A number of well-known international real estate investment & development companies have expressed their interest in Pakistani real estate during recent months. Among them is Al-Ghurair Giga Group, a large builder based in Dubai. According to sources, the group is starting a multimillion dollars project in Islamabad what is said to be a high-rise complex by the name of Gold Crest Views. Ora Developers, a famous developer based in Netherlands is starting large suburban residential project in the outskirts of nation’s capitol Islamabad in collaboration with two major Pakistani developers. Spread over million square yards, this project will be a one of its kind modern housing scheme.
One may ask, what is it that makes Pakistani real estate so lucrative to invest in? And why now? Answer: it didn’t just happen overnight. As it would appear, multiple factors have played an important role placing Pakistan’s unexplored real estate on world’s map during recent months & years. China Pakistan Economic Corridor, known mostly by its acronym CPEC, started by China under it’s One Belt One Road initiative (OBOR) made headlines all over the world when it was announced back in 2013. Under this umbrella, China has so far, according to some estimates, invested over $87 billion in roads, infra structure, power sector, agriculture & many other areas. This mega development has not only generated massive demands in manufacturing & construction sectors, it has also provided new employment opportunities in a previously struggling economy. Needless to mention, projects started because of CPEC themselves require a lot of new real estate.
New projects generating demand for new towns & residential areas while new roads providing access have created a synergetic effect for the real estate development. Government’s ease of policies & introduction of Naya Pakistan Housing Scheme have made it much easier for low income consumers to get bank loans at low interest rate for construction of new houses. This initiative have turned a lot of previously unused cheap land around the cities into prime real estate with housing mortgage increasing by 75% in FY 2021 alone.
Another major factor for consideration is the Covid-19 Pandemic. With most of the world going into strict lockdowns & governments introducing many restrictions, Pakistan as a country has been much less severely hit in comparison with many other countries with similar population & demographics. This made it possible for business to continue working with relative ease compared to the rest of the world. Seeing that their investments are promising during even the most testing times, domestic as well as foreign investors had their confidence intact if not increasing.
The investor who ought to know, knows that Pakistani real estate has been under appreciated in past. It still is. For a fast growing population comprising 98% Muslims that are mostly averse to interest based earnings, real estate presents a unique investment opportunity because of its safety & promising returns. Despite many new public & private initiatives, there remains a severe shortage of houses in the country. A gap that would take decades to fill & promises heavy returns. It’s a no-brainer to say that the current opportunities as well as future potential would continue to make Pakistani real estate an attractive choice for investors both foreign & domestic in years to come.
Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of ZAMZAM Estate & Developers or it’s associates.