The real estate sector in Pakistan has experienced ebbs and flows throughout the last three decades, marked by steady growth punctuated by periods of uncertainty. The most recent downturn occurred in mid-2022, coinciding with a change in government. In the aftermath, economic instability and inflation impacted the real estate market, deterring both local and overseas investments.
As 2024 unfolds, stakeholders in the property sector, including developers, consultants, marketers, investors, and potential customers, are keenly observing the trajectory of real estate in the coming year. The prevailing economic conditions, political stability, and various other factors play pivotal roles in shaping the future of the real estate landscape.
The Ongoing Condition of the Property Sector
The last 18 months have seen a significant downturn in Pakistan’s real estate sector, largely attributed to the economic crisis following political instability. Overseas investments dwindled as uncertainty gripped investors, leading to a cautious approach. However, this downturn is not considered permanent, and optimism prevails that the sector will regain strength as political stability is restored and the economy rebounds.
Insights into the Real Estate Sector in 2024
Impact of the General Elections
The upcoming general elections hold substantial importance for the real estate sector. A new government, regardless of the political party, is expected to prioritize the revival of the property sector. The demand for affordable housing is a key concern, and elected officials are likely to address this issue to stimulate both local and overseas investments.
Betterment of the Economy
The economic conditions, acknowledged as among the worst in history, necessitate a concerted effort for improvement. As the economy strengthens, the purchasing power of investors and the public is expected to rise, potentially leading to increased activity and betterment in the real estate sector.
Impact of Budget 2024
The budget for 2024 holds promise for the revival of the real estate sector. Reserved funds for improving the property sector and introducing new housing projects, such as the “Naya Pakistan Housing Scheme,” are anticipated. Special incentives may also be introduced to encourage both local and overseas investments.
Overseas Investments
Current conditions may not be conducive for overseas Pakistanis to invest in real estate in the country. However, with a stable government in place, overseas investments are expected to rise, restoring the trust of the overseas community and contributing to the sector’s growth in 2024.
Tax Policies
Anticipated tax reforms and relief, especially in the real estate sector, could have a significant impact. Previous increases in taxes may be revisited to enhance the buying power of investors, providing a positive influence on the real estate sector.
Investments in the Real Estate Sector in 2024
The Long-Term Investment Approach
Adopting a long-term investment approach is advisable during periods of real estate downturns. Shifting perspectives and embracing patience can lead to greater returns in the future. Investments with a minimum duration of 5 years and ideally more than 5 to 10 years are recommended.
Wise Selection of Projects for Investments
Careful consideration of projects for long-term investments is crucial. While current performance is important, evaluating past performance and future growth potential is equally essential. Researching and selecting projects based on their historical success and prospects can lead to prudent investment decisions.
Some Projects for Investments in 2024
- One Canal Road – Lahore
- One Serene Residences – Islamabad
- Amaya Residences – Islamabad
Understanding the Election Impact
The impact of general elections on the real estate sector is significant. While general elections can be a game-changer, investors are advised not to be blind trusters. Researching and analyzing the policies of the winning party and adjusting investment strategies accordingly is crucial.
Golden Period to Make Assets
Amidst positive and negative impacts on the real estate sector in 2024, the current market conditions present a golden opportunity for investments. With a slow market and affordable property prices due to increased sellers and decreased buyers, investors are encouraged to acquire assets for future profit potential.
Conclusion
As 2024 unfolds, there is a sense of cautious optimism for Pakistan’s real estate sector. While the sector has faced challenges in the past 18 months, events such as the general elections, budget 2024, and potential tax reforms signal positive developments. Stakeholders are advised to stay informed, adapt their strategies to evolving events, and capitalize on the opportunities presented by the market.
