The global economic surge has brought multiple challenges for almost every industry. Pakistan being the 5th most populous country in the world has a strong labor force and a growing middle class that has been severely affected.<\/p>\n
The inflation rate of the country is contributing to a healthy spike in the housing industry.<\/p>\n
According to an estimate, in March 2019 the country’s inflation rate remained at 9.4% up from 8.2% in Feb 2019. This figure presents a bleak picture that in terms of housing is discussed below.<\/p>\n
If we analyze the real estate industries of major cities, the cost of houses in Lahore starts from 10,402 (the US $93) per sq. ft. in the 1st quarter of 2019 showing a 4.25% increase from than previous year.<\/p>\n
Similarly, in Islamabad, this figure remained at Rs. 9.985 (the US $70) per sq. Ft in 1st quarter of 2019 that reflected an increase of 7.01%.<\/p>\n
Apart from this, the macro and microeconomic indicators also forecast similar developments as in just a few years the value of PKR has dived in that was 139 Pkr = the US $1 in March 2019 and as of today, it stands at 201 Pkr.<\/p>\n
The recently grabbed package from IMF also holds tough attestation that resulted in an increase of 7.5 Rs per unit of electricity while a sudden increase of 60 Rs in Petrol Prices taking the figure to 210 Rs has further obstructed any conceivable way out.<\/p>\n
The troubled inheritance of every successive government equally contributed to the price hike in the housing sector of the country.<\/p>\n
Moreover, the real estate industry is known as a shelter of tax evasion and capital suppression, perhaps, because of administrative oversight combined with low authority property valuations that result in artificial price hikes, burdening the already burdened end user.<\/p>\n
Most importantly, the shortage of housing with respect to the need of people is an ever-growing trend and this disparity also contributes to this assessment.<\/p>\n
According to a survey in 2019, there was a shortage of estimated 10 million housing units that definitely would have increased in these post-COVID times.<\/p>\n
Unlike the rest of the world, Pakistan’s mortgage market stays exceptionally minute which in 2018 was equal to 0.3% of GDP that\u2019s of course due to the mortgage charges of 15-20%, much high than that of the world, making it an unhealthy decision for the people.<\/p>\n
The rise in the interest rate which stands at 13% has minimized the confidence of investors in real estate as well as the construction industry, which resulted in a disturbance in the stock market.<\/p>\n
Out of 351 active scripts, 67 concluded the day on the green, 269 ended the day in red and the valuations of 15 other businesses stayed unchanged<\/p>\n
In a broader perspective, the ongoing war in Ukraine and the global commodity supercycle have pushed inflation to higher levels due to which countries like Pakistan faced a huge blow.<\/p>\n
The results aforementioned factors have brought can be summed up as an urban house\/apartment is approximately PKR 11.7 million which is 184 times the average salary of a citizen, making it further difficult for an ordinary person to afford a personal house.<\/p>\n
There is the price in every element of the housing sector, building material, and construction products which have brought a cascade effect on the overall real estate sector. It is clear to predict a tough time ahead but minor developments after the upcoming budget are yet to be seen.<\/p>\n","protected":false},"excerpt":{"rendered":"
The global economic surge has brought multiple challenges for almost every industry. Pakistan being the 5th most populous country in the world has a strong labor force and a growing middle class that has been severely affected. The inflation rate of the country is contributing to a healthy spike in the housing industry. According to an estimate, in March 2019 the country’s inflation rate remained at 9.4% up from 8.2%\u2026<\/p>\n","protected":false},"author":3,"featured_media":734,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[118],"tags":[],"class_list":["post-733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"img_urls":{"thumbnail":["https:\/\/propakistani.pk\/proproperty\/wp-content\/uploads\/2022\/07\/What-Rising-Inflation-in-a-Hot-Market-Means-for-Homebuying-Right-Now-Real-Estate-Coaching.jpg",1920,1080,false],"medium":["https:\/\/propakistani.pk\/proproperty\/wp-content\/uploads\/2022\/07\/What-Rising-Inflation-in-a-Hot-Market-Means-for-Homebuying-Right-Now-Real-Estate-Coaching.jpg",1920,1080,false],"full":["https:\/\/propakistani.pk\/proproperty\/wp-content\/uploads\/2022\/07\/What-Rising-Inflation-in-a-Hot-Market-Means-for-Homebuying-Right-Now-Real-Estate-Coaching.jpg",1920,1080,false]},"author_name":"Firas Qureshi","categories_name":["Blogs"],"title_text":"Inflation and Real Estate Industry","related_stories":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/posts?filter&per_page=4&categories=118&exclude=733","_links":{"self":[{"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/posts\/733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/comments?post=733"}],"version-history":[{"count":0,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/posts\/733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/media\/734"}],"wp:attachment":[{"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/media?parent=733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/categories?post=733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/propakistani.pk\/proproperty\/wp-json\/wp\/v2\/tags?post=733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}