Pakistan’s real estate sector faces a significant challenge: a housing shortage of 10 million units, with half concentrated in urban areas. This pressing need presents a $40 billion investment opportunity, but attracting foreign capital requires innovative solutions.
Enter the Saudi Arabia model. Shafiq Akbar, CEO of Imarat Group, suggests learning from their approach:
- Mega projects: Instead of scattered developments, Saudi Arabia focuses on large-scale, planned projects encompassing tourism, heritage, and economic zones. This creates a branded destination with global appeal.
- Economic engines: These mega projects integrate features like industrial cities, tourist destinations, and educational/healthcare facilities, driving job creation and ultimately, housing demand.
Why can’t Pakistan replicate this success? We boast a larger population (241 million vs. 35 million) and an even higher per capita housing demand. By implementing these strategies, Pakistan could:
- Attract significant foreign investment: Currently, only $25 billion reaches the real estate sector, with a concerning portion trapped in “illegal” or “infeasible” projects.
- Unlock the potential of overseas investments: Remittances from overseas Pakistanis were historically channeled into real estate, but shrinking investment dampened this vital economic flow. A more attractive sector could revive this trend.
- Become a regional economic powerhouse: Akbar believes proper planning and execution could position Pakistan as the fastest growing economy globally.
Challenges remain: Streamlining regulations, improving transparency, and tackling “illegal” projects is crucial to fostering trust and attracting responsible foreign investors.
The path forward is clear: By drawing inspiration from successful models and addressing existing challenges, Pakistan can unlock its real estate potential, boost its economy, and address the critical housing shortage.
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