Ayesha Saba

Vertical development, as a strategic urban planning approach, holds significant promise in addressing Pakistan's pressing crisis of affordable housing, said Assistant Executive Director of Naya Pakistan Housing and Development Authority (Naphda) Asad Ullah in an interview with WealthPK. The previous governments and administrations placed significant emphasis on vertical development initiatives. Notably, a considerable number of government apartments, particularly in sectors such as G-7, were constructed to accommodate a substantial segment of population, particularly government employees. Some time ago, the High Court directed the authorities to focus on vertical development and construction. Recently, the caretaker government issued a formal call for proposals concerning vertical development initiatives. “Notably, the Capital Development Authority (CDA) has historically allocated plots to its employees as per the established policies. However, the practice of plot allocation implies that on a given 100-acre parcel, only a limited number, typically ranging from 10 to 15 thousand employees, can be accommodated,” he added.

“Conversely, the exploration of vertical development strategies suggests a more efficient utilization of available space. For instance, construction of four towers on the same 100-acre plot can potentially provide housing facilities for a significantly larger number of employees,” he maintained. He shared his concern that the major barrier to implementing the vertical development initiatives across various housing societies was the limited availability of high funds. “The prevailing economic conditions pose significant challenges, as substantial funds are not readily accessible. Additionally, reliance on the IMF assistance has further complicated matters due to the stringent conditions attached to such financial support. These conditions precluded the option of utilizing funds for subsidies or allocating them in a manner conducive to such development projects,” he cautioned. He also highlighted the lack of focus on coherent policy development within the government framework. Currently, efforts to launch new initiatives face significant challenges amidst a demanding economic environment.

As a result, obtaining the required support and guidance for innovative projects has become increasingly arduous. To encourage vertical infrastructure, the CDA has decided that 2,000 apartments in Farash Town, Islamabad, will be allocated through the Naphda, and an agreement between the CDA and NAPHDA is expected to be signed soon. According to Khawaja Umair Mumtaz, the Marketing Head of Rawaha Real Estate and Builders, several factors are driving the high-rise construction boom in major cities like Karachi, Lahore, and Islamabad, including fast urbanization, rising population, and limited land availability for housing. He suggested that providing tax incentives for sustainability-focused or affordable housing projects could boost interest in vertical development. Additionally, he underscored the importance of ensuring that these developments are resilient to environmental risks and economically viable.

INP: Credit: INP-WealthPk