Forecast Of Pakistan Real Estate Market In 2022!

Brief Background of Real Estate Market in Pakistan
Options regarding Pakistan Real Estate Market in 2022
Real Estate In Punjab
Real Estate In Islamabad
Real Estate In Sindh
Real Estate In Khyber Pakhtunkhwa
Real Estate In Balochistan
Factors Expected To Affect Pakistan Housing Market

According to the World Bank, nearly 60-70% of reserves of the State of Pakistan are invested in real estate. In the post COVID world, one of the most unexpected was the housing business in Pakistan. Even though it was held paralyzed for nearly 6 straight months, Pakistanis were very keen to return to the business as soon as the lockdown was removed.

What are the factors affecting the Pakistan housing market in 2022, who is the potential buyer and will home prices drop in 2022? We will go through a journey named Forecast of Pakistan Real Estate Market in 2022.

Brief Background Of Real Estate Market In Pakistan

Real Estate Market In Pakistan
Real Estate in Pakistan has seen many ups and downs

Before predicting the Pakistan real estate market in 2022, we should identify the background and the potential consumer of the housing market in Pakistan. Real estate is a considerably fast-paced industry in Pakistan. However, sometimes it does act like a dormant or sleeping sector since it asks for a large sum of money. Nevertheless, it was not always the case within Pakistan. Think tanks have pondered the depth of the issue and have identified the lack of purchasing power of a common man as the main culprit.

With the advent of prop-tech, overseas Pakistanis did express their interest and did invest in Pakistan’s real estate for a fruitful future. On the other hand, the Pakistanis who chose to live in Pakistan did fall under the weather of political turmoil, bad economic policies and a lack of confidence.

With the advent of the 21st Century, the poor economic policies made the Pakistani rupee lose its strength against the US Dollar. Meanwhile, there was no significant attention on a common man’s purchasing power. As a result, the overseas Pakistani and the affluent one’s in Pakistan became the only potential buyer of the real estate market in Pakistan. However, common man also extends a little to participate in the market but the ratio is very low. As reported in 2021, the same class is expected to remain dominant within the Pakistan real estate market in 2022.

Options Regarding Pakistan Real Estate Market In 2022

Let’s discuss what will be the best cities for real estate business in Pakistan. Meanwhile, this list is composed on the database available to Jagahonline’s search engine. Searches made and the deals struck through Jagahonline’s mechanism are used to bring more precise and perfect knowledge for the potential buyers of Pakistan. Below we have separated the opportunities according to the provinces in Pakistan. By considering the following structure, it will be easy for investors to get the best out of real estate business in Pakistan. Without further ado, let us share with you some of the best opportunity generating nominations for Pakistan real estate market in 2022;

1. Real Estate In Punjab

Real Estate In Punjab
Punjab is expected to be the top contributor in Pakistan housing market 2022

Punjab is the biggest opportunity producing province for the real estate business in Pakistan. Meanwhile, many of the cities in the province are industrial centres. Such distinction helps Punjab attract more and more consumers and we may expect a little home prices drop in 2022. Hence, we can say it is the biggest market and can turn out to be a lucrative sector of Pakistan housing market in 2022. 

Top Markets For Investment In Punjab

  • Real Estate in Lahore
  • Real Estate in Rawalpindi
  • Real Estate in Multan
  • Real Estate in Faisalabad
  • Real Estate in Sialkot

Let us tell you some more information about their potential regarding Pakistan real estate market 2022;

Real Estate In Lahore

The introduction of tax and other official property rules has marvelously molded the Lahore real estate market. The real estate in Lahore is considered to be the top-performing market in Pakistan real estate market 2022. Meanwhile, it is a rapidly expanding metropolis to suit residents’ housing needs attracting more consumers to buy a house in Lahore. In addition, Some of the popular searches made on JagahOnline property website goes as a house for sale in DHA Defence, a house for sale in Johar Town and a house for sale in Bahria Town. Meanwhile, families opted to look for a flat for sale in Bahria Town and flat for sale in Gulberg.

