The skyline of Pakistan’s major cities is currently one of modern high and medium buildings. The rapid demand and development of luxury residential towers and commercial skyscrapers essentially reflects the passing of the times when living in a separate house was considered a sign of prestige and honor. Are real estate in Pakistan changing from plots to tall buildings? let’s discuss it today.
Over time, the construction of mixed-use and residential buildings has increased dramatically in the metropolises. These skyscrapers and residential towers not only enhance the beauty of outdoor buildings throughout the city but also offer all the modern amenities and facilities.
If we delve deeper to find the cause of this change in real estate trend, we will find that there are many reasons behind this sharp demand for high developments in Pakistan. The first and most important reason is the rapid growth of the population in urban areas. The massive influx of people migrating from rural areas to urban centers has forced developers and investors to focus up construction. The lack of land and high prices are some of the key factors behind the real estate investment shift from plots to high and medium towers. The government has also taken strict steps to prevent the horizontal expansion of major cities to prevent any urban sprawl, which is yet another factor that has contributed to this trend.
Demand for Housing and Houses
If we look at the statistics of just the past two years, we can say that the demand for houses and apartments in Pakistan has grown en masse.
The rough analysis of the user records reflects the demand for plots in Federal Capital Islamabad fell from 26% in 2018 to 21% in 2020. Over the same period, the demand for apartments is growing from 15% to 17%.
A similar pattern has been observed in other regions of the country as well. For example, if we look at Punjab’s statistics, the demand for plots has fallen to 20% in 2020 from 22% in 2018. However, the demand for apartments rises from 15% in 2018 to 17% in 2020.
Real estate in Sindh has also shown a more or less similar trend. Where the demand for plots decreases from 15% to 12% and demand for housing has increased from 23% to 25% over the course of two years.
Real estate trends in KPK have also shown a decrease in the demand for plots from 22% to 20% and an increase in the popularity of housing from 17% to 19%.
The Recent Trends of Real Estate Market
The growing trend of high development in the country has attracted the attention of real estate investors as well as developers. At present, about 85% of newly launched projects consist of high-quality housing complexes, while the remaining 15% of the newly launched mixed-use and residential projects in major cities have plots for sale.
Considering the demand for apartments and houses, some of the most prestigious builders and apartments have started launching villas, town halls, marquees and apartments. Easy delivery plans have been introduced to attract more buyers.
Loans, Mortgages and Construction Financing
The government is also working to facilitate home loans for investors. Commercial banks have also been instructed to use 5% of their total lending to finance housing while the State Bank of Pakistan has also introduced steps to encourage construction financing to developers.
The government is trying to develop a mortgage financial structure in Pakistan. It has reduced the tax on bank income generated by cheap housing finance from 39% to 20%. This will serve as an incentive for banks to provide mortgage and home loans to middle and low income earners.
Pakistan Naya Housing Program (NPHP) has also launched a plan for home loan purchases at lower markup.
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How This Change In Real Estate Trend Affects The General Sector
The growing demand for high and medium construction is directly proportional to the construction activities in the real estate sector. This will result in generating more job opportunities and more economic growth for the country. This will also grow the trade of hundreds of industries associated with the construction sector.
Additionally, the development of high and medium buildings is a realistic solution to deal with urbanization with a smaller plot of land. Horizontal expansions of cities not only cause urban sprawl but also cause the disappearance of agricultural land, threatening natural resources and environmental peace. From that perspective, we can say that vertical expansion reduces these problems by a significant margin.
Another effect of the real estate investment trend of plots to high towers is that this practice allows investors to raise capital gains and enjoy rental income as opposed to plots.
However, Urbanization is still the biggest factor that has caused the vertical expansion of cities. The need to accommodate the massive influx of people in major metropolises has led the government and builders to choose tall buildings to serve the purpose.
Considering the aspects we discussed above, we can conclude that this shift from real estate trends from plots to medium and tall buildings will not only benefit the construction company across the country but will also provide an affordable living option for people who want to settle in. urban cities. areas.