Demand for houses in Pakistan will increase because…
Referring to the current shortage and demand, the property developers and industry experts forecast a spike in the demand for houses in Pakistan from 1.07 million units per year in 2020 to 1.24 million in 2025 and mostly in the urban areas. There are numerous reasons behind this rise such as there is an influx of migrants moving from rural areas of Pakistan to the cities in search of better employment opportunities and improved lifestyle. Secondly, to combat the shortage of housing units, the government has come forward and announced to provide loans under its low-cost housing scheme to bridge the gap between the demand and supply of housing units in the country.
Low-cost housing units…
It is a commendable step of the current government because more than 50 percent of the demand for new houses in Pakistan come from the lower-income groups, who are otherwise, forced to live in informal shelters and housing units such as families living in one house from generations, in cramped spaces or slums. On the contrary, private developers keep introducing new housing projects from time to time in order to meet middle and upper-class demands regarding high-quality houses in Pakistan complemented with premium facilities and amenities.
Housing shortage – an opportunity in disguise
The industry specialists and real estate experts at HomesPakistan believe that the housing units crisis is a huge opportunity for the developers – especially, if they take on the challenge to launch housing projects for the low-income group. Majority of the population migrating from rural areas to urban places, move to attain a better lifestyle, which on other hand adds more to the housing crunch.
However, if handled wisely the crisis can move towards a solution, where the government will come forward to provide incentives to such developers and help them by removing regulatory barriers and providing long-term solutions, strong infrastructure, urban planning, policies and reforms to improve the sector. And real estate developers come forward and announce low-cost housing projects, which can further be financed through government banks, financial institutions and leasing companies.
What role does government play?
The government of Pakistan has announced a subsidy of PKR30 billion for the Naya Pakistan Housing Development Authority to build houses in Pakistan that will cater to lower-income group. It has already released PKR3.35 billion to construct more than 7,000 housing units across Pakistan. Moreover, the government announced tax relief to the construction sector by labelling it as an industry that will play its humongous role in uplifting Pakistan real estate sector. Besides that, the government has also declared deregulation of the industry, reforms in building by-laws, reduction in capital gains tax, and reduction of sales tax on construction material. These reforms will not just directly benefit the developers and constructers but help flourish the allied industries such as cement, steel and aluminum.
With everything said and done it is of the utmost importance that the government and private sector work hand in hand in helping us get rid of the menace that is this problem.