector has been facing downfall.
Now, that the New Year 2024 has emerged, people linked to the property sector, whether they are developers, real estate consultants, marketing firms, investors, or potential customers, everyone is concerned about it for the year 2024. The main concern is that, whether the real estate sector will be able to revive or conditions will get much worse, than how they appear to be today.
This blog will give you a deep insight into the future of Pakistan’s Real Estate Sector for the year 2024. In addition to this, we will also discuss the past difficulties, recent downfall, the future, and how to manage your investments in 2024.
Contents
The Past Downfalls of Pakistan’s Real Estate Sector
The downfalls in the real estate sector are a new thing, no matter what the country is, the real estate sector is quite dynamic, and where there are booms, there are also hard times. Pakistan’s Real Estate Sector also faced some downfalls in the past decades.
One of the downfalls was seen back in 2013-2014 when the real estate sector seemed to suffer a lot due to multiple different reasons. This downfall was not permanent, and the real estate sector, due to its dynamic nature, survived and flourished for a couple of years.
The Ongoing Condition of the Property Sector
The most recent downfall is the one we are witnessing today, from the past 18 months. Ever since the government was overthrown, an economic crisis followed, which affected the real estate sector similar to other sectors and industries.
Due to economic instability and inflation, the real estate market suffered, as investors and potential customers stopped investing in real estate. Furthermore, Overseas Investments declined as well, overseas Pakistanis were unsure of the future of their investments; therefore, they stopped investing in the property sector of Pakistan.
Today, in the real estate market, the conditions are not very good, mainly due to political and economic instability, inflation, and high taxes on property. Today, we see an increased number of sellers, as they are concerned, that the real estate sector might suffer in the long term and cause them loss. But there are two sides to this story, we have seen the property sector get back on its feet and it will do so this time also.
Real Estate Sector Improving Again?
It is also important to mention that the recent downfall of Pakistan’s real estate sector is not permanent. Better days will come and this sector will restore its former might, as the economy gets back on track, a proper government takes charge of the country, and things go back to normal after political stability.
Investors should not be afraid, but they should benefit from this opportunity to purchase assets and using the long-term investment approach, benefit from the returns.
Read Also: How Is Political Instability Affecting The Real Estate Sector Of Pakistan?
Insights of the Real Estate Sector in 2024
Looking at the current situation it is difficult to say whether the real estate sector will get better in 2024 or stay the same. However, there are certain factors, when considered; we can say that it will get better in the coming months of this year.
Let us discuss these factors in detail below:
Impact of the General Elections
As you know, the caretaker government has announced the date of the general elections, and they are most likely to hold on the given date. General Elections have a noticeable impact on the real estate sector of Pakistan, as a proper government takes charge of the country and all ministries and institutes can work peacefully towards their circles.
The Real Estate Sector is the backbone of the economy of Pakistan, therefore, no matter which party gets the government, betterment of the property sector will be a major agenda for them, as not only local but also overseas investments are linked with this sector, resulting in the betterment of the economy.
Furthermore, the need for affordable property is increasing throughout the country; therefore, the selected government will pay special attention to this issue.
Read Also: Types Of Property In The Real Estate Market Of Pakistan.
Betterment of Economy
The condition of the economy is not hidden from anyone; it has been the worst in history, so the betterment of the economy will be the foremost ambition of the new government.
As the economy gets better, the purchasing power of investors and the public will increase. Therefore, the property sector is likely to get more purchases, hence, resulting in flourishing and betterment.
Impact of Budget 2024
It is important to mention, that the budget for 2024 is also a hope for the revival of the real estate sector. The government is likely to reserve funds for improving the property sector and bringing new housing projects like the “Naya Pakistan Housing Scheme” to meet the ever-increasing demand for affordable housing.
Moreover, special incentives may be introduced for locals as well as overseas Pakistanis to boost investments in the property sector.
