Mansoor Sadiq

The real estate sector of Pakistan has the potential to overcome the economic woes of the country provided it is regulated and developed in a planned manner, according to a representative of a developers’ body. Talking to WealthPK, Babar Bhatti, vice-president of Islamabad Estate Agents Association, said that solution to economic problems lied in development of the construction and real estate sector to strengthen the allied industries as well generate employment opportunities.

According to State Bank of Pakistan, the real estate sector contributes around 2% of the country’s GDP with an estimated value of Rs5.2 trillion ($32 billion). It is one of the largest and fastest growing sectors of the economy. Babar Bhatti said the prevailing economic meltdown and political uncertainties had also taken a heavy toll on the real estate, particularly the construction sector, as cost of construction material had skyrocketed.

Rizwan Alam from Sky Marketing, Islamabad, told WealthPK that political unrest had impacted the business environment in the country. “Sale and purchase of plots and the resultant construction activities have stalled as there have been very few buyers in the market. Owing to escalated construction costs, work on all major housing projects, particularly in Rawalpindi and Islamabad, has come to a halt.”

Rizwan Alam linked the revival of the real estate and construction sectors to political stability. He also stated that it was not the right time to sell properties amid the prevailing uncertain political and economic situation, as some were suggesting, and advised the people to wait for an opportune time to sell their immovable assets. Talking about loopholes in the real estate sector in Pakistan, Rizwan pointed out the sector was more or less unregulated despite some moves at the official level to regulate it and bring it under the tax net. “Malpractices are rampant in the sector, which can only be done away with if the government comes up with an effective mechanism to ensure that the sector is brough under the tax net. By this way we can realise the growth potential of this sector.”

Rizwan Alam called for focusing on vertical constructions keeping in view the rapid urbanisation. “With expansion of urban areas, the demand for affordable houses keeps on rising, providing opportunities for developers to invest in affordable housing projects.” He asked the government to start smart city projects to boost the construction activity. Rizwan Alam also urged the government to ensure a business-friendly environment in the country to attract foreign investment.

Credit: Independent News Pakistan-WealthPk