What is Real Estate? This is the first question that pops up into the mind of a person on hearing this word.
A simple answer to this query would be that Real Estate refers to some property comprising up of lands and buildings upon this land. Such land must be surrounded by some necessaries that we commonly call natural resources. These resources include water, trees, minerals, and security, etc.
Real estate in Pakistan is widely divided into the following categories
- Commercial Real Estate
- Raw land
- Special use
What is the Difference Between Plots and Apartments
Another question that pops up is what is the difference between flats and plots? A flat or an apartment is the space that occupies generally one story of a building. In such a building, different people live in flats according to their income status whereas a plot is a piece of land owned by someone for residential or commercial use.
One of the rising sectors of Pakistan’s economy is real estate. The construction covers 2% of Pakistan’s GDP in accordance with the data provided by the Pakistan Bureau of Statistics (PBS). Going back to the history of real estate in Pakistan, there was a massive increment in the demand for residential properties in Pakistan.
This proved to be the center of attraction for all the investors and real estate agencies. In such a situation, the government of Pakistan took immediate steps. In 2012, The Government declared the decrement on the interest rates on the mortgage loan. According to the recommendations of the Prime Minister of the Islamic Republic of Pakistan, the Real Estate Regulatory Authority must be formed to regulate real estate in Pakistan.
COVID-19 and Policies by the Government to Tackle the Situation:
Pakistan is the 12th country in the world that faced a critical strike by coronavirus pandemic. The impact of COVID-19 has been critical for the growing economy of Pakistan. Under the precautionary measures taken by Pakistan, the first hit was on the airline industry around the globe there were restrictions and the airlines had to be closed with immediate effect. Then the government announced travel bans, markets were majorly closed, and the next in line was the educational sector of Pakistan.
All the schools, colleges, and universities were closed throughout the country. The country’s first initial action by laying off its employees which led to the downsizing of the workforce. This posed a very dangerous threat to the economy of the country and caused unemployment. This is a challenging time for the real estate business in Pakistan.
Rise of Pakistan’s Construction Sector
The Construction Sector was heavily affected by this pandemic. To fight against the effects of this pandemic and to flourish the economy and reduce unemployment, Imran Khan the Prime Minister of the Islamic Republic of Pakistan, recently decreased the taxes on real estate. This step would reduce unemployment and will smoothen the money flow in the country’s economy.
This would serve as a relief package to fight this global pandemic. The focus of Pakistan Tehreek-e-Insaaf (PTI) nowadays is towards the real estate and construction industry in Pakistan. The reduction in tax was done to mobilize new investments towards this sector. These industries will hence create job opportunities for the citizens of this country. The government announced a 25% decrement on CGT on the sale of the property every year.
Naya Pakistan Housing Authority:
The government has declared a subsidy of PKR 30 Billion to Naya Pakistan Housing Authority to provide the people of low-income segment houses at a lower price. One of the most premium products that Pakistan Tehreek-e-Insaaf has introduced is Naya Pakistan Housing Authority. This will boost up the economy growth, provide homes from the homeless and new job opportunities for the youth.
This project was initialized for economic growth as well as the population growth in Pakistan. According to recent research, Pakistan’s population will increase by 50% in the year 2025. The government has recognized the fact that one of the basic needs of a human being is the need for shelter. To fulfill this, need this project has been introduced. This project is initiated in Punjab, Sindh, Khyber Pakhtunkhwa, Baluchistan, Gilgit Baltistan, and Azad Kashmir.
Blue World City and Naya Pakistan
Blue World City is the newly established project by PM Imran Khan. The society is located near to the approved Rawalpindi Ring Road. It is a massive project initiated by a joint venture between Pakistan and China. This city is going to provide 50,000 apartments to the public under the Naya Pakistan Housing Project.
It is a hot topic nowadays and is one of the major attractions for Real Estate businesses. One of the most prominent companies marketing this new project is Makeen Marketing Pvt Ltd. Makeen Marketing Pvt Ltd is one of the topmost Real Estate businesses in the twin cities.