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Pakistan Real Estate Forecast 2021

Pakistan Real Estate Forecast 2021: Threats and Opportunities

It’s no mystery that Pakistan’s real estate sector is the driving force behind the country’s economy. Through various surveys and polls, we have discerned that the majority of the country’s citizens prefer to store most of their wealth in land assets. Since land ownership is a big deal in the country, our skillful real estate specialists have decided to develop a Pakistan Real Estate Forecast for the year 2021. This forecast will account for the threats and opportunities present in the real estate market in Pakistan.

Potential Threats

Potential Threats
Pakistan Real Estate Forecast 2021: Threats and Opportunities

The year 2020-21 hasn’t been kind to anyone. Economies have collapsed and many people have lost their lives. To most people, it might not seem like the best time to be investing in anything— they have bigger things to focus on like surviving! Below are some factors that deter people from investing.

Debt to GDP Ratio

Debt to GDP Ratio
Pakistan Real Estate Forecast 2021: Threats and Opportunities

A country’s debt to GDP ratio refers to the measure of the nation’s public debt to its GDP. A lower ratio is indicative of the fact that the products and services produced by the country are sufficient in paying back any debts owed. Having a high debt to GDP ratio means the contrary.

Pakistan’s debt to GDP ratio is at an all-time high. In the past, we have seen dips in the ratio when the real estate market is in a boom. The idea is that the ratio and the economic climate go hand-in-hand. Currently, our debt to GDP ratio is 86% which gives you an appropriate picture of the real estate market in Pakistan.

Economic Downturn

economic downturn
Pakistan Real Estate Forecast 2021: Threats and Opportunities

Our economy is in free fall. Especially having dealt with COVID-19 and the cloud of economic uncertainty it brought with it. According to statistics provided by the IMF, the Pakistani economy suffered a 1.5 % hit in the year 2020-21. Moreover, according to government statistics, the real GDP declined by 4.5%.

It’ll take a while to recover from this economic downturn. These two points might not show the Pakistan Real Estate Forecast in a favorable light, but you’ll find below reasons to keep investing in the market and have high hopes for the future.

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Potential Opportunities According to the Pakistan Real Estate Forecast

potential opportunities according to Pakistan Real Estate Forecast
Pakistan Real Estate Forecast 2021: Threats and Opportunities

Next, this Pakistan Real Estate Forecast is exploring the potential economic opportunities in this fruitful economic sector. Below you’ll find things to take advantage of such as increased employment opportunities, access to finance as well as higher incomes.  

Growing Employment Opportunities

growing employment opportunities
Pakistan Real Estate Forecast 2021: Threats and Opportunities

While the Pakistani economy found itself in a rut amidst the pandemic, we have been making a comeback and there are more employment opportunities now than a year ago. Much like our company, Makeen Marketing, many people have opened up their own businesses. New businesses need real estate. According to our Pakistan Real Estate Forecast, right now might be a good time to invest in commercial property such as office buildings and manufacturing plants.

Read: Lahore Smart City Commercial Plots to Hit the Market in 2021.

Continued Access to Financing

Real estate forecast: continued access to financing
Pakistan Real Estate Forecast 2021: Threats and Opportunities

The financial environment is quite supportive of commercial land investments in Pakistan. Many factors point towards this confidence. Low-interest rates, a growing population, and thus a greater demand for apartment units, as well as foreign investors and an influx of foreigners looking to settle in Pakistan.

Rising Incomes

rising incomes
Pakistan Real Estate Forecast 2021: Threats and Opportunities

Recently, an article published by Dawn News stated that there will be a 25% rise in the salaries of government employees. This is just one example of the ways in which incomes of the working people are set to be raised across the board— as the economy begins to recover from the pandemic.

Since most of us Pakistanis store our wealth into land assets, a boost in paychecks will most likely drive demand for real estate.

While it might seem like the economic climate isn’t ripe for investment, there are more than a few things to be hopeful about. Tracking the trajectory of rising incomes, continued access to financing, as well as growing employment opportunities, we can see that investing in the real estate market in Pakistan poses more opportunities than they do threats.

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