Pakistan Real Estate 2023

Pakistan Real Estate 2023 – Analysis, Forecast & Investment Options

The real estate industry is one of the major and fastest-growing industries in Pakistan. The country spends over $5 billion in construction work annually. Today, we are going to analyze the Pakistan real estate 2021. We will discuss and predict the performance of the real estate market considering the current situation and possible future events.Despite the fact that the real estate market is growing drastically in Pakistan, the country still lacks basic living facilities, i.e house with necessary living facilities. This fact indicates that there’s still wide room for growth in this sector so that people belonging to every class of income can afford a respectable living for themselves.

Pakistan Real Estate 2021 Investment And Budget 2020-21

The government believed that the budget they present is tax-free and this is a significant achievement amid the worst economic situation of the country. However, the opposition parties criticized the budget on charges that it could not handle the ongoing financial crisis.

The budget was said to be a big economic booster, but the boom will collapse ultimately and the real estate sector will continue to decline.

The freely falling Economy

The budget 2020-21 presented by the PTI government is merely paperwork far away from ground realities. As per IMF, Pakistan’s economy is expected to decline by 1.5 percent in 220-21, while the government’s estimate is up by 2.1 percent. If we consider the government’s inflation target of 6.5, the real GDP decline will be 4.5 percent.

COVID-19 and Locust Attack acted as the final nail in the coffin of Pakistan’s economy. Unstable border conditions are another misery to the economy. The unreliable political and economic situation is further discouraging people from investing in real estate.

The Record High Debt to GDP Ratio

The property market was enjoying a boom in 2003 and 2013. The debt-to-GDP ratio was declining during both boom periods. In 2003, the Debt to GDP ratio was 50 percent, while in 2013, it was 65 percent. However, the debt to GDP ratio is 86 percent at the moment and still rising. So, we don’t have high hopes about the prices of real estate in Pakistan at least in the near future.

Declining buying power; rare end-users in the market

The local Pakistani professionals, businessmen, and expatriates are the potential customers of the real estate market. However, the declining purchasing power of these local Pakistanis is one of the many concerns of the real estate sector. On the other hand, Gulf countries have passed a law asking private companies to reduce the salaries of overseas workers by 40%. By this ratio, the remittances in the year 2020-21 are expected to decrease by around $5 billion, the amount is equivalent to what the government required to build 1 LAC house. In simple words, bad days for our real estate will continue.

Economy & Future Of Real Estate Business In Pakistan

After 75 days of closure due to the COVID-19 lockdown, production throughout the country resumed in June. The country’s largest auto tire maker, General Tyre and Rubber Company posted that net sales increased by 42% in the first quarter of 2020 as compared to the 3.2 billion of last year for the same time. The growth in sales is also partially due to the government’s efforts to curb the illegal imports of tires.

The cement industry also posted significant growth in sales in the current year as monthly sales hit a record high in October 2020. The mills shipped 5.73 tonnes to consumers. The domestic consumption also increased by 15.8 percent to 4.85 million tonnes from 8.19 million tonnes in October 2019. In terms of Export figures, a rise of 11.58 percent from 784,433 tonnes in October 2019 to 875,266 tonnes in October 2020 was observed. Cement sales reached 19.3 million tonnes in the first quarter which is 19.3 percent more than the last year for the same time.

Talking about another major industry of Pakistan’s economy i.e telecommunications, the government has announced the launch of Spectrum Strategy 2020-2023 to assist commercial telecommunications operators in their network planning investments due to a significant rise in demand. Mobile data traffic in Pakistan rose from 165 percent to 69 petabytes in 2017 to 128 petabytes in 2018. Data use increased from 0.34 Gb/user/month in 2016 to 1.75 Gb/user/month in 2018.

Exports rose by 10.5 percent in October 2020 over the last month, with a rise of US$ 196 million to US$ 2.1 billion. On the other hand, imports decreased by 15 percent to US$3.7 billion in October 2020 by US$647 million compared to the previous month.

Real Estate Contribution To Pakistan’s Economy

Pakistan’s real estate sector is one of the major pillars of Pakistan’s economy. As per the World Bank’s Calculation, the size of the country’s real estate assets is between 60 and 70 percent of the country’s total wealth; if we extend this estimation to Pakistan, the average size of our real estate sector is between $300 and $400 billion.

