Government Policies and Incentives for Real Estate Investors in Pakistan 2024
The real estate sector in Pakistan continues to play a critical role in the national economy. In 2024, amidst global economic shifts and local challenges, the government has introduced new policies and refined existing ones to further encourage investment in this sector. These initiatives are designed to mitigate the economic downturn, attract foreign investments, and stimulate growth in housing, infrastructure, and commercial real estate. Below are some of the latest policies and incentives rolled out for real estate investors in Pakistan.
Latest Government Policies and Incentives for Real Estate Investors (2024)
Increased Tax Exemptions for Low-Cost Housing Projects
To meet the growing demand for affordable housing, the government has enhanced tax benefits for developers working on low-cost housing projects. The tax relief, previously available under the Naya Pakistan Housing Scheme, has been extended until 2025, encouraging both domestic and foreign investors to participate in affordable housing initiatives. Additionally, developers of affordable housing projects are exempt from sales tax and capital gains tax (CGT), making investment in this sector even more attractive.
In 2024, the government has further incentivized investments in real estate development within Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC). These zones offer substantial tax breaks and import duty exemptions on construction materials and equipment, making them prime areas for commercial and industrial real estate development. Investors are also given land ownership rights with minimal bureaucratic hurdles, making SEZs a hotspot for real estate investment.
Green Building Initiatives
The government, in line with global sustainability trends, has introduced new incentives for green and sustainable construction projects. Developers incorporating energy-efficient designs, solar energy systems, water conservation technologies, and eco-friendly materials now receive a 50% reduction in property taxes for the first five years of operation. Additionally, green projects are fast-tracked for regulatory approvals, giving developers an added advantage in the competitive real estate market.
Expansion of the Roshan Digital Account (RDA)
The success of the Roshan Digital Account initiative has led the government to further expand its offerings for overseas Pakistanis in 2024. The RDA now includes more real estate investment opportunities with simplified processes for purchasing property remotely. Non-resident Pakistanis (NRPs) can invest in approved housing societies, commercial properties, and government-backed real estate projects with full transparency and protection under Pakistani law. The interest rates on property loans through RDAs have also been reduced to make real estate investments even more lucrative for NRPs.
Increased Focus on Public-Private Partnerships (PPPs)
In 2024, the government has ramped up its efforts to encourage Public-Private Partnerships (PPPs) in infrastructure and real estate development. This policy encourages private investors to collaborate with the government on large-scale real estate and urban development projects such as highways, mass transit systems, and affordable housing. Investors benefit from government-backed guarantees, relaxed regulations, and long-term financial incentives that minimize risk and enhance returns.
Digitalization of Real Estate Transactions
The government has made strides in streamlining property transactions through digital platforms. In 2024, the National Database & Registration Authority (NADRA) and Pakistan Real Estate Regulatory Authority (PERRA) implemented a secure, online system for property registration, verification, and transfer. This reduces the risk of fraud and accelerates the buying process, giving both local and international investors more confidence in the real estate market.
Real Estate Investment in 2024: The Role of Sapphire Builders and Associates
Amid these evolving government policies, one name stands out in the Pakistani real estate landscape: Sapphire Builders and Associates. Sapphire continues to set industry standards for quality, innovation, and sustainable development, making them a leading choice for investors. Their ability to adapt to and benefit from government incentives highlights their commitment to staying ahead of market trends.
In 2024, Sapphire Builders solidified its reputation with the launch of several high-profile projects. Their flagship development, Opal Mall & Luxury Suites, is a testament to their focus on vertical development, which aligns perfectly with the government’s push for high-density urban growth. This iconic project in Islamabad combines luxury living with commercial spaces, offering an all-in-one investment opportunity. OPAL Mall & Luxury Suites is a mixed-use development project located in the heart of Islamabad, offering luxury apartments and high-end commercial spaces. The project features state-of-the-art facilities, including a shopping mall, fitness center, and 24/7 security. With its prime location, modern amenities, and competitive pricing, OPAL Mall presents a substantial growth opportunity in the current real estate market. Investors can benefit from the property’s price advantage, making it an ideal choice for those looking to capitalize on the rising demand for luxury living spaces. Given these factors, Opal Mall & Luxury Suites offers an exceptional investment opportunity for those seeking a luxurious and convenient lifestyle.
Sapphire Builders also focuses on eco-friendly practices, tapping into the government’s green building incentives. The company’s developments incorporate energy-efficient materials, smart home technologies, and eco-conscious designs that are becoming increasingly popular in Pakistan’s real estate sector. Their commitment to sustainable and high-tech solutions positions them well within the new framework of government policies encouraging green construction.
Moreover, Sapphire’s transparency in property transactions, facilitated through digital platforms, aligns with the government’s push toward digitalization, offering investors security and ease of access. For overseas investors looking to benefit from initiatives like the Roshan Digital Account, Sapphire’s projects offer a perfect opportunity to invest with confidence, backed by a developer known for its reliability and quality.
As government incentives and policies continue to evolve, Sapphire Builders and Associates remains at the forefront of innovation, providing investors with premium projects that comply with regulatory requirements and meet modern market demands. Sapphire’s consistent progress reflects Pakistan’s broader real estate growth, making it a prime partner for investors seeking sustainable, high-return opportunities in 2024.
Parsa Ehsan is an MPhill Scholar pursuing her degree in Clinical Psychology .She has been the part of many Youth Organizations and conferences at both sectors (private & government) and climate change promotor. She has been writing content for multiple organizations since 4 years. Furthermore, she worked in different small grant community projects .She has been a part of German Red Cross as climate champion and was youth representative in youth parliament Ajk. She also served as First Aid Responder's team leader in Pakistan Red Crescent Society, Ajk state branch.She is also an English Works alumuna a program sponsored by US Embassy, Islamabad and currently serving in the leadership of Ajk North chapter as Exchange Ambassador. Her goal is to grow by getting different learning opportunities and to help the community in growing.
