As we look ahead to 2023, the real estate market in Pakistan is expected to continue on its growth trajectory, driven by a growing population, urbanization, and increasing demand for affordable housing. In this blog, we will provide a forecast of the real estate market in Pakistan in 2023, supported by key statistics.
Property Prices:
Despite the government’s efforts to promote affordable housing, property prices are expected to continue to rise in 2023. According to a report by the State Bank of Pakistan, the average property prices in major cities like Karachi, Lahore, and Islamabad are expected to increase by 6% to 8% in 2023. The demand for affordable housing will remain high, and investors are likely to invest in rental properties as an alternative to buying a home.
Rental Yield:
The rental yield is expected to remain stable in 2023, with the highest rental yields expected in Lahore and Islamabad. According to Zameen.com, the rental yield in Lahore and Islamabad is expected to remain around 4.5% and 4%, respectively. This indicates that investing in rental properties in these cities can provide a good return on investment.
Real Estate Investment Trusts (REITs):
REITs are expected to continue to gain popularity among investors in 2023. According to a report by the Pakistan Stock Exchange, the net assets of REITs in Pakistan are expected to increase by 20% in 2023. This indicates that investors are likely to continue to invest in REITs as an alternative to investing directly in real estate.
Government Initiatives:
The government’s initiatives to promote affordable housing are expected to continue in 2023. The Naya Pakistan Housing Program is expected to play a significant role in providing affordable housing to low-income families. The government is also offering tax incentives to real estate developers to encourage them to invest in affordable housing projects. These initiatives are likely to continue to drive the growth of the real estate market in Pakistan.
Impact of COVID-19:
The impact of COVID-19 on the real estate market is expected to continue in 2023, with a shift in preferences towards homes with outdoor spaces and home offices. The pandemic has led to an increase in the demand for affordable housing, as many people are looking for more spacious homes in suburban areas. This trend is expected to continue in 2023, with developers expected to invest in suburban housing projects.
In conclusion, the real estate market in Pakistan is expected to continue on its growth trajectory in 2023, driven by a growing population, urbanization, and increasing demand for affordable housing. Property prices are expected to rise, and investors are likely to invest in rental properties and REITs. The government’s initiatives to promote affordable housing are likely to continue, and the impact of COVID-19 on the real estate market is expected to continue with a shift in preferences towards affordable housing in suburban areas.