US investor sees Pakistan’s real estate as ‘sleeping giant’ ready to awaken

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KARACHI: Pakistan is preparing to emerge as a regional property investment center, adopting key measures such as digital land records, title insurance, provincial reality regulators and Special Economic Zones (SEZs), while ensuring permanent policy and governance, according to a permanent policy and governance.

After agriculture, the property in Pakistan is the second largest sector for the production of unmanaged market employment, and plays a vital role in advancing economic growth by mobilizing demand in various industries.

According to a report by the House Building Finance Company, Pakistan’s construction sector – which is an important component of the economy – supports more than 2.5 % in GDP. The real estate sector, worth more than $ 1 trillion, improves other major sectors within the economy. This sector is not only important for economic growth but also to tackle Pakistan’s housing crisis.

“Pakistan’s original property sector is really a major part of a sleep, but many systemic challenges limit its growth,” Dr. Anush Ahmed, a leading investor from Dubai and the United States, said in a written response to news questions.

Ahmed said, “First, there is a shortage of transparency and clear land ownership records, which discourage the institutional and foreign investors. Second, contradictory rules and regulations in the provinces create hurdle in large -scale development.”

He said that the financial support powers are limited, and the mortgage is lower than the regional standards. In many areas, the absence of reliable zoning laws and master projects leads to non -planned urban proliferation, which reduces investors’ confidence.

He added, “Finally, political instability and currency’s depression increases the risk of further understanding. To unlock its capacity, Pakistan will have to implement structural reforms that ensure transparency, legal explanation and the protection of investors.”

In the United States, Ahmed’s property incorporated portfolio includes multi -family residential progress, commercial property and health property. In Dubai, its focus is on high -end residential and mixed use progress, especially in the free -hold zone that attracts international investors. According to him, both markets are strong but different. The United States offers long -term stability, structural financing and strong regulatory concerns. Dubai offers rapid growth and high profits, though it has a bit more fluctuating. “The diversity between these markets allows us to balance the risk and opportunities,” he said.

Over the past decade, Pakistan has attracted various foreign investment for development projects. However, this arrival has slowed for several reasons. According to Central Bank data, foreign direct investment (FDI) reduced the year 45 % (YOY) in February.

However, for the period from July to February this fiscal, the FDI increased by 41 %, with a total of $ 1.618 billion.

The construction sector received a net FDI of $ 25.8 million from July to February 25, while during the same period last year, 3 compared to 18.3 million.

Ahmed said that to attract foreign investment, Pakistan needs to adopt a multi -faceted approach. First, introduce digital land record system and title insurance to create confidence and reduce fraud. Second, establish real estate regulatory authorities in each province, like a reera from Dubai [Real Estate Regulatory Agency]He said, to monitor compliance and protect investors.

According to him, creating SEZS with the approval process and tax concessions for foreign developers can also increase interest. Encouraging public private partnerships in housing and infrastructure is another way to attract long -term foreign capital.

Ahmed said, “The biggest challenge will be consistency in policy and governance. Investors look for predictions, and repeated regulatory changes or political obstacles damages confidence. Solving these basic issues can transform Pakistan into a regional investment center in real estate.” The Association of Builders and the Developers of Pakistan (ABAD) acknowledged the importance of the Special Investment Facility Council (SIFC) in attracting foreign investment in the country’s property sector.

Abdul Syed Afzal’s senior vice -chairman said that while SIFC aims to attract FDI to key sectors like agriculture, livestock, IT and telecommunications, and mining, the construction sector has not been included in the list. He emphasized that foreign investors need official confidence and consistency in real estate and construction sectors, especially about privileges and taxes.

Hamid noted that Pakistan’s property market has been restored and has seen local investors investment in the last two months thanks to improvement in economic stability. Although this investment is growing slowly, low interest rates and inflation have encouraged investors and rescuers to provide money in the real estate sector to buy property. However, major investors have preferred to invest in Dubai in the last two to three years.