One of the real estate divisions in housing marketing. Pakistan has witnessed a tremendous upward-sloping trend in housing marketing in a couple of years. This article gives you some insight into the housing market. And provides some predictions for buyers and sellers from changing dynamics of markets, challenges, and opportunities.
Lack of resources and less employment in remote areas of Pakistan (rural) causes rapid urbanization that has ignited the fuel that in turn the demand curve to grow much slipper than ever before. People started migrating from the rural area to metropolitan cities for employment and a better future, leading to changes in lifestyle this increases the demand for residential properties, mostly in metro cities like Karachi, Islamabad, and Lahore. Analyzing this shift in demand the property owner, investor, and real estate agents have put all their effort to chatter this dramatic shift, which leads to new development projects and housing schemes. Moreover, it also created employment opportunities for the lower-class daily wage laborers. This again risen the demand for slums which is also a part of housing under the dark side of the economy.
With the increasing population migration to urban areas, the trend for high-rise buildings and gated communities is also demanding a lot. People who want a luxurious life with security and safety features are choosing the option of these gated communities. Middle-income level business owners or have a middle-level income (ranging from 4 to 6 lacs a month) from jobs prefer these apartments. The vertical expansion has optimized land usage and helped to tackle the current needs of housing. About 80 percent of the population in Pakistan is unable to bear the cost of a bungalow in a metro city. Moreover, it consumes a lot of land area. Horizontal expansion is much more expensive than vertical expansion.
Government is very keen to habilitate individuals having low income or lack of financial resources. The government of Pakistan starting many new projects in this regard. Loans with very minimum interest rate tax incentives and affordable housing projects are developed like the Naya Pakistan project. Which was started aiming to provide housing facilities for low-income individuals.
Since the drastic change in the housing market, it reached a point where it faces a lot of challenges too. Some of the common challenges that every stakeholder bears it price fluctuation, market saturation, and regularities issues like agricultural land soil tests for building houses, etc. Additionally, legal issues are very time consuming and hectic processes. Which leads to the credibility of builders and developers.
This also affects the pricing and valuation of the property.
The valuation of any housing scheme is directly dependent on the infrastructure development their construction of new road highways, hospitals, schools, madrasas, and transportation networks gives the property more valuation.
The housing market in Pakistan has experienced a dramatic boost which creates a lot of opportunities and developments. Moreover, this section also has a lot of challenges due to rules and regulations.