5 Real Estate Investment Trends in Pakistan 2023
The year 2023, will become a turning point in the real estate of Pakistan. These trends will continue to grow in the next five years as well. It is expected that the country will have other economic and major legal transformations that will ultimately benefit this sector. Generally speaking, gated communities, mixed developments, low-cost housing schemes, high-rise buildings, serviced apartments, townhouses, golf course life, and villa-style homes are trending in the real estate investment trends in Pakistan. But the future shows several promising prospects in several areas.
Real Estate Investments Trends in Major Cities
First of all, to assess the broad theme of real estate investment trends in Pakistan for the year 2023, we need to break it down into major cities. After all, it is only the major cities at the moment which are booming with housing developments. So, the first one is Lahore where several housing societies such as Bahria Town, DHA, and Al Noor Orchard provide the most luxurious living conditions. These places have got a lot of opportunities for luxury residential units as well as lucrative commercial opportunities. Therefore, there is a huge potential for investment in Lahore city. Other cities such as Karachi will witness developments close to the seaside as the beachside lifestyle is something people aspire to. Whereas, Rawalpindi and Islamabad are one of the places where several new projects have started. On the other hand, Gujranwala, Multan, and Faisalabad are starting to attract a lot of investment in real estate as well.
Vertical Housing Structures
As the new century started, Pakistan decided to focus more on vertical development. In the past, the trend in the country was on making large housing societies, but now the trend of vertical development has also picked up. However, this trend was always there in places such as Karachi, and the trend of the metropolitan has now come into other cities. There are multiple scores of high-rise buildings populating the cities such as Lahore, Karachi, Islamabad, and Rawalpindi. According to many companies, the structural and legal requirements will make these places the next destination for commercial and residential investment. Vertical developments require very little land for development, therefore it has the element of feasibility. In a widely populated country like Pakistan, it seems like a wise option. Hence, this is most definitely one of the real estate investment trends in Pakistan for the year 2022.
Real Estate Investment Trusts
Perhaps one of the most important real investment trends in Pakistan in 2022 is the establishment of real estate investment trusts. Real estate trust schemes are one of the sure and safest ways to invest in the real estate sector. Last year there were more than a thousand real estate trusts registered and listed on the stock exchange. Now real estate will become a profitable investment as an investment in these trusts assures long-term profit. More people will invest in real estate trusts this year as compared to the previous investments. Moreover, these investments are expected to increase over a period of years in the future. This gradual rise in investment is going to add more to the sector.
Regulations for the Real Estate Sector
Traditionally the real estate sector in Pakistan has been termed as a means of tax evasion. This has been reported by FBR as the department said that even though real estate is a hugely profitable sector, its contribution to the national economy is almost none. Even though it supports other industries. Therefore, there will be a lot of new regulations for taxing the real estate sector this year. Therefore, investments in real estate will be affected by this change as well. Transparency will increase investment for sure.
Digitalization of Real Estate
Modern times are known for their trend of digitalization. Every commercial activity has come to the digital world now. You can also foresee the huge digitalization of the real estate sector in Pakistan. From the real estate portals started by real estate companies to the social media platforms being exhaustively used for the marketing of projects. So, another real estate investment trend in Pakistan is going to be digital marketing as well.
The real estate sector is changing rapidly with regard to the progress in technology. It is also heavily influenced by the development of regulations and legislation which will further shape the future of real estate. Another major aspect is the rate at which real estate projects are being developed in major cities of Pakistan since that is where it is taking root. But perhaps, one of the biggest real estate investment trends in Pakistan will be the presence of trusts that will facilitate a lot of investment in this sector.