Pakistan’s Real Estate Market Trends in 2018

The year 2018 was not an especially lucrative one for the real estate sector, primarily due to the economic downturn, as a result of which Pakistan real estate market transaction decreased significantly.

Here are a few trends that emerged in 2018:

Residential Real Estate Investment Trends

• The prices of houses increased by up to 10%; rentals remained the same when compared to 2017.
• The prices of, and demand for, plots increased by 5 to 15%, particularly in Punjab real estate, where the sales of one-acre plots increased by 8-10%.
• Apartment related real estate market decreased by 10 to 15%; their prices decreased by 12 to 18%.
• The demand for affordable property within gated communities increased by up to 20% and their availability went up by 10%.
• Investments in plots and house on the outskirts of metropolitan cities within gated communities increased by 15 to 20%.
• Foreign real estate investments made by overseas Pakistanis decreased by 10 to 12%.
• Areas that attracted most investment include DHA (Bahawalpur), DHA (Islamabad), Bahria Town (Karachi) and Phases VI and IX, DHA (Lahore).

Residential Real Estate Investment Trends

• Property prices increased by up to 10%; rentals remained the same.
• Foreign real estate investment in Pakistan market increased by 20%
• The demand for multi-purpose commercial buildings (which consist of retail and office space) increased by 10 to 15%.
• Investment in property along the China Pakistan Economic Corridor (CPEC) increased by 5 to 10%.
• Popular real estate investment destinations included areas on the outskirts of cities such as Gwadar, Islamabad, Karachi, and Lahore. Key commercial areas that attracted investment included Jinnah Supper (Islamabad), Clifton and Shahrah-e-Faisal (Karachi) and Gulberg (Lahore).

Other Real Estate Investment Trends Include:

• The demand for, and value of, agricultural land increased by 10 to 15%
• Construction costs increased by 15 to 18%.