Real estate is one of the most profitable sectors in Pakistan. It’s believed to be a great way for investors to reap amazing profit from the investment.  Not just this, Pakistan’s real estate is also a major contributor to the economy of the country. This sector has seen unprecedented growth, mainly due to improved infrastructure and industrialization. However, the country’s progress is still brazed out by several overarching real estate issues that are impeding people’s decisions to invest.

On top of that, the current economic and social turbulence has also fanned the flames. Let’s shed some light on the common concerns affecting Pakistan’s real estate to better understand the situation. Continue reading if you want to get a clear picture of the property market.

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Myths around the property sector

The real estate market in Pakistan is challenged by many myths. This is the reason why real estate professionals’ help and real estate transactions are often subjected to doubt by buyers. The best way to prevent such real estate issues is to make sure you do your research. Consulting the local development authorities to ensure the credibility of the project also helps in overcoming this issue. 

High property prices

Rising property prices are another major real issue faced by the country. Recently, property prices have sharply risen in Pakistan. Unlike other businesses, property prices are not commodity prices. Instead, their price is determined by the future expectations of value. The problem is that the price rise is not due to a shortage of supply. The speculative behavior of the buyer is the one to blame.

Lack of regulatory authority

Real estate regulatory authority is important to safeguard the rights of investors and other stakeholders. Despite all the incredible growth of the market, the sector still lacks a regulatory body to oversee it. The lack of a governing organization in Pakistan for a given real estate sector makes it vulnerable to various concerns and problems.

Lack of planning

One of the most crucial real estate issues in Pakistan is a lack of planning. The majority of its residents still do not have access to the most basic housing amenities despite country’s population is expanding quickly. There is a good likelihood that this industry will expand quickly shortly that way worsen the problem. To handle problems of this nature, careful planning is required.

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Bottom line

Pakistan has been grappling with various issues in the real estate segment for a long time. Primary real estate issues in Pakistan can be dealt with if a well-structured and regulated system is put into practice.  

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