Karachi, Pakistan: Pakistan’s real estate sector, once one of the most lucrative industries in the country, is facing a slowdown due to a combination of economic challenges, including high inflation, rising interest rates, and a lack of investor confidence. The market, which had seen rapid growth in the past decade, has now entered a period of stagnation, with property prices seeing a slight decline in major cities such as Karachi, Lahore, and Islamabad.
The construction industry, which is closely tied to real estate, is also feeling the strain. With increasing costs for construction materials and labor, developers are finding it increasingly difficult to deliver projects within their budget, leading to delays and cancellations of several large-scale real estate ventures.
One of the main concerns for investors is the growing uncertainty surrounding property taxation and land ownership laws. The government’s plans to introduce new taxes on real estate transactions and the lack of clear property ownership regulations have further dampened investor sentiment.
Despite the current downturn, some experts believe that the real estate market will recover once the country’s economic situation stabilizes. In the long term, the demand for housing in urban centers is expected to remain strong, particularly due to Pakistan’s growing population and increasing urbanization.