Pakistan’s Real Estate did not perform well due to several financial, economic, and political challenges. But we can hope that things will get better if not immediately then gradually in 2021.

Real estate has slowed since 2017 due to political turmoil and volatility in economic and financial policies. With no incentives for investors and ban imposition on non-filers played a key role in deteriorating the real estate sector.

FBR’s strict regulations on non-filers’ banking transactions further discouraged the investors from investing their into the real estate market in 2018-19. The inability to utilize the development budget led to a contraction in the building sector is another factor to contributed to the real estate sector’s downfall.

One of the few reasons we believe to see the boom of Pakistan’s real estate market in coming years is CPEC. China Pakistan Economic Corridor is the iconic project between the two countries that has the potential to change the dynamics of Pakistan’s economy. The significant economic zones of CPEC are yet to be established, however, the benefits of CPEC can be seen with improved power situation and partial completion of the Lahore-Karachi motorway.

Pakistan’s real estate market is quite unpredictable. Therefore, you should be very vigilant and aware of the latest developments and updates related to Pakistan’s real estate market. Being aware of the current real estate conditions will help you make a rational and lucrative decision regarding real estate.

Property prices in Pakistan usually don’t go up even during inflation and uncertainty. This fact can make the investment much more challenging.

The real estate industry is fully capable of persevering through difficult times and that’s something special about this industry. Fair property values are the need of time to make the property affordable for every citizen which will be the ultimate success of the country’s real estate market.

What 2021 has for Real Estate?

The pandemic and uncertain political situation have affected the real estate market in 2020. We can hope things can get better and the real estate market will start to attract investors in the years to come

CPEC is an important venture. The economic corridor offers a source of overwhelming foreign investment. The web of roads under the megaproject is connecting Pakistan’s Gwadar port to China’s Xinjiang capital. This corridor will not only facilitate the economic activities of both countries but also open new doors of opportunities and growth to Pakistan’s real estate market. As the hub of CPEC activities, the demand for real estate is expected to rise in Gwadar and its outskirts.

2021 And Karachi’s Real Estate

Let’s discuss how Karachi’s real estate market is expected to perform in 2021 and what are our recommendations regarding investment in Karachi’s real estate market.

Karachi, the country’s largest city and the world’s seventh-largest metropolitan, is the major business hub of Pakistan. With ample opportunities for every sector, the Real estate sector still rules the city as the best investment domain.

Area Wise Recommendation For Investment in 2021

1) Gulshan E Maymar

Gulshan e Maymar is Karachi’s one of the most famous areas of Karachi. Maymar, located in the heart of Gadap Town, is a sophisticatedly designed area that has beautiful and well-trimmed parks, greenery, and serenity. Maymar is also known as Mini Islamabad, as the town was planned along similar lines as that of the federal capital. Gulshan-e-Maymar essentially consists of 10 sectors. According to recent research, Gulshan-e-Maymar is one of the most favorite destinations for renters. The peaceful and Calm environment of this vicinity is the key factor behind its rising demand. Let’s explore some of the other factors that attract people to opt out Maymar as their most preferred rental option in Karachi.

Gulshan-e-Maymar saw a significant improvement in terms of prices in 2019. Construction activities in Maymar are also in full swing due to the rising demand for housing on the outskirts of the city. Up to 70% of Maymar has already populated and still, the demand is high. Maymar has also attracted some of the city’s reputable builders such as Saima builder, Ayesha Builder, and Mehran Builder. Interestingly, all the new projects in Maymar are having a price tag of between 9 to 11 million. Therefore, Maymar has a lot to offer in the residential as well as in the commercial sector. We can say that Maymar will continue this potential in 2021 as well.

Latest Prices of Gulshan E Maymar

2) Scheme 33

Scheme 33 is our second recommendation for the year. Prices in Scheme 33 increased significantly in 2020, therefore, whether you’re a genuine buyer or investor, we suggest you invest in those societies of Scheme 33 where the lease is available along with all basic utilities such as water, electricity, and gas, etc. my key society of scheme 33 is Saadi town, Saadi garden and peer Ahmed zaman for investment purpose. No matter which society you choose, never forget to visit our list of illegal societies to ensure your hard-earned investment will not go in vain.

3) DHA City

DHA city is our third recommendation Defense Housing Authority is another massive success in the paradigm of house schemes that are under the administration of the Pakistan Army and mainly takes care of the development of residences for military officers that are in-service and retired.

