The Pakistan property market has been on an upward trend for the past decade due to the strong performance of the gross domestic product (GDP) since 2005; averaging at a rate of 5% a year. With a population of nearly 200 million people the concentration of economic activity is limited to three major cities: Karachi, Lahore, and Islamabad.
Every year 3.7 million people are born in Pakistan, and there is simply not enough houses being built. Currently, the housing demand is estimated to be over 9 million units with is growing at a rate of 0.7 million new units per year. By 2025, the net demand is predicted to reach 20 million residential units. This depicts a huge potential in the real state sector.
Pakistan is now primed for foreign investment in real estate. Work has already begun on the $51.5 billion China-Pakistan Economic Corridor and the benefits will flow to the real estate industry. The country offers a high potential return on investment for foreign investors looking to diversify. As the new tax laws make the real estate market more transparent and regulated, overseas investors will continue to pay close attention.