Pakistan Real Estate Market’s Contribution to The Economy of Pakistan

by James Martin


Pakistani Real Estate has played an important role in the economy of Pakistan since the past few decades. Not only this, but Real Estate can be seen as one of the fastest growing sectors of the economy as well, with both national and international investors taking part in it. Real Estate contributes to almost 6 percent of the GDP (Gross Domestic Product) of Pakistan and 60 percent of the total employed people are associated with it in some way or another and directly contribute to 15 percent of GDP. Get the idea from Nova City.

  1. What Is the Pakistani Real Estate Industry?

The Pakistani real estate industry is one of Pakistan’s most important economic sectors and contributes immensely to its economy. According to a survey conducted by Karachi Chamber of Commerce and Industry (KCCI), over 50% of Pakistan’s GDP is generated from construction-related industries, including real estate, cement, steel and other related businesses. Out of every 100 Pakistani rupees generated in 2007, 30 are said to have come from property business.

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  1. How Much Did the Pakistani Real Estate Contribute to The GDP From 2018 To 2020?

Pakistani real estate contributes to 0.7% of Pakistan’s GDP. With major cities becoming more congested, there is a greater demand for suburban property in smaller cities outside of Lahore and Karachi. To combat over-congestion, development projects are being established beyond city borders; however, risks associated with such developments include ineffective planning and corruption in local government bodies. The Pakistan Real Estate Commission (PERC) was formed to monitor private sector projects within a given district and ensure that contractors follow set standards while also keeping an eye out for any corrupt practices happening during construction or other stages of investment. By collaborating with law enforcement agencies like FIA/NACO, PERC has been able to secure numerous convictions in cases related to contractor or vendor fraud.

  1. The Positive Impact of Real Estate to The Country

The Pakistani real estate market is said to be one of the largest in Asia and will most likely sustain its steady growth for years to come. The tremendous economic impact it has on Pakistan is indubitable as it has given birth to a number of millionaires who now live in mansions that have a value exceeding million. It generates millions of jobs through construction, design, financial management and marketing etc. Not only does it make some people very rich, but it also creates development opportunities for investors both local and international.

  1. Impact Of Big Project Like CPEC On Pakistan Real Estate

The China-Pakistan Economic Corridor, or CPEC is a collection of projects that are meant to improve infrastructure in Pakistan. The project is worth $62 billion, which is funded by a loan from China. One sector that will see a big boost from CPEC is Pakistan’s real estate market. Many of these projects are going to be executed in Balochistan and will require new residential and commercial property development. Property prices in Pakistan have always been very volatile—they tend to fluctuate with overall economic activity—and growth tends to follow news about large development projects such as CPEC. Investors are drawn to stability, so when they hear about plans for new property developments along major corridors, they invest accordingly.

  1. Criticism Over Land Acquisition

While economists say that real estate has made positive contributions to Pakistan’s economy in terms of generating income and tax revenue, recent criticism over land acquisition suggests that many lands have been taken from farmers without adequate compensation. Many Pakistanis believe that their country needs to find alternative ways to raise revenue—ways other than relying so heavily on land. Furthermore, many economic analysts feel that Pakistan should implement policies aimed at encouraging greater industrialization and foreign investment in order to strengthen its long-term economic growth. This way, if investors do decide to go through with building a facility or factory, they’ll be less inclined to simply use it as an offshore call centre.


Pakistani economy’s dependence on real estate is heavy because real estate business contributes more than 60% of GDP and generated over $600 billion per year. In addition, it created more than 500,000 job opportunities and added 2-3% to national income and contributed 9-10% taxes to federal government. Unfortunately, Pakistani real estate industry was also burdened with tax evasion, corruption, smuggling and black money laundering.

Author Bio

Muhammad Junaid is a CEO of VM Solutions, senior Analyst, and Search Engine Expert. Extensive experience being an IT Manager in NextGen Marketing – Park View City. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.


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