- September 20, 2024
- Posted by: Muhammad Shehzad
- Category: Blogs
Pakistan’s commercial real estate market is experiencing price hikes and economic instability. This time, the industry is asking for tougher tests. The experts predict that the period of contraction will be long, or at least longer than what has been experienced in the past, for investors and the economy in general.
As a real estate policy analyst speaking to the All Pakistan Real Estate Association, Hassam Ali said that the once vibrant commercial estate segment is almost stagnated and shows no signs of revival any time soon.
Factors Behind the Residential Real Estate Recession
When speaking to WealthPK, Hassam Ali said that the growth of the sector’s decline is due to a set of factors, including heavy-pounding regulations, inadequate governmental support, and shifts in the market.
“That only means that we cannot expect any considerable improvement as long as the government has not shifted from old practices and started adopting progressive policies. It is costly for the investors to engage in the sector due to regulatory compliance issues, and there are no benefits for developers, which has led to the decline of new projects and a general oversupply of commercial property.”
Experts believe that a major overhaul is required to revive the sector. Considerable factors include enhancing political stability, applying better and transparent procedures, and encouraging investors. Hassam Ali further stated, “The prediction is particularly significant because it paints a rather bleak picture of the future of commercial real estate in Pakistan were the change not to happen,”
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Speaking with WealthPK, the Marketing Head of Rawaha Real Estate and Builders, Khawaja Umair, explained that due to the lack of supportive measures and strategic planning, the commercial real estate market is very sensitive to changes that are taking place in the global market. The problems in the commercial property area have been worse due to the economic difficulties within the country, such as inflation and depreciation of the national currency.
Stay tuned to get more updates on the residential real estate recession.