The outbreak of coronavirus infection (COVID19) has had a major impact on the world and Pakistan. The real estate market is very supportive of Pakistan’s economy. Not only Pakistani investors but also foreign investors understand the potential of this market and want to invest here. One of the many main reasons foreign investors invest in this real estate industry is the stability of the social situation and environmental safety. The main victims of COVID-19 were small and medium-sized enterprises (MSMEs). The real estate industry was also under thick and thin circumstances, which has been flourishing for several years. You should invest in Capital Smart City.
Before COVID-19
The real estate sector is among the country’s most significant and developing industries. Before covid-19, Pakistan spends about US $ 5.2 billion on construction and infrastructure. It results in strong growth in the real estate market.
Naya Pakistan housing program was started that grabbed the attention of many middle- and lower-class people. Because of it, there was a positive development in the real estate sector. There was the withdrawal of the ban on high-rise building construction in Karachi.
At that time, Pakistan’s real estate market was stable, with a slight increase in value due to the new government’s inauguration. The property show was also a successful event that effectively created a platform for global exposure to the Pakistani real estate market.
Impact Of COVID-19
Different real estate companies were under clouds by the infection to varying degrees. The surge in inquiries was evident in the retail and hospitality sectors. At the same time, business expansion and delays in migration plans harmed office properties. The economies of different countries were facing severe inventory declines. The real estate industry also faced dark times, like realtors in Islamabad, Karachi, and Lahore.
But, during coronavirus-induced disasters, several private developers came forward to announce residential projects to meet the new demand of potential property buyers. However, the third wave comes with ease of relief for the real estate industry.
Development After Covid-19
There is no doubt that the pandemic was very devastating to the global economy, as it kept the whole world in their homes. So far, great damage continues, as no one knows when the crisis will end. But even in that catastrophic situation, Pakistan’s real estate industry brings a faint light of hope and optimism.
During the last two months of 2020, an outlay of the property starts stabilizing. However, the Government of Pakistan continues the construction relief package that began on December 31, 2020. An announcement about the continual construction relief package brought back the positive rhythm, increasing the property prices again. However, there has been a remarkable boom in the real estate industry after the third wave of covid-19. Read more about Lahore Smart City.
Appreciation of the prices in the real estate sector
After the pandemic, the reason for an increment of real estate properties is as follows
- With the implementation of the amnesty program by the Government of Pakistan, the real estate and construction industry is escalating quickly. Investor affordability has also improved as taxes, and interest rates have been reduced. These investors have begun investing in this sector again. Former investors and many new people have started investing in real estate.
- The current Pakistani Government’s Naya Pakistan Housing Scheme is valid only until March 31, 2023. Due to the limited opportunities, investors want to invest in getting the most out of this housing scheme. Because of this constraint, investors are currently investing to enjoy the benefits of this housing scheme. Of course, this has raised the price of real estate across the country.
- The Federal Revenue Service (FBR) has recorded 186 billion rupees worth of development projects nationwide, but 116 billion rupees worth of projects have not yet been registered. A project worth Rs 163 billion has already begun in Punjab.
- In addition, development activities have begun in Sindh, KPK, and Baluchistan. These stimuli are expected to generate jobs and more employment opportunities. Punjab alone is generating Rs. One hundred fifty billion worth of economic activity and creany purposes. But lately, gold has also faced a very volatile market. It scares many investors because they think it’s not the time to invest in gold safely. Their investment is now towards Pakistani real estate. Consequently, increasing the growth of the real estate sector.
- Also, stock market investments are highly risky. The market is very unpredictable, and one needs to decide whether to sell or buy more
- ating 250,000 jobs across Pakistan.
- Many people prefer to invest in gold because it serves m
- stock in seconds. It is not a safe investment for many investors who do not want to take undue risk. Because of this hassle, many people turn the direction of their investments towards real estate.
Final Thoughts
The following article sheds light on the development and other important initiatives after COVID-19. No doubt COVID-19 was a whole disaster for every industry. It shattered the progress and made people and companies start from scratch. However, the real estate industry manages to outlive. By now, it is progressing and playing a vital role in the economy of Pakistan. do you want to read more about Kingdom Valley Islamabad?
Author Bio
Alina Naveed is a passionate writer, curious to learn new writing skills. Gaining experience in writing articles and blogs at sigma properties as a Jr. Content Writer.