The construction of the Malir expressway is another major development complimenting the DHA city. We can predict a lot of potential and significant jumps in prices for DHA city in 2021. We recommend you go for DCK if you’re interested in making a long term investment. DHA city has the potential of returning 100 percent of the investment within the span of three years.

Latest Prices of DHA City

4) Garden City

Garden City is our fourth recommendation for 2021. The project is situated near to Gulshan-e-Maymar and has all the utilities. Due to the significant rise in Maymar’s prices, Garden city experienced a boom in 2020. So, Garden city can offer a good alternative near Maymar.

5) Taiser Town

If you’re short of capital and really want to invest with a very minimal budget, our fifth recommendation for you is Taiser Town.

Property Ranking Analysis Of Pakistan

Pakistan has made significant improvements in the Property Rankings. The country is on the right path to establishing suitable conditions for corporations. As per the study of “Doing Business in 2020”, the World Bank has placed Pakistan at 108th position globally. Which is better than Pakistan’s previous 136th position. The jump of 28 spots indicates the enhancement in the economic environment which will ultimately draw direct foreign investment in the country and create job opportunities.

According to the World Bank, the flow of foreign investment and the widening of the market have a direct link to the valuation of real estate. The better economic factors suggest that the coming year will raise the market for luxury and commercial housing societies.

Our Advice for Pakistan Real Estate Investors in 2021

As a real estate investor, you should explore various asset categories of real estate before making your real estate investment such as residential land, apartments, homes, and commercial units such as offices, multifamily, industrial, and farmlands. You should ensure that you invest in such tangible assets instead of just a piece of contract or paper. We never recommend you invest in misleading products and documents claiming to be real estate but have no physical existence and actual value.

Pakistan’s real estate approach is very solid. The real estate market attracts not only local but also foreign investment. Other than that, several residential and industrial projects across the country are under development that provide lucrative investment opportunities. These properties are legal with investor-friendly repayment plans.

Meanwhile, if you want to read more such exciting lifestyle guides and informative property updates, stay tuned to Feeta Blog — Pakistan’s best real estate blog.

Pakistan Real Estate 2023 – Analysis, Forecast & Investment Options

The real estate industry is one of the major and fastest-growing industries in Pakistan. The country spends over $5 billion in construction work annually. Today, we are going to analyze the Pakistan real estate 2021. We will discuss and predict the performance of the real estate market considering the current situation and possible future events.Despite

Prices and Types of Flooring Tiles in Pakistan

Guide for flooring tiles and their rates

Bathrooms and kitchens were previously the most typical places in Pakistan to find Flooring Tiles. In contrast to mosaic or marble flooring, which would have been historically popular in residences, now it is widespread and completely fashionable for newly built houses to employ tiles as the most frequent flooring type. As a result, if you’re renovating your home’s flooring or building a new one, you’ll need to know what type of tile to use and how much it’ll cost. Keep on reading as we go so over different construction tiles available in Pakistan, as well as their prices based on sub-varieties, brands, and some other criteria.

Types of Flooring Tiles

Let us discuss the most common varieties of floor tiles in Pakistan

Ceramic Tiles

Ceramic tiles are one of the most popular clay-based tiles on the market. They are mined, prepared, and molded before use. Their ability to blend in with almost any type of interior décor will astound you. Ceramic tiles’ most important features include their long lifespan, variety of applications, and strong resistance to scratches and abrasion.

They can sustain years of constant foot activity thanks to their durability. They provide a diverse range of design options. Ceramic tiles feature matchless colors and patterns and thus are usually covered in a durable finish. Ceramic tiles, but will not be used outside because they cannot withstand the heat and therefore do not adapt well to the freezing temperatures that winter brings. They have a proclivity for moisture absorption.

Porcelain Tiles

Someone frequently classified porcelain tiles as ceramic tiles because of the subtle differences between them and ceramic tiles. Porcelain tiles are made of denser clay but are fired at greater temperatures than non-porcelain ceramic tiles. As a function, the material is much more durable and resistant to harm. Porcelain tiles, unlike standard ceramic tiles, can be utilized outside because of their low porosity and improved resilience to cold and extreme temperatures.

Porcelain tiles are available in polished and unpolished finishes and thus are suited for a range of domestic and commercial applications with light foot traffic. They also are available in glazed versions, but this is less durable.

