Real estate in Pakistan

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Real estate in Pakistan is an important and growing sector of economy of Pakistan. Pakistan spends $5.2 billion on construction in a year. According to the Pakistan Bureau of Statistics, construction output accounts for 2% of GDP, with housing representing less than half that total. With the rate of urbanization that Pakistan has been experiencing, there is a growing need for urban planning. Pakistan is home to Asia's largest real estate investors Bahria Town.[1]

In response to the spike in demand of residential properties in 2010, the real estate developers are once again interested in buying land and developing residential communities in the outskirts of the several major cities.Wealthy buyers and active investors are also seen buying property for sale in Pakistan, considering that this is the best time to invest in Pakistan real estate sector. With price range crossing the mark of 10 million PKR, many newly developed housing societies target upper middle class. Pakistan Government is also taking sound steps to recover the real estate sector.In this regard, the Government has announced a drop on interest rates of mortgage loans in 2012. It is considered a positive step that will encourage potential investors to invest in Pakistan properties.[2][3]

Recently, a U.S real estate mogul, Thomas Kramer has entered into an agreement with the property tycoon and the CEO of Bahria Town, Ahmed Ali Riaz Malik to construct first ever Island City in Karachi, Pakistan by the name of Bodha Island City. The project is likely to complete in a span of 5–10 years and it will require an estimated influx of $ 20 billion. It has also been flashed in news that a syndicate of international investors will be joining hands later to assist in the successful execution of the project. This project further endorses the fact that Pakistan real estate is an investment hotspot for the foreign investors.[4][5]