Projects For Real Estate Investment In Lahore

  1. DHA Defence
  2. Bahria Town
  3. Bahria Orchard
  4. Park View City
  5. LDA City

2. Real Estate In Islamabad

Islamabad is the second to be included in the list of best opportunity generators in the Pakistan real estate market in 2022. The clean and green ambiance of Islamabad has become the apple of the eye for the affluent class of the society. Since it is the capital of the country, all of the basic necessities of life are provided uninterrupted. Islamabad is a growing city extending from all fronts, hence the green capital can be a good housing investment in Pakistan. Meanwhile, the best areas to buy a house in Islamabad include;

Top Markets for Investment in Islamabad

  • Real Estate in Sector F-6
  • Real Estate in Sector F-7
  • Real Estate in Sector G-13
  • Real Estate in Sector I-8
  • Real Estate in B-17
  • Real Estate in DHA Defence

Projects For Real Estate Investment In Islamabad

  1. DHA Defence
  2. Gulberg
  3. Bahria Town
  4. B-17
  5. Park View City

3. Real Estate In Sindh

Moen jo Daro in Sindh
Moen-jo-Daro is present near the city of Larkana

It is no surprise to see real estate business in Pakistan including Sindh on top of the list. Real estate in Sindh is considered to be pretty lucrative from an investor’s perspective. The agricultural lands and the industrial capacity within the province are attracting foreign investments as well. Moreover, it possesses a consistent history and a dominant share in the real estate market in Pakistan. As a matter of fact, it will be among top contributors of the Pakistan real estate market in 2022.

Top Markets for Investment in Sindh

  • Real Estate in Karachi
  • Real Estate in Hyderabad
  • Real Estate in Sukkur
  • Real Estate in Larkana

Real Estate In Karachi

Karachi, in fact, is a city that provides both jobs and business possibilities. In comparison to other capital cities throughout the world, the city is one of the most affordable locations to live, thus investing in the real estate market of Karachi could be a good choice in 2022. Meanwhile, Karachi has something for everyone, hence a huge home prices drop in 2022 is expected looking at the pace of activities happening last year. As a result, houses for sale in Karachi can contribute remarkably to the Pakistan real estate market in 2022. 

Projects For Real Estate Investment In Karachi

  1. Bahria Town
  2. Scheme 33
  3. Gadap Town
  4. DHA City
  5. DHA Defence
  6. Malir

4. Real Estate In Khyber Pakhtunkhwa

Khyber Pakhtunkhwa features lush greenery and huge mountains; hence nature is something which comes with houses for sale. Nonetheless, most of the local people tend to invest in the real estate in Khyber Pakhtunkhwa (KPK). Meanwhile, a little contribution may be multiplied in 2022; since the huge projects like DHA Defence have made their way into KPK. As a result, it can also possess true potential to lead in the Pakistan real estate market in 2022.

Top Markets For Investment In Khyber Pakhtunkhwa (KPK)

  • Real Estate in Peshawar
  • Real Estate in Abbottabad
  • Real Estate in Nowshera
  • Real Estate in Mardan

Real Estate In Peshawar

Peshawar’s rising housing projects are a wonderful investment that will primarily benefit the investors. Following the well-structured infrastructure and sophisticated urban facilities, the city is growing at a phenomenal rate. Meanwhile, real estate in Peshawar is the leading demand generator from each province in the Pakistan real estate market in 2022.

Projects For Real Estate Investment In Peshawar

  1. DHA Defence
  2. Regi Model Town
  3. Warsak Road
  4. AWT Housing Scheme Badabair
  5. WAPDA Town

5. Real Estate In Balochistan

Real Estate In Balochistan
Beaches are present along the coast of Balochistan

Balochistan was a neglected sector when it came to real estate investment in Pakistan. However, due to the China Pakistan Economic Corridor (CPEC)’s remarkable success, Balochistan is gaining attention. Moreover, such attention is getting popular day by day, and Balochistan is turning out to be a reliable site for real estate investment in Pakistan. Meanwhile, the real estate in Gwadar is turning out to be the underdog in Pakistan housing business.

Top Markets for Investment in Balochistan

  • Real Estate in Quetta
  • Real Estate in Gwadar

Real Estate In Quetta

Quetta is the only metropolitan in Pakistan’s largest province; hence, people from nearby villages and cities always make their way into Quetta. They seem to be so interested in buying a house in Quetta just because of the facilities it possesses. Meanwhile, there are quite a few possibilities that Quetta will be quite active in the Pakistan real estate market in 2022.