Granite Tiles

Granite tiles are the best choice whether you’re planning to put tiles in a high-traffic location. They’re made of granite, a dense and durable igneous rock. This rock’s speckled minerals and unique veining not just set it apart from other materials, but the mix of the two also ensures that neither two granite surfaces are alike. Granite tiles have such a fantastic reputation in the flooring industry because of this. Luxurious establishments get a strong demand for them since they are produced in a large variety of colors and have a great aesthetic value.

The natural and durable material utilized aids the scratch-resistant surface. Granite tiles are light and tiny in size, making them easy to work with. They are also acid-resistant. Granite tiles, like marble floors, are highly porous and stain-prone. However, once polished, they perform admirably in terms of scratch resistance.

Travertine Tiles

Travertine pieces are made of travertine, a form of limestone found in hot springs, natural spring springs, and caves all around the world. The material comes in a variety of hues and has pits or a rough texture that is caused by air bubbles and organic materials. Travertine tiles have such a beautiful surface that illuminates and provides your interior area with a natural look.

The durability of the travertine material can be judged by the fact that it was used to build the ancient Roman structures which can be seen in Italy today. As a result, the travertine is an excellent choice for temples, sculptures, and theatres. It is now commonly used in the construction of pathways, restrooms, pool decks, as well as other areas in which there is a lot of water exposure. Travertine is 100 percent biodegradable, giving it an ecologically friendly material. It’s both long-lasting and easy to manage.

Even though it’s a less expensive alternative than some other high-end materials, travertine tiles still are pricey, and so many people cannot afford to install them.

Slate Tiles

Slate, which is mined from natural mineral deposits, is one of the most popular floor coverings. It aids throughout the production of extremely durable tiles while still inducing natural beauty to give your floor a stunning appearance. The material can maintain a room warm even while providing a safe flooring option because of its high slip resistance. Regardless of the fact that slate tiles are less expensive than marble and granite tiles, they still are regarded as high-end and attain a greater price than ceramic tiles.

Sandstone Tiles

Sandstone tiles are designed to give your outdoor spaces a deep, natural feel. Pool surrounds, patios, and walks are among the most typical applications. Sandstone tiles come in many colors, patterns, and sizes, and they add a great earthy touch to every space.

Matte Vs Glossy

As stated earlier, a print, design, or pattern is applied on ceramic and porcelain tiles after they’ve been cooked throughout the kiln. The magnitude of these effects can vary, as well as the resulting pattern can be glossy or matte.

Matte tiles are commonly used in kitchens and bathrooms where there are a lot of water spills because shiny tiles could be highly slippery in high-traffic areas. Shiny tiles give the floor a sheen and add elegance to a room’s appearance, rendering them more popular in lounge spaces and drawing rooms. Granite tiles will not have prints imposed on them since they are made of natural rock, and they are usually available in matte varieties with a coating applied to give them even more enduring.

Half-body Vs Full-body

The amount of wear and tear that full-body and half-body tiles can withstand is the key difference. Concrete pavers are always half-body, which implies that after they are manufactured, a thin layer of paint is applied to a tile. Porcelain tiles, on the other side, come in half-and full-body variants. Because the printed layer on half-body tiles is just a few centimeters thick, when the tile is broken, the top layer would be exposed, exposing white or red clay beneath.

Full-body tiles, on the other hand, are designed to have their color, pattern, or design walk the length of the tile. When these tiles are chipped or filed away, they expose a second layer with the same design as the first, rather than a patch of clay underneath, that can be unsightly. Granite tiles, unlike the other two, are always full-body because they are cut from genuine rock.

Round-edged Vs Laser-cut

Tiles have always been put with a certain number of spaces between them, which are filled with grout. Depending on the manufacturing methods used and the material used, they could be round-edged or laser-cut. Granite tiles, for example, always are laser-cut away from the rock, resulting in sharp edges. Ceramic tiles, on the other hand, normally have rounded edges, but porcelain comes in a combination of both options.

What Type Of Tile Should I Use And Why?

You now know about the three most common varieties of flooring tiles in Pakistan; choosing between these may well be influenced by a variety of factors, such as.

  • Size
  • Strength
  • Durability
  • Target area
  • Availability of patterns
  • Ease of installation
  • Cost

Here is another quick rundown of the factors to consider about this before deciding on the tile that’s right for you.

