Ayesha Saba

Urbanisation in Pakistan is accelerating at an unprecedented rate, creating an immense demand for housing, yet the supply remains insufficient and largely unaffordable for lower- and middle-income groups.

Pakistan’s housing crisis can only be effectively addressed through smart housing solutions — integrating technology, sustainability, and affordability into urban planning. During an interview with WealthPK, Aymen Kamal, an urban development specialist at GIZ Pakistan, a leading German organisation, explained that the current housing deficit in Pakistan exceeds 10 million units, with demand continuously rising. “Traditional housing development models are no longer viable given the rapid rate of urbanisation.

What Pakistan needs is a transition toward smart housing solutions that maximise space, incorporate technology, and ensure sustainability,” she asserted. She said that one of the biggest challenges is the unplanned expansion of cities, leading to congestion, inefficiencies and environmental degradation. She suggested that vertical housing developments, integrated with smart infrastructure, could be a crucial solution.

“Affordability is a key aspect of smart housing, yet it remains a significant challenge for Pakistan,” she said, highlighting that soaring property prices and construction costs have made homeownership increasingly unattainable for most people. “We need innovative financing models, such as mortgage-backed securities and rent-to-own schemes, to make housing more accessible,” she suggested.

“Moreover, government-backed incentives for low-cost housing projects, similar to successful models in countries like Turkey and Malaysia, could help bridge the affordability gap.” Aymen believed that Pakistan must embrace green construction technologies to make urban expansion more liveable. “Smart housing is not just about digitisation; it’s about integrating eco-friendly materials, solar energy, and efficient water management systems,” she explained.

“Technology-driven solutions, such as smart homes equipped with energy-efficient appliances, automated security, and AI-powered utilities, can further improve urban living,” Aymen said. However, she cautioned that Pakistan should focus on developing cost-effective, locally-produced smart housing technologies that align with the income levels of its urban dwellers.

The urban development specialist emphasised the need for public-private partnerships to prioritise affordable housing over speculation, alongside streamlined approvals, better land-use policies, and investments in mass transit. Pakistan’s urbanisation surge necessitates immediate attention to housing challenges. With a robust policy framework, investment in technology, and strategic urban planning, Pakistan can not only manage its housing crisis but also create thriving, well-planned cities for its growing urban population.

Credit: INP-WealthPk