What needs to be done to make the real estate sector attractive to investors? The real estate sector has been in the spotlight for the past few months, with the government promoting it as a growth engine. The business is also considered as having the potential to draw investment from both domestic and foreign investors, particularly Pakistanis living abroad.
To increase openness and accountability, as well as investor confidence, the government implemented a one-window operation and digitalization of real estate data. The government intended to create special tribunals for real estate issues so that rulings could be made easily in case of a property dispute.
The real estate players face the most difficult issue which is to convince individuals that their investment is safe, will generate high profits and will be free of litigation and multiple ownerships claims.
They are frequently forced to invest in ‘dead’ investments that do not produce dividends despite the passage of time. Litigation and court case burden investors, particularly those who are based outside of Pakistan and cannot return frequently to contest them.
Why may a Pakistani living abroad or a foreign investor be attracted to invest in the sector?
Many other types of claims are heard about, which are often frivolous and waste the property owners’ money, energy, and time.
Foreign investment will not be attracted unless this sector is free of such dangers. This is especially true now that the federal government has launched a new Blue Area project in Islamabad worth billions of dollars.
Expecting the requisite capital to be generated within the country in the face of a slowing economy is an overly optimistic approach.
The most crucial thing is that real estate data be digitalized and made available to prospective investors. When the disparate data and information is combined, it will help people in understanding the actual value of real estate assets, particularly commercial ones, in planned regions.
Is Pakistan good for investment?
Pakistan has the potential to become a top real estate investment destination due to its high housing demand. According to conservative estimates, the housing backlog is at 9 million units, and it is growing at a rate of 300,000 units per year due to inefficiencies.
Aside from digitalization, there are a number of additional challenges that must be addressed. But For one thing, real estate regulation is relatively weak; there are no penalties for individuals who engage in frivolous lawsuits. Real estate-related legal cases take a long time to resolve.
People are misinformed, and they listen to the advice of real estate agents who are inexperienced. Many times, concerned government officials argue that such housing societies are illegal years after residents have purchased plots and constructed structures.
What needs to be done?
How to make the real estate sector attractive to investors? It is necessary to update the laws. Real estate education should include credentials and degrees. Real estate cases should be handled quickly, and individuals who engage in unnecessary litigation should be punished.
To create a deterrent, those who have been mistreated should be compensated by the former. The government’s plans to establish special tribunals, as mentioned above, is a positive move, but more is needed to deter property fraud at the outset.
This can be accomplished by establishing a team of
- Glass manufacture
- wood
- steel
- furniture
- paint
- plastics
- power cables
- cements
electronics and other industries are all intimately related to real estate.
As a result, a rise in building activity will almost certainly result in more jobs and economic activity.
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