As the economic crisis continues to grow, thousands of people associated with the real estate sector have started to look for other options to survive. The inherited problem with the real estate sector has been the presence of outdated methodologies and the perception of this industry being high-risk and untrustworthy. Both combined causes many educated, interested individuals to become wary of investing their hard-earned income into this sector.
With some slight changes in the mindset and the industry practices, this sector can become profitable for all the stakeholders including the government. Besides all the issues, this sector provides an excellent opportunity to grow your career. Moreover, those looking to make a career in this sector, there lies a chance to create a positive and real change in this sector. All of it can be implemented through a change in approach on the part of real estate agents and developers.
The real estate market is under the influence of uneducated people who claim to be “experts” at what they do. However, they don’t have the necessary skill set to guide people in the right way and play a significant part in curbing frauds that causes financial losses to the people. If you are naive or a newbie in this industry and want to make an investment, you will not find the high-risk, low return factor because every dealer will promise you a safe and secure investment with quick, high returns. This is more dangerous than it sounds because any overseas Pakistani returning to the country lose their money because of the lack of investigation and land fraud cases. All of it combined has really tarnished the image of the real estate agents. People in Pakistan save money all their lives to buy a home for their family and it should come without fraud and other complications.
Another major issue that is a question mark on the repute of the real estate is the failure to deliver on time. There have been many cases in the past where the developers have failed to deliver the project on time and people had to wait for several years to get their plots. A recent example has been the LDA Avenue-I Housing Project that has been facing delays since 2002.
There are several factors that cause these delays ranging from NOCs, fake claims, site going into litigation, incomplete paperwork, and investment not procured by the developers. The Sector E-12 in Islamabad, for example, where plots were sold out in the late 80s, but allotted owners have still not gained possession of the developed plots.
Real estate has never been considered as an industry but the fact is that is the most obvious tax haven and wealth concealment area that contributes heavily to the country’s Gross Domestic Product (GDP). What this means that if substantial measures are taken by the government, they can make this industry more productive in terms of revenue generation. Another picture of this story is that the government is not making full use of the sector by not paying the attention it needs. The magnitude of the real estate industry is coupled with less or no regulatory framework and most of the gains are not even reported to the government and made a part of the economy. On a more technical front, the supply and demand gap is yet another cause of worry for people interested in investing in the industry.
Despite the growing problems in the sector and presence of the untrustworthy developers and agents, one thing remains undeniable and that is the fact that real estate is still one of the most promising sectors for economic and professional growth for a number of reasons. Pakistan’s real estate has grown into a vital source of economic growth in the country with the growth ratio being more than other sectors of the country. As per a recent report issued by the State Bank of Pakistan, “The combined direct contribution of construction and housing sectors to the country’s GDP has been consistently higher than 9% of the past decade.”
The demand for apartments has increased significantly in the last couple of years in urban areas, especially in Lahore, Islamabad, and Karachi. All these numbers are good indicators of growth in a country like Pakistan. Secondly, real estate is a rewarding career path for young people, especially fresh graduates, to kickstart their job experience. The current state of the market has become very stale and dull because there is no innovation in this sector. When nothing seems to be going the way it should, it is time to take some steps to make a dent and make things go the way you want.
Just like other sectors of the country, 2020 is being termed as the year of transformation for the real estate sector. The implementation of new regulations and cooperation of all the stakeholders will play a crucial role in establishing its repute as the biggest and best sector of the country. It can be the most rewarding and wanted career paths in the years to come and the credit should go to those who are playing a vital role in making sure that more opportunities are created within the sector and real estate agents are trained and educated. The foundation of this change has already been laid as the National Institute of Real Estate Management (NIREM) has been inaugurated in Karachi. This institution, founded by Zahid Iqbal, is focused on training the real estate agents and help them uplift their skills and knowledge about the sector.
For investors, the last quarter of 2019 came as a small relief to the ailing economy as both the USD rate and stock market stabilized, which is an excellent sign for 2020. All of these developments combined will ultimately help in the resurrection of the real estate sector and take it to new heights. So, it all looks so pleasing for the real estate sector and we, at ilaan.com, are ilaan.com are excited and hopeful that it turns out great for the people in this sector.