Size

Tiles come in a variety of sizes, with 1224 inches, 1236 inches, 1824 inches, 2424 inches, and etc being one of the most frequent for central living areas. Larger square tiles are recommended for lounges, drawing areas, and dining rooms, in short. The most common sizes for corner walk-in showers are 912 inches and 1218 inches. Some individuals, though, prefer to use larger tiles in restrooms because they make a small space appear larger.

Tiles come in a variety of sizes, with 12*24 inches, 12*36 inches, 18*24 inches, 24*24 inches, and etc being the most frequent for central living areas. Larger square tiles are recommended for couches, drawing areas, and dining rooms, in short. The most common sizes for corner walk-in showers are 9*12 inches and 12*18 inches. Some individuals, though, prefer to be using larger tiles in restrooms because they make a tiny space appear larger.

Strength

Granite is by far the most durable alternative available, however ceramic is the most vulnerable to breaking and damage. Porcelain tiles will be in the middle of the strength spectrum, but they outperform ceramic equivalents.

Durability

The durability of a tile also is determined by its strength. This implies that of the three alternatives, granite is by far the most durable. Granite also is easy to polish and restore to its former brilliance over time, but porcelain and ceramic tiles may have to be replaced.

Target Area

Because ceramic and porcelain tiles are not too slippery, they are commonly used in the kitchen and bathroom, while glossy tiles of both types are ideal for central living areas where water spills are uncommon. If we truly want your kitchen to survive, go along with granite tiles, which are not only more water-resistant than the other two but also more resistant to damage, cracks, and chips in the event that you drop a large pot or pan on the ground accidentally.

Availability Of Patterns

Geometric, floral, wood, and a variety of many other designs are being printed on half-body ceramic or porcelain tiles, leading to a new boom in the tiling sector. Full-body porcelain tiles, on the other hand, have fewer variations since it is more difficult to create a wide variety of ideas in the clay mixture before firing it. However, since granite tiles are produced from actual stone, there is indeed a restricted range of patterns from which to choose.

Ease Of Installation

Ceramic and porcelain tiles are simple to construct on cement floors because they are bonded with a layer of glue. It can be installed as a do-it-yourself project as well. Granite tiles, on either hand, require specialized installation. An ordinary tile mason can charge between Rs. 22 and 25 per square foot, but if you really want the greatest finish, choose who charges between Rs. 32 and 35 per square foot.

Cost

The cost of tile flooring in Pakistan is an important factor to consider. It flooded the tiling market in Pakistan with foreign ceramic or porcelain tile possibilities. China, Iran, Indonesia, Malaysia, and Spain are also the main suppliers of ceramic tiles. Chinese or Irani tiles, but are also the most frequent, are the cheapest, costing around Rs. 800 and Rs. 1,000 per meter (approximately 3.25 feet). Manufactured in Malaysia and Indonesia, a slightly better quality of tile is accessible in the store for roughly Rs. 2,300 to Rs. 2,800 per meter. The best quality tiles in Pakistan originate from Spain, and they begin at Rs. 2,800 a meter and then go up from that.

Porcelain tiles, on the other hand, are classified according to whether they are full-body or half-body in terms of cost. Half-body porcelain tiles start at roughly Rs. 1,200 per meter, whereas full-body tiles up to Rs. 2,000 per meter. It’s important to note that this was just the beginning price for porcelain tiles; branded and imported kinds might be considerably more expensive. Granite tiles are usually of good quality, with a long lifespan and great strength. As a reason, their typical price per meter is somewhere between Rs. 1,000 and Rs. 1,200.

If you consider the factors listed above, you know you’ve got a choice not only between various types of floor tiles in Pakistan but as well as between the features you want in your tiled flooring or the amount of money you have put down for a home repair and construction project. We’ve provided all of the information so that you can make an informed decision about your home’s flooring specifications.

Also, if you want to read more informative content about construction and real estate, keep following Feeta Blog, the best property blog in Pakistan.

Prices and Types of Flooring Tiles in Pakistan

Guide for flooring tiles and their rates Bathrooms and kitchens were previously the most typical places in Pakistan to find Flooring Tiles. In contrast to mosaic or marble flooring, which would have been historically popular in residences, now it is widespread and completely fashionable for newly built houses to employ tiles as the most frequent