Pros and Cons of Investment in Pakistan’s Real Estate
Pakistan’s real estate industry is growing, and investors are responding well to large-scale investments. Many investors from domestic and foreign markets are interested in investing in Pakistan. As per the report, Pakistan’s real estate market will grow by 30% in the next five years.
All aspects have pros and cons. Likewise, Pakistan’s real estate market has both. First, talk about the benefits of the real estate industry, including the possibility of a long-term, reliable investment and the opportunity to build a home.
In 2023, many housing projects will be on the market. This includes societies in Pakistani megacities such as Karachi, Lahore, Islamabad, and Peshawar. These housing ventures provide a great opportunity for salaried people to build homes in gated communities by offering easy monthly installments.
Today, thousands of families live in safe and healthy environments. Without the rise of real estate, it would have been impossible for the lower middle class to build houses in such splendid societies.
As per a recent World Bank report, the real estate industry is the second-largest employment after agriculture. The sector has created enormous employment opportunities and earned huge profits for middle-class families.
Now, talking about the cons of the real estate sector in Pakistan, there are a few things to consider. The real estate market fluctuates occasionally, making real estate values unpredictable and affecting investors.
Another challenge is complex government procedures and documents that can add to the complexity of buying and selling property. There’s a chance that people will buy and sell property just to make quick money, which isn’t really a good strategy.
In addition, one thing to note is that Pakistan does not impose huge taxes on real estate. While this may seem like an advantage at first, there is a major downside to it. Without taxes, governments lose potential revenue that could be spent on development projects and public services.
This will negatively impact social services and infrastructure development, among other aspects of the economy as a whole. So even if it looks like a short-term benefit, it has long-term implications for the national economy.
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