The Issues of Real Estate in Pakistan

The real estate market in Pakistan has been prospering to great levels even during the Covid 19- Pandemic. However, despite the prosperity, there are still a few issues that should be addressed if the real estate market wants to keep prospering.

Common Problems in Pakistan Real estate

The country’s real estate industry might be succeeding but there are also a few challenges that need to be faced. Some major issues in the country’s real estate industry are as follows.

Shortage of Housing Units

Due to the country’s increasing population, there has been a shortage of housing units according to a report printed in the year 2019. With the shortage of housing units, many people were forced to live in horrible conditions, going as far as living in one-bedroom rentals. Another scenario is that due to inflation, most people cannot even imagine buying their own home, and rental units of more than one bedroom are very expensive.

This housing crisis was noticed by the government as well and to overcome this problem, the Prime Minister launched the Naya Pakistan Housing Program. The purpose of this initiative is to provide affordable housing to the low-income group in the country and minimize the rift between demand and supply of houses throughout the country. This program’s target is to provide a cheaper housing alternative to 5 million citizens belonging to the labor class, lower-middle-class, and even the middle class


Before the era of technology, people relied on the word of the professionals in the real estate industry to give them the proper and true information regarding any new projects. Investors had no way of confirming any information regarding any project and thus put their trust in the agent’s words. This resulted in many investors either losing their money altogether or investing in useless projects that would not generate positive revenue for years.

With the technology available in the 21st century, there is little to no chance of investors being misinformed about projects. Video calls, smartphones, and the internet have reduced the chances of people being misinformed regarding the real estate market. However, there is still a lot of work to be done to overcome this challenge completely.

Interest rates:

Interest rates play a significant part in the prosperity and advancements of the real estate industry. Various banks will offer investors financial loans to invest in the real estate market but with the rise in interest rates, it becomes almost impossible to return these loans. The government should impose a low-interest rate for housing loans to encourage people to invest in real estate.


Due to Pakistan being a developing country, there are a lot of doubts that investors have regarding the real estate market as well. Several things add to the increase in the real estate industry’s volatility.

Some of these issues include the sudden shift in the country’s politics, changes in the country’s social factors along any natural disasters that can occur. All these factors combined can impact the real estate market and can even scare away future investments.

Tenant Problems:

The ‘qabza-mafia’ is very active in some of the smaller cities in the country and even in some of the poor areas of the major cities in Pakistan. Most of the time when people put their property up for rent, the tenants try their best to take over the property and not move out even when forced to leave.

There are currently no laws in Pakistan that can prevent renters from taking over rental properties. The best solution to this problem is to have a written agreement with the help of a real estate agent to make sure that the tenants can be asked to leave the property whenever the landlord wants.

Despite all these problems in the real estate industry, the market is still prospering due to the handful of honest people out there. If these problems can be tackled even in the slightest, the market will succeed even more.