Projects for real estate investment in Quetta

  1. DHA Defence
  2. Airport Road
  3. Samungli Road
  4. Zarghoonabad Housing Scheme

Factors Expected To Affect Pakistan Real Estate Market In 2022

No one would have thought that a mere virus would stop the wheel of life, but it did. Similarly, there are many definite and unexpected factors who will be playing a crucial role in the Pakistan real estate market in 2022. These factors are;

  • Interest Rate
  • Governmental Policies
  • Economic Condition of the State
  • Political Instability
  • Confidence of Investor
  • Purchasing Power of a Common Man
  • Encouragement to REITs
  • New Wave of COVID-19

In addition, let us brief you about these terminologies and the effects they can possess;

Interest Rate

Interest rate depends on the dollar a state earns
Interest rate depends on the dollar a state earns

The State Bank of Pakistan regulates the interest rate on loan in Pakistan. It is usually derived from the economic needs of the time. On the other hand, Pakistan real estate market in 2022 will be directly related to the rate of interest set in the next year. If the government presents a low interest rate for buying a house, it will invite new buyers and the market will flourish. In light of this, the government will avoid setting high interest rates. Because no one likes high interest rate for buying a house.

Governmental Policies

At the end of the day, it is the government’s responsibility to encourage investors and provide subsidies to the masses. Hence, Pakistan real estate market in 2022 will be expecting special attention from the government. In order to flourish the market, the government is expected to revise the reforms regarding over regulation of the housing market in Pakistan. Meanwhile, the establishment of a national Real Estate Regulatory Authority (RERA) is also on the table. Since the plan of RERA has already influenced the market, it will be playing a crucial role in the Pakistan real estate market in 2022.

Economic Condition Of The State

Economic Condition
Economy of a country always play an influential role in deriving policies

The economic condition of a state always helps in suggesting the future of any industry. Since Pakistan is a developing country, one may expect that it will be progressive towards the Pakistan real estate market 2022. In addition to that, Pakistan is also facing a huge shortage of housing. As a result, a capable team of economists will shed light to the issue which will directly affect the real estate business in Pakistan. Furthermore, it may attract new consumers to consider the interest rate for buying a house.

Political Instability

This might seem quite unusual to international investors but in Pakistan, this factor will be a not-to-neglect one. Nevertheless, political instability may cause the change of policies which will be directly affecting the Pakistan real estate market in 2022. Considering the latest development, one may wish to see business in Pakistan work synchronized with the mind-set of the elected political regime.

Confidence Of Investor

Confidence Of Investor
Securing the confidence of interest is the core element in the real estate market

If everything mentioned above is well to perform, then this is the last pillar which the property market in Pakistan will be affected from. Since, the government is destined to maintain the confidence of an investor. However, last year due to tax modifications and the plan to establish RERA did shake the confidence of investors regarding real estate investment in Pakistan. Nonetheless, the government sustaining the interest of investors will be an important factor for the Pakistan real estate market in 2022.

Purchasing Power Of A Common Man

Moreover, one factor that can pace-up the real estate market in Pakistan lies within the purchasing power of a common man. As a matter of fact, the majority of Pakistan’s society comprises middle class groups. Hence, variation in the purchasing power of masses can majorly affect the Pakistan real estate market in 2022.

Encouragement To REITs

REITs will encourage small investors to take part in the real estate business in Pakistan
REITs will encourage small investors to take part in the real estate business in Pakistan

Not new to the world but quite contemporary to the housing business in Pakistan. The Real Estate Investment Trust (RIET) is an opportunity for the individual investors to earn huge dividends from the industry. There should be encouragement to people having a low investment budget to participate in the real estate business in Pakistan. As a result. it can affect positively for the Pakistan real estate market in 2022. Lately, Pakistan is welcoming REITs which is a good sign for the real estate market of Pakistan in 2022.

New Wave Of COVID-19

Even though this factor is not pretty traditional, it is expected to affect the Pakistan real estate market in 2022. For instance, similar to what happened in 2020-21, Coronavirus (COVID-19) can arrive anywhere like an angel of death. However, the worst thing is, no one can resist its will. So, we can only hope Omicron Variant and the variants we don’t know will stay away from real estate business in Pakistan.

With that being said, we conclude our detailed report on the Forecast of Pakistan Real Estate Market in 2022. Furthermore, keep investing money in lucrative projects because once a wise man said; ‘Money makes Money’. Meanwhile, the future of the Pakistan real estate market in 2022 is expected to be progressive and successful.

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