Hey there! so earlier we came to know that the real estate business in Pakistan is growing at a rapid rate. But, no matter how much investment this industry is getting still it has threats and challenges that it has to deal with.

Looking at the current condition, which is far better than before, since 2020 construction has begun at a tremendous level which gained momentum in 2021 as well. Nowadays it’s a golden chance for investors to invest.

Your choice today will help you make millions tomorrow.

We know that some plots doubled in value and some even tripled in these two years 2020-21.
Pakistan’s present government has supported this sector by;

• Making changes to raise government tax revenues
• Preventing speculations in purchases of real estate business

Pakistan is yet a developing country but it gives a safe opportunity for people to invest. However, the challenges the real estate business in Pakistan has to face are due to many internal and external factors.

Challenges Faced by real estate business in Pakistan

Let’s start by considering the harshest current factor which is COVID-19. Covid has had a huge impact on real estate globally, as well as in Pakistan. Pakistan being a developing country handled everything smoothly yet few things have affected the real estate business in Pakistan immensely.

Two questions need to be considered now,

Are people willing to invest in property without being scared of Covid and its Effects?

Will the demand for real estate rise as people will prefer to work remotely?

Interest rates

Interest rates are critical to the development and advancement of real estate. People prefer investing, taking loans from financial institutions when the interest rate is low. The fear that the interest rates would rise creates a hurdle. Hence, for more investments the government should try to lower the interest rates; as the lower the interest rates the more investors/general public is interested.

The current Interest rate is 9.75% which is surely very high.

Management

People in Pakistan start their business on real estate knowing nothing about how it works. They highly need to educate themselves, polish their skills and abilities, and accompany themselves with an experienced, knowledgeable person. This is how they would enhance their personal and public skills, also grow and mature to stand out in this business.

Deception about real estate business in Pakistan

When we look back we see that people were smart but didn’t have opportunities or maybe they weren’t too interested in growing financially and economically. But, today people are determined and smart enough to discover ways to grow personally and economically. Stuff like fraud exists no more.

THE REAL ESTATE BUSINESS IN PAKISTAN IS BASED ON TRUST AND CREDIBILITY.

None can harm or break rules, not today nor tomorrow.

Less Focus on Educating people on Real Estate

As discussed earlier people should seek professional degrees before entering into this business, undoubtedly it will create a huge difference. Currently, people are in this business because of their experience. However, I believe a qualified professional will make a difference in Pakistan real estate business.

Inflation Rate

Pandemic has affected the prices of commodities to the prices of real estate globally, causing an uncontrollable increase in prices. It can also be referred to as hyperinflation.

No Budget Calculation

People and investors without any evaluation of their budget start a project and leave it incomplete in the middle, just because they didn’t do their needed calculation for the project. Highly unprofessional behavior.

If you are looking to buy property in the most prime locations of Pakistan, head over to Sapphire Builders & Associates. Sapphire Builders & Associates is one of Pakistan’s leading real estate companies, based in Islamabad. You can invest in Sapphire Builders & Associates‘ flagship project, Opal Mall & Luxury Suites, which is located in Bahria Paradise Commercial. If you’re looking for a holiday place in beautiful valley of Murree – Sapphire’s second project Oak Vista will be the best option to invest in.