Top 5 issues in the real estate industry of pakistan and their way forward

Pakistan is a developing country that is quickly improving and innovating. Industrialization and infrastructure development have significantly boosted Pakistan's economy. It is worth saying that, like other vital industries in Pakistan, real estate has grown gradually.

It is now regarded as one of Pakistan's best business and investment opportunities, owing to significant benefits such as asset ownership, high returns, and security. However, some real estate challenges in Pakistan are caused by external and internal factors. In this blog, Apex Group will discuss the difficulties in understanding the real estate market and its dynamics. Continue reading to learn about the challenges of real estate in Pakistan.

Investors' Loss of Motives

Although some major facts hold Pakistan's real estate business, one is the loss of investors. The government of Pakistan has imposed some strict policies against investors in the realty business. Non-filers of Pakistan are not allowed to purchase a property that exceeds 5 million until they register themselves in FBR (federal board of revenue) as fillers. The strict banking policies on banking transactions of non-filers were the main reasons that discouraged investors from putting down revenue in this sector.

Non-execution of Developmental Budget

Many reasons lead to a downfall in real estate, and the major problems are due to financial, economic, and political provocations. The developmental budget never executes completely on developmental projects. This problem pushed a lot of contractors to give up their services, which generated poverty issues for people and devastating real estate problems.

Tax on Non-filers

As you know, most overseas Pakistanis have many real estates investing difficulties. Overseas Pakistanis cannot invest in other businesses, real estate is their only option that does not require their presence, but due to government policies for non-filers, those overseas Pakistani are afraid of investing their hard-earned cash in the realty business. Another reason that discourages overseas Pakistani is their presence in the country to complete the procedure. These are some reasons that have limited Pakistani overseas investment in real estate.

Rates of interest

The role of interest rates in the growth and development of the real estate market is critical. People can obtain loans from financial institutions and banks. When interest rates rise, fewer people take out loans, and demand in the real estate market, particularly the housing segment, falls precipitously.

The government should take intense measures to ensure a low-interest rate to increase demand for real estate products. It will entice investors and the general public to make real estate investments.

Scam in real estate

Real estate scams can happen in Pakistan. Many people and fraudulent companies try to defraud innocent people by selling fictitious real estate projects. The digitization of real estate records in Pakistan has begun, and all registered and legitimate real estate projects will be listed. Before investing in real estate projects, do a quick research and check with your local development authorities to ensure the project's credibility.

So, these are some of the prevalent real estate challenges in Pakistani society. To meet these challenges, we must unite as a nation to ensure transparency, security, and community well-being. Although these significant real estate drawbacks are going through many problems right now due to high tourism demand and the latest government policies, we hope that the realty business will grow in the upcoming years with unexpected margins and that Pakistan shall be able to increase its realty horizons. In addition, the government should take radical measures to eradicate all real estate loopholes and malpractices.

For more information, feel free to contact Apex Group.