Overseas Investments
The present conditions are not suitable for overseas Pakistanis to invest in real estate in Pakistan. When a stable government takes charge, the overseas community will get a sigh of relieve, as already invested money will become safe as well as new investments will be much safer. The trust of overseas Pakistanis will be restored and the overseas property investments are expected to rise in the year 2024.
Read Also: Best Investment Options For Overseas Pakistanis.
Tax Policies
With a new government and a new budget for the fiscal year, the authorities likely give relief on taxes, especially in the real estate sector. In the past year, we have seen new taxes that are implemented in the sector, and percentages of already existing taxes increased, hence, reducing the buying power of investors. Tax reforms and relief will greatly influence the real estate sector and put it on the path of betterment.
Investments in the Real Estate Sector in 2024
Now, that we have given you some useful insights for the real estate sector in 2024, it is important to guide you through the investment techniques for 2024, which you can use to earn maximum profits in the future.
Read Also: How Overseas Pakistanis Can Invest In The Property Of Islamabad.
The long-term investment approach
If you are already an investor, or if you are a new investor, you should shift to the long-term investment approach as soon as possible. The reason behind it is that short-term investments can be considered when the property sector is on the high rise, during such times, you can get excellent returns on short-term investments within 1 to 3 years.
It is wise to make long-term investments during the down period of the real estate sector, and change your point of view; long-term investments have more potential of rewards. We suggest you make long-term investments.
Make investments for a minimum period of 5 years and idealistically for more than 5 years to 10 and 12 years. Rethink your expectations, and become patient, this way you will enjoy far greater returns in the future.
Wise Selection of Projects for Investments
In the year 2024, it is also important to pay a huge amount of attention to choosing the project for long-term investments. It is important to tell you not just to consider the current situation of a project, but also consider the past performance and future scenarios.
This way you will be able to choose the best projects for investments. Do a lot of research, and go for the projects that showed good performance in the past, although it is not performing exceptionally well in the present, and focus on its future growth potential.
Read Also: 9 Housing Schemes For Overseas Pakistanis.
Some Projects for Investments in 2024
Here are some projects you should consider if you want to invest in 2024:
- Rudn Enclave Rawalpindi
- Capital Smart City
- Faisal Town Phase 2
- Park View City Islamabad
- Bahria Town Phase 8 Extension
- New Metro City Gujar Khan
- New City Paradise
Understand the Election Impact
It is very important to understand the election’s impact on the real estate sector. The general election of 2024 can be a game changer for the property sector as well as the housing projects in Pakistan.
However, do not become a blind trustee. The betterment of the real estate sector depends on the policies of the winning party in the upcoming elections. Do your research, analyze the facts and predictions, and adjust your real estate investment policy accordingly.
Golden period to make Assets
We have gone through all the positive and negative impacts on the real estate sector in 2024. Now, it is important to tell you, that this is the golden time to make investments. The market is quite slow and properties are available at highly affordable rates.
You can purchase properties at the prices at this specific time, because there are a lot of sellers and lesser buyers, hence resulting in the low prices of properties. Therefore, investors should act accordingly and purchase assets to add to their portfolios, once the market gets better, they can sell them and enjoy huge profits on their investments.
For the best investment consultation, please feel free to contact Manahil Estate.
Read Also: Why Real Estate Is The Best Investment Amid Inflation And Uncertainty?
Conclusion
As the New Year emerges, new hopes arise for the real estate sector of Pakistan. This sector has been facing a downfall for the last 18 months, however, the New Year with many happenings in the political and economic areas, comes with good hopes.
Looking at the major events of 2024 like the general elections, budget 2024, and the tax reforms, we can say that the sector is getting better, with investments from overseas communities and steps by the new government.
However, it is not possible to give a solid suggestion about whether the property sector of Pakistan will get better or not. People related to this sector should stay informed, reform their policies according to the latest events, and get the most out of it.
Stay tuned to Manahil Estate for more insights, investment advice, blogs, news, updates, and valuable content related to